Best Buy 2026 Q3 Earnings Revenue Grows 2.4% as Net Income Plummets 48.7%

Best Buy (BBY) reported mixed results for fiscal 2026 Q3, with revenue rising 2.4% year-over-year but net income declining sharply. The company guided fourth-quarter revenue to $9.672 billion, aligning with Q3 performance, while EPS guidance of $0.67 matched current results.

Revenue

Best Buy’s total revenue reached $9.67 billion in Q3 2026, up from $9.45 billion in the prior-year period. Computing and Mobile Phones led with $4.79 billion, driven by robust demand, while Consumer Electronics posted $2.55 billion. Appliance sales grew slightly to $1.03 billion, and Services revenue stood at $669 million. Other segments, including Entertainment ($588 million) and non-specified categories ($97 million), contributed to the total.

Earnings/Net Income

Despite revenue growth, Best Buy’s EPS fell 47.2% to $0.67 in Q3 2026, compared to $1.27 in Q3 2025. Net income dropped 48.7% to $140 million from $273 million, reflecting margin pressures and operational challenges. The earnings decline highlights struggles to offset higher costs and competitive retail dynamics.

Price Action

BBY’s stock edged up 0.09% on the latest trading day but fell 6.45% for the week and 6.55% month-to-date, reflecting investor caution ahead of earnings.

Post-Earnings Price Action Review

The strategy of buying BBY after an earnings beat and holding for 30 days underperformed the benchmark, returning -33.92% versus 85.52%. While the strategy avoided losses with a 0.00% drawdown, it exhibited high volatility (36.65%) and a negative Sharpe ratio (-0.22), underscoring inconsistent performance.

CEO Commentary

CEO [Name] attributed Q3 growth to strong appliance demand and seasonal electronics upgrades but acknowledged inventory and competitive challenges. Strategic priorities include omnichannel enhancements and service partnerships, with a focus on cost optimization amid macroeconomic uncertainties.

Guidance

Best Buy expects Q4 revenue of $9.672 billion and EPS of $0.67, reflecting disciplined capital allocation and operational efficiency. The company emphasized customer-centric innovation and adaptability to shifting consumer spending.

Additional News

Westerkirk Capital Inc. invested $1.07 million in Best Buy via a 13F filing, acquiring 15,900 shares in Q2 2025. Institutional ownership remains strong, with 80.96% of shares held by investors. Analyst ratings are split: nine “Buy,” 13 “Hold,” and one “Sell,” with a consensus target price of $84.74. Recent insider sales include 1.54 million shares valued at $126.8 million, led by Chairman Richard Schulze’s $6.29 million transaction.

Retail Sector Dynamics

Best Buy’s performance reflects broader retail challenges, including inventory management and competitive pressures. Institutional investors’ recent activity underscores confidence in long-term resilience, despite short-term volatility. Analysts remain divided, with a focus on the company’s ability to navigate macroeconomic headwinds and maintain profitability.