Best Buy Co Inc (NYSE:BBY) Tops Q3 Earnings Estimates and Raises Full-Year Outlook

Third Quarter Fiscal 2026 Earnings Review

BEST BUY CO INC (NYSE:BBY) reported financial results for its third quarter, ended November 1, 2025, delivering a performance that edged past analyst expectations on profitability while showcasing resilient consumer demand for electronics.

Earnings and Revenue Versus Expectations

The electronics retailer posted a mixed quarter relative to Wall Street forecasts. While revenue narrowly missed the mark, the company's bottom-line performance proved stronger than anticipated.

• Revenue: The company reported enterprise revenue of $9.67 billion, a 2.4% increase compared to the $9.45 billion reported in the same quarter last year. This figure came in slightly below the analyst consensus estimate of approximately $9.69 billion.
• Earnings Per Share (Adjusted): On a non-GAAP basis, diluted earnings per share came in at $1.40. This result surpassed analyst estimates of $1.32 per share by approximately 6%, highlighting better-than-expected operational efficiency and cost management.

Market Reaction and Price Action

The market's initial reaction to the earnings report appears muted to slightly negative. In pre-market trading, the stock is indicated down approximately 0.8%. This lukewarm response likely reflects the slight revenue miss, even as the company exceeded profit expectations. The stock's performance over recent weeks has been relatively flat, suggesting investors were awaiting the earnings results for directional cues.

Key Takeaways from the Quarterly Report

Beyond the headline numbers, the earnings release revealed several important dynamics within Best Buy's business.

• Comparable Sales Growth: The company saw a positive turnaround in a key retail metric. Enterprise comparable sales grew 2.7%, a significant improvement from the 2.9% decline experienced in the prior year's quarter. This growth was driven by strength in computing, gaming, and mobile phones, though it was partially offset by declines in the home theater and appliances categories.
• Best Buy Health Impairment: A notable one-time event was a $192 million non-cash asset impairment related to the Best Buy Health segment. This reflects downward revisions in the unit's longer-term projections due to pressures in the Medicaid and Medicare Advantage markets.
• Raised Full-Year Guidance: Demonstrating confidence in its trajectory, Best Buy raised its financial outlook for the full 2026 fiscal year. The company now expects:
  • Revenue between $41.65 billion and $41.95 billion, up from a prior range of $41.1 billion to $41.9 billion.
  • Comparable sales growth of 0.5% to 1.2%, improved from a previous range of -1.0% to 1.0%.
  • Adjusted diluted EPS of $6.25 to $6.35, raised from the prior $6.15 to $6.30 guidance.

This updated revenue outlook aligns closely with the analyst consensus estimate of approximately $42.21 billion for the full year.

Conclusion

Best Buy's third-quarter results paint a picture of a retailer successfully navigating a dynamic consumer landscape. While top-line revenue growth was modest and slightly below expectations, the company's ability to control costs and drive profitability allowed it to deliver a solid earnings beat. The raised full-year guidance suggests management is optimistic about the crucial holiday quarter. The market's tepid initial reaction indicates a focus on the revenue miss, but the underlying improvements in comparable sales and profit margins provide a stable foundation.

For a detailed look at historical earnings and future analyst estimates for Best Buy, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.