Best Buy 2026 Q3 Earnings Net Income Drops 48.7% as Earnings Fall Short of Expectations

Best Buy (BBY) reported fiscal 2026 Q3 earnings on December 5, 2025, with revenue rising 2.4% year-over-year but earnings per share (EPS) declining sharply. The company beat revenue estimates but missed EPS guidance, signaling mixed performance in a competitive retail landscape.

Revenue

Best Buy’s total revenue increased to $9.67 billion in Q3 2026, driven by Computing and Mobile Phones ($4.77 billion) and Consumer Electronics ($2.55 billion). Appliance sales grew slightly to $1.03 billion, while Services revenue rose to $669 million. Entertainment and Other segments reported $588 million and $97 million, respectively. The performance highlights resilience in core tech categories but underscores margin pressures in lower-margin offerings.

Earnings/Net Income

The company’s EPS plummeted 47.2% to $0.67 in Q3 2026, compared to $1.27 in Q3 2025. Net income fell to $140 million, a 48.7% decline from $273 million the prior year. The drop in profitability reflects higher operational costs and competitive pricing pressures. The significant EPS contraction indicates a challenging earnings trajectory relative to historical performance.

Price Action

BBY’s stock edged up 0.09% in the latest trading day but declined 6.45% for the week and 6.55% month-to-date. The post-earnings price action suggests investor skepticism despite revenue growth.

Post-Earnings Price Action Review

The strategy of buying BBY when earnings beat and holding for 30 days resulted in a -34.28% return, significantly underperforming the benchmark return of 86.81%. The approach exhibited a Sharpe ratio of -0.22, a volatility of 36.63%, and a maximum drawdown of 0.00%.

CEO Commentary

CEO Corie Barry emphasized, “We remain focused on driving growth in high-potential categories like Computing and Mobile Phones while optimizing costs.” He acknowledged margin challenges but expressed confidence in long-term market positioning. Strategic priorities include expanding Best Buy’s private-label offerings and enhancing online customer engagement. Barry’s tone balanced caution with optimism, highlighting “a strong foundation to navigate macroeconomic headwinds.”

Guidance

Best Buy provided FY 2026 EPS guidance of $6.25–$6.35, exceeding analysts’ $6.18 consensus. The company expects revenue growth to stabilize in key segments, with continued investment in digital transformation and inventory management.

Additional News

Westerkirk Capital Inc. invested $1.07 million in Best Buy, acquiring 15,900 shares in Q2 2025. Analysts updated ratings: Guggenheim reaffirmed a “Buy” with a $90 target, while Wedbush maintained “Neutral.” The company also announced a quarterly dividend of $0.95, yielding 5.1%, though insiders sold 1.5 million shares valued at $126.8 million in Q3.

Best Buy’s Q3 results highlight revenue resilience amid broader retail challenges, with strategic bets on tech innovation and cost discipline shaping future performance.