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Best Buy BBY Gross margin

Gross margin at other companies

Target logo
TargetTGT
28.1%+0.1pp
Walmart
 logo
Walmart WMT
25%+0.1pp
Costco Wholesale logo
Costco WholesaleCOST
12.9%+0.1pp
Amazon logo
AmazonAMZN
50.6%+1.4pp
Dell Technologies logo
Dell TechnologiesDELL
19.1%-3.0pp
SharkNinja logo
SharkNinjaSN
48.4%+2.6pp

Other financials

Income statement

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Revenue$8.9B+1.9%
Gross profit$2.1B+2.6%
Operating income$370.0M+69.0%
Net income$276.0M+36.6%
EPS (diluted)$1.31+37.9%

Balance sheet

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Cash & equivalents$2.0B+41.9%
Total debt$4.2B+2.0%
Total equity$3.1B+11.6%
Total assets$14.9B+5.4%

Cash flow

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Operating cash flow$375.0M+1,003%
CapEx$160.0M-3.6%
Free cash flow$215.0M+263%

Valuation

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Market cap$15.41B-9.3%
Enterprise value$17.54B-11.0%
P/E13.5×-5.8×
P/S0.4×0.0×

Profitability

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Operating margin3.7%+0.9pp
Net margin2.7%+0.6pp

Returns & leverage

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Return on equity39.1%+8.9pp
Debt / equity1.4×-0.1×
Current ratio1.1×+0.1×

Where this comes from

Calculated from Best Buy’s reported figures.

Based on trailing twelve months.

The official record: Best Buy’s 10-Q, filed June 5, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Best Buy's gross margin?
Best Buy (BBY) reported gross margin of 22.5% in Q1 2026.
How has Best Buy's gross margin changed year-over-year?
Best Buy's gross margin decreased by 0.4% year-over-year, from 22.6% to 22.5%.
What is the long-term trend for Best Buy's gross margin?
Over 4 years (2022 to 2026), Best Buy's gross margin has grown at a -0.1% compound annual growth rate (CAGR), from 90.4% to 90.1%.
What does gross margin mean?
How much of every sales dollar is left after the direct cost of what was sold.
How do you interpret gross margin?
Higher and stable gross margins indicate pricing power and a durable cost structure. A declining trend signals input-cost pressure, pricing competition, or a shift toward lower-margin products.
How does gross margin compare across companies?
Highly comparable within an industry, less so across industries — software runs 70%+ while distributors run in single digits. Track the trend more than the absolute level across sectors.