Best Buy's Broad Q2 Beat Shifts Debate to Earnings Durability, UBS Says

12:10 PM EDT, 08/28/2026 (MT Newswires) -- Best Buy's (BBY) strong fiscal Q2 results showed broad-based sales momentum, and the investment debate now shifts to earnings durability as investors assess whether the electronics retailer can sustain profit growth, UBS Securities said Friday in a report. Enterprise comparable sales rose 4.1% in Q2, including 4.5% growth in the US, with both measures far exceeding guidance and consensus, UBS said. Growth spanned computing, home theater, mobile phones, appliances and newer categories, while blended average selling prices fell less than 1%, implying positive unit growth, the report said. UBS said some tailwinds will fade as Windows 10 replacement demand normalizes and memory cost inflation persists, while tariff refunds continue to distort reported earnings. "The focus now shifts from sales growth to earnings quality," the report said. "The market will want to know how durable the demand is, how mix evolves and how much of the upside reaches operating income." UBS raised its price target on Best Buy stock to $90 from $86 and maintained its neutral rating. Price: 82.53, Change: -1.04, Percent Change: -1.24