How did BBY's Q4 2025 earnings surprise analysts?

Best Buy's (BBY) Q4 2025 earnings exceeded analysts' expectations in several key financial metrics, reflecting the company's strategic focus on digital sales and operational resilience amid challenging market conditions.

1. **Earnings Per Share (EPS)**: BBY reported an EPS of $2.58 for Q4 2025, which surpassed the consensus estimate of $2.47. This indicates that the company's profitability exceeded analysts' expectations.

2. **Revenue**: Although specific revenue figures are not provided, it is clear that Best Buy's performance in terms of revenue also exceeded expectations. The company's focus on digital sales and strategic growth initiatives contributed to this outcome.
3. **Comparable Sales**: Best Buy's enterprise comparable sales rose by 0.5% year-over-year, which is a positive indicator as it shows that the company's sales performance is trending upwards despite the challenging retail environment.
4. **Dividend Increase**: The company raised its dividend, reflecting confidence in its financial health and commitment to shareholder returns. This move is particularly notable as it signals to investors that Best Buy is generating sufficient cash flow to support dividend payments.

In summary, Best Buy's Q4 2025 earnings exceeded analysts' expectations due to strong digital sales, strategic growth initiatives, and operational efficiency. The company's focus on leveraging its digital platform to engage with customers and its commitment to shareholder returns through dividend increases are key takeaways from its earnings report.