Best Buy's Strong Q2 Overshadowed by Cautious Outlook as Computing Tailwind Fades, Wedbush Says

11:39 AM EDT, 08/28/2026 (MT Newswires) -- Best Buy's (BBY) strong fiscal Q2 results contrasted with a cautious outlook for the rest of the year, as the electronics retailer expects computer demand to moderate after a temporary Windows 10-related boost, Wedbush Securities said Friday in a report. Best Buy delivered broad-based strength in Q2, with comparable sales rising 4.1%, well above consensus and driven by gains in computing, mobile phones, home theater and emerging products such as AI glasses, Wedbush said. Adjusted EPS of $1.46 also topped expectations, though margins were softer because higher incentive compensation diluted the beat, the report said. Wedbush raised its fiscal 2027 EPS estimate to $7.65 from $7.27, saying the forecast appears achievable, though the stock's outlook is balanced given uncertain consumer response to rising computing prices and potential tariff-refund-driven promotions during the holiday season. Wedbush reiterated its neutral rating on Best Buy stock and its $85 price target. Price: 82.87, Change: -0.69, Percent Change: -0.83