Best Buy 2026 Q3 Earnings Beats Revenue Estimates Despite EPS Decline

Best Buy reported fiscal 2026 Q3 earnings on Nov 25, 2025, with revenue growth outpacing expectations but profitability underperforming. The company raised full-year revenue guidance following strong quarterly results.

Revenue

Best Buy’s total revenue rose 2.4% to $9.67 billion, driven by robust performance in computing and mobile phones ($4.77 billion) and consumer electronics ($2.51 billion), while appliances and entertainment segments contributed $1.04 billion and $588 million, respectively. Services revenue reached $669 million, supported by other segments adding $97 million. The domestic market accounted for $8.88 billion, with international revenue up 6.1% to $794 million despite foreign exchange headwinds.

Earnings/Net Income

Earnings per share (EPS) fell 47.2% to $0.67, and net income dropped 48.7% to $140 million compared to the prior year. The decline reflects margin pressures and operational costs, underscoring challenges in maintaining profitability amid revenue growth.

Price Action

The stock gained 3.94% in the latest trading day and 7.07% for the week, though it declined 4.32% month-to-date.

Post-Earnings Price Action Review

A strategy of buying BBY after earnings beats and holding for 30 days underperformed significantly, yielding -35.51% versus a benchmark return of 80.96%. While the approach showed no capital loss (0.00% maximum drawdown), it lagged with a Sharpe ratio of -0.23 and a CAGR of -8.45%.

CEO Commentary

CEO Corie Barry highlighted growth in computing, gaming, and mobile phones, while acknowledging challenges in home theater and appliances. Strategic priorities include expanding omnichannel experiences, leveraging partnerships (e.g., Meta, IKEA), and scaling the Best Buy Marketplace. The company remains optimistic about the holiday season, emphasizing innovation and customer focus.

Guidance

For Q4, Best Buy expects comp sales to decline 1% to rise 1%, with an operating income rate of 4.8%–4.9%. Full-year revenue is projected at $41.65 billion–$41.95 billion, and adjusted EPS at $6.25–$6.35.

Additional News

Insider trading activity saw executives selling shares, with Richard Schulze disposing of $194 million worth of stock. Institutional investors showed mixed sentiment, with AQR Capital and UBS increasing holdings while Amundi and D. E. Shaw reduced stakes. Best Buy’s 5% dividend yield and recent price target upgrades (e.g., UBS at $93) highlight its appeal to income-focused investors.