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Best Buy BBY Operating margin

Operating margin at other companies

Target logo
TargetTGT
4.5%-0.9pp
Walmart
 logo
Walmart WMT
4.2%-0.2pp
Costco Wholesale logo
Costco WholesaleCOST
3.8%+0.1pp
Amazon logo
AmazonAMZN
11.5%+0.5pp
Dell Technologies logo
Dell TechnologiesDELL
7.9%+1.3pp
SharkNinja logo
SharkNinjaSN
11.7%+2.0pp

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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Gross margin22.5%-0.1pp
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 operating margin?
Best Buy (BBY) reported operating margin of 3.7% in Q1 2026.
How has Best Buy's operating margin changed year-over-year?
Best Buy's operating margin increased by 30.4% year-over-year, from 2.8% to 3.7%.
What is the long-term trend for Best Buy's operating margin?
Over 4 years (2022 to 2026), Best Buy's operating margin has grown at a -18.2% compound annual growth rate (CAGR), from 24% to 10.8%.
What does operating margin mean?
The profit left from core operations for every dollar of sales, before interest and taxes.
How do you interpret operating margin?
Expanding operating margin shows operating leverage — revenue growing faster than the cost base. Compression points to rising overhead, pricing pressure, or investment ahead of revenue.
How does operating margin compare across companies?
Strong cross-company signal within a sector. Capital-light businesses sustain higher operating margins than capital-intensive ones.