Best Buy Co., Inc.

Read together, the filings show a retailer whose reported profit has recovered from fiscal 2025 while its top line has barely moved. Fiscal 2026 revenue of $41.69 billion compares with $41.53 billion a year earlier, and net income rose to $1.07 billion from $927 million. Compared with the fiscal 2022 revenue of $51.76 billion, sales are about $10.07 billion lower. The Beneish M-Score of -2.733 is below -1.78, so it is not in the elevated manipulation-risk zone; this is a screening result, not proof that the numbers are clean. The Altman Z-Score of 1.85 falls in the grey zone between 1.10 and 2.60, which is neither the distress range nor the safe range, so it is worth tracking over future years. The Piotroski F-Score is 7 of 8 computable signals, a high count of favorable readings, though the individual signals are not itemized in the data. The Fog Index of 18.93 is in the 'very hard to read' band, which matters because the MD&A is where management explains the cash decline. The operating cash flow to net income ratio of 1.84 shows cash generation still exceeds reported earnings, but operating cash flow itself fell to $1.96 billion from $2.1 billion. Equity rose to $2.96 billion from $2.81 billion. Readers may want to look at the 10-Q interest rate disclosure, which reports $2.5 billion of cash, cash equivalents and restricted cash against $0.5 billion of debt swapped to floating rate, and a 50-basis point rate change that would move net interest income by an estimated $3 million in the second quarter of fiscal 2027. Readers may also want to review the risk factors on vendor imports from China, Mexico and Southeast Asia, which the company says make results highly sensitive to tariffs, even though it directly imports only about 1% to 3% of its assortment. The $5.0 billion share repurchase program approved February 28, 2022 has no expiration date. Legal proceedings are referenced to Note 10 of the 10-Q, and that note's contents are not included in the data provided.

Catalyst.The 10-Q excerpt provided covers safe-harbor language, market risk, controls and share repurchases rather than a full results discussion. Against the fiscal 2026 annual figures, revenue was $41.69 billion, up 0.4% from $41.53 billion, while operating income rose to $1.39 billion from $1.26 billion and net income rose to $1.07 billion from $927 million. The filings describe a focus on services as a strategic priority, with membership offerings such as My Best Buy Plus and My Best Buy Total cited in the risk factors. In the second quarter of fiscal 2027, a stronger U.S. dollar against the Canadian dollar reduced revenue by an estimated $12 million.

Hidden risk.The most easily missed tension is between earnings and cash. Net income rose to $1.07 billion from $927 million, yet operating cash flow fell to $1.96 billion from $2.1 billion, and revenue has dropped from $51.76 billion in fiscal 2022 to $41.69 billion. Total assets are $14.67 billion, compared with $19.07 billion in fiscal 2021. The risk factors say results are highly sensitive to trade policies and tariffs, and that the ability to raise prices to offset cost pressures might be limited. The Fog Index of 18.93 places the MD&A in the 'very hard to read' band, so the explanation for this gap is harder to find.