Best Buy 2026 Q3 Earnings Revenue Rises 2.4% to $9.67B as Net Income Dives 48.7%

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 strategy had a maximum drawdown of 0.00%, a Sharpe ratio of -0.22, and a volatility of 36.63%.

Revenue

Best Buy's total revenue for 2026 Q3 rose by 2.4% to $9.67 billion, outpacing the $9.45 billion reported in 2025 Q3. Computing and Mobile Phones revenue increased to $4.79 billion (2026 Q3) from $4.77 billion (2025 Q3), while Consumer Electronics saw a marginal gain to $2.55 billion from $2.51 billion. Appliance revenue declined slightly to $1.03 billion from $1.04 billion, and Entertainment revenue dipped to $588 million from $597 million. Services revenue rose to $669 million from $638 million, and the "Other" category dropped to $97 million from $67 million.

Earnings/Net Income

Best Buy’s earnings per share (EPS) fell sharply to $0.67 in 2026 Q3, a 47.2% decline from $1.27 in 2025 Q3. Net income also dropped 48.7% to $140 million, underscoring the company’s profitability challenges despite revenue growth. This decline highlights a significant underperformance in earnings relative to revenue expansion.

Price Action

The stock edged up 0.09% in the latest trading day but faced broader pressure, dropping 6.45% for the week and 6.55% month-to-date.

Post-Earnings Price Action Review

A strategy of purchasing BBY after earnings beats and holding for 30 days yielded a -34.28% return, sharply underperforming the 86.81% benchmark. The approach exhibited a maximum drawdown of 0.00%, a Sharpe ratio of -0.22, and volatility of 36.63%, underscoring its poor risk-adjusted performance.

CEO Commentary

Strategic Priorities and Outlook

CEO Corie Barry emphasized resilience in core categories like computing and services while acknowledging margin pressures. “We are focused on optimizing our omnichannel experience and expanding our smart home offerings,” Barry stated. She noted supply chain challenges but expressed cautious optimism about holiday sales, aligning with FY2026 guidance of $6.25–$6.35 EPS.

Guidance

The company reaffirmed FY2026 EPS guidance of $6.25–$6.35, above the current-year analyst estimate of $6.18. Barry highlighted disciplined cost management and inventory optimization as key drivers for achieving this target.

Additional News

1. Investor Activity: Westerkirk Capital Inc. added 15,900 shares ($1.07 million) in Q2, signaling confidence in Best Buy’s long-term strategy.

2. Insider Sales: CAO Mathew Watson and Chairman Richard Schulze sold shares totaling $1.55 million, reflecting mixed signals from leadership.

3. Dividend Announcement: Best Buy declared a $0.95 quarterly dividend, payable on January 6, 2026, with a payout ratio of 125.83%, raising concerns about sustainability.