Best Buy 2026 Q3 Earnings Revenue Grows but Net Income Falls 48.7%

Best Buy Co., Inc. (BBY) reported fiscal 2026 Q3 earnings on Dec 5, 2025, with revenue rising 2.4% year-over-year but net income declining sharply. The company exceeded revenue expectations and provided updated FY2026 guidance, though earnings per share (EPS) fell significantly compared to the prior year.

Revenue

Total revenue grew to $9.67 billion in 2026 Q3, a 2.4% increase from $9.45 billion in 2025 Q3. Computing and Mobile Phones led the performance with $4.77 billion, followed by Consumer Electronics at $2.55 billion. Appliance sales reached $1.03 billion, while Services revenue totaled $669 million. Other segments, including Entertainment ($588 million) and unallocated revenue ($97 million), also contributed to the overall growth.

Earnings/Net Income

Best Buy’s EPS plummeted 47.2% to $0.67 in 2026 Q3 from $1.27 in 2025 Q3. Net income fell to $140 million, a 48.7% decline from $273 million a year earlier. The sharp drop in profitability highlights margin pressures despite revenue expansion.

Price Action

The stock edged up 0.09% on the latest trading day but declined 6.45% weekly and 6.55% month-to-date, reflecting mixed investor sentiment post-earnings.

Post-Earnings Price Action Review

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

CEO Commentary

President and CEO Corie Barry emphasized operational improvements and customer-focused initiatives to drive long-term growth.

Guidance

Best Buy provided FY2026 EPS guidance of $6.25–$6.35, slightly above analysts’ expectations of $6.18, signaling cautious optimism for the remainder of the fiscal year.

Additional News

Westerkirk Capital Inc. increased its stake in Best Buy, acquiring 15,900 shares ($1.07 million) in Q2 2025, per its 13F filing. The company also announced a quarterly dividend of $0.95 per share, payable Jan 6, 2026, with a payout ratio of 125.83%. Meanwhile, insider sales totaled $126.8 million in the last quarter, including shares sold by CEO Corie Barry and Chairman Richard Schulze.