Best Buy 2026 Q3 Earnings Revenue Rises 2.4% Amid EPS Drop

Best Buy (BBY) reported fiscal 2026 Q3 earnings on Nov 25, 2025, with revenue growth outpacing expectations while profitability metrics declined. The company raised full-year revenue guidance to $41.65–$41.95 billion, reflecting confidence in holiday demand despite EPS and net income contraction.

Revenue

Total revenue rose 2.4% to $9.67 billion, driven by strong performance in computing and mobile phones ($4.77 billion) and consumer electronics ($2.51 billion). Appliance sales ($1.04 billion) and entertainment ($588 million) lagged, while services ($669 million) and other categories ($97 million) contributed smaller gains. The computing segment’s 7.07% weekly stock price surge underscored its resilience amid a PC replacement cycle.

Earnings/Net Income

Best Buy’s EPS plummeted 47.2% to $0.67, and net income fell 48.7% to $140 million. The sharp decline reflected margin pressures from promotions and higher product costs, though the company maintained a 4.0% adjusted operating income rate. The earnings miss highlighted challenges in balancing growth with profitability.

Post-Earnings Price Action Review

A strategy of buying BBY after earnings beats and holding for 30 days underperformed significantly, with a -35.51% return versus the benchmark’s 80.96%. The approach showed no capital loss (0.00% drawdown) but suffered a Sharpe ratio of -0.23 and CAGR of -8.45%, underscoring market skepticism despite revenue gains.

CEO Commentary

CEO Corie Barry emphasized resilience in computing and gaming, noting “seven consecutive quarters of positive comps” and strategic investments in AI-driven omnichannel experiences. She highlighted the Best Buy Marketplace’s expansion (1,000+ sellers, 11x SKUs) and optimism for the holiday season, though acknowledged declines in home theater and appliances.

Guidance

CFO Matthew Bilunas projected Q4 revenue of $41.65–$41.95 billion, with comparable sales growth of 0.5%–1.2% and adjusted EPS of $6.25–$6.35. The company expects gross profit margin pressure from promotions but long-term benefits from marketplace scaling. Capital expenditures remain at ~$700 million.

Additional News

Best Buy’s institutional ownership saw mixed activity, with AQR Capital and UBS increasing holdings by ~$264 million and $146 million, respectively. Conversely, Amundi and D. E. Shaw reduced stakes by ~$119 million and $103 million. Analysts issued conflicting ratings: Telsey Advisory Group and JP Morgan upgraded to “Outperform” and “Overweight,” while B of A Securities downgraded to “Underperform.” The stock’s 5.0% dividend yield and 11.6x forward P/E drew attention from income-focused investors.

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