Income Taxes (Tables)

12 Months Ended

Jan. 31, 2026

Income Tax Disclosure [Abstract]

Schedule of Reconciliation of Federal Statutory Income Tax Rate to Income Tax Expense

Reconciliation of the federal statutory income tax rate to the effective tax rate was as follows ($ in millions):

	2026
	Amount		Percent
U.S. federal income tax at the statutory rate	$	295	21.0	%
State and local income taxes, net of federal income tax effect(1)	38		2.7	%
Foreign tax effects:
China - Statutory tax rate differential	(20)		(1.4)	%
Other foreign jurisdictions	8		0.6	%
Effect of cross-border tax laws, net of related foreign tax credits:
Subpart F inclusion	19		1.3	%
Other	(1)		(0.1)	%
Nontaxable or nondeductible items:
Goodwill impairment	25		1.8	%
Other	11		0.8	%
Other adjustments:
Exit of a component of Best Buy Health business	(27)		(1.9)	%
Other	(11)		(0.8)	%
Effective income tax rate	$	337	24.0	%

(1)State and local income taxes in California, Oregon, Texas, New York and Illinois contributed to the majority (greater than 50%) of the tax effect in this category.

Reconciliations of prior year federal statutory income tax rate to the effective tax rate were as follows ($ in millions):

	2025			2024
Federal income tax at the statutory rate	$	272		$	340
State income taxes, net of federal benefit	52			57
Change in unrecognized tax benefits	(5)			(6)
Expense (benefit) from foreign operations	3			(5)
Tax credits	(23)			(13)
Goodwill impairments (non-deductible)	63			-
Other	10			8
Income tax expense	$	372		$	381
Effective income tax rate	28.7		%	23.5		%

Schedule of Earning Before Income Tax Expense and Equity in Income of Affiliates

Earnings before income tax expense and equity in income of affiliates by jurisdiction were as follows ($ in millions):

	2026		2025		2024
United States	$	1,223	$	1,095	$	1,389
Foreign	181		200		232
Earnings before income tax expense and equity in income of affiliates	$	1,404	$	1,295	$	1,621

Schedule of Income Tax Expense (Benefit)

Income tax expense (benefit) was comprised of the following ($ in millions):

	2026		2025		2024
Current:
Federal	$	207	$	341	$	452
State	42		67		104
Foreign	28		23		39
	277		431		595
Deferred:
Federal	55		(55)		(177)
State	4		(7)		(37)
Foreign	1		3		-
	60		(59)		(214)
Total income tax expense	$	337	$	372	$	381

Schedule of Deferred Income Tax Assets and Liabilities

Deferred taxes are the result of differences between the bases of assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities were comprised of the following ($ in millions):

	January 31, 2026		February 1, 2025
Deferred revenue	$	119	$	125
Compensation and benefits	70		75
Stock-based compensation	30		29
Other accrued expenses	35		46
Operating lease liabilities	750		758
Loss and credit carryforwards	140		163
Property and equipment	36		57
Other	50		48
Total deferred tax assets	1,230		1,301
Valuation allowance	(143)		(172)
Total deferred tax assets after valuation allowance	1,087		1,129
Inventory	(96)		(92)
Operating lease assets	(720)		(734)
Goodwill and intangible assets	(86)		(61)
Other	(21)		(19)
Total deferred tax liabilities	(923)		(906)
Net deferred tax assets	$	164	$	223

Schedule of Reconciliation of Changes in Unrecognized Tax Benefits

Reconciliations of changes in unrecognized tax benefits were as follows ($ in millions):

	2026		2025		2024
Balances at beginning of period	$	145	$	140	$	163
Gross increases related to prior period tax positions	2		13		10
Gross decreases related to prior period tax positions	(6)		(10)		(11)
Gross increases related to current period tax positions	17		20		20
Settlements with taxing authorities	(5)		1		(3)
Lapse of statute of limitations	(18)		(19)		(39)
Balances at end of period	$	135	$	145	$	140

Schedule of Income Taxes Paid

Other information related to our operating leases was as follows ($ in millions):

	2026			2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows	$	794		$	781
Lease assets obtained in exchange for new lease liabilities	$	680		$	771
Weighted average remaining lease term (in years)	5.4			5.4
Weighted average discount rate	4.4		%	4.1		%

Income taxes paid were as follows ($ in millions):

	January 31, 2026
Federal	$	197
State and local	63
Foreign:
Canada	19
Other	5
Total(1)	$	284

(1)Includes payments for purchased tax credits of $150 million.