Best Buy Q3 2026 Earnings 48.7% Net Income Drop Despite 2.4% Revenue Growth

Best Buy (BBY) reported fiscal 2026 Q3 earnings on Dec 5, 2025, with revenue rising 2.4% year-over-year to $9.67 billion but net income plunging 48.7% to $140 million. The company set FY2026 guidance at $6.250–$6.350 EPS, above the current year’s $6.18 estimate, signaling cautious optimism for future performance.

Revenue

Total revenue reached $9.67 billion in 2026 Q3, driven by Computing and Mobile Phones ($4.79 billion) and a marginal increase in Consumer Electronics ($2.55 billion). Appliance sales remained stable at $1.03 billion, while the Services segment grew to $669 million. Entertainment revenue dipped slightly to $588 million, and the Other category contributed $97 million.

Earnings/Net Income

Best Buy’s EPS fell 47.2% to $0.67 in 2026 Q3 from $1.27 in 2025 Q3. Net income dropped to $140 million, down 48.7% from $273 million. The sharp decline in EPS and net income highlights challenges in profitability despite revenue growth.

Price Action

The stock edged up 0.09% on the latest trading day but declined 6.45% for the week and 6.55% month-to-date.

Post-Earnings Price Action Review

The strategy of buying BBY when earnings beat and holding for 30 days resulted in a -33.92% return, significantly underperforming the benchmark of 85.52%. While the strategy avoided losses (0.00% maximum drawdown), its high volatility (36.65%) and negative Sharpe ratio (-0.22) underscore inconsistent performance relative to the benchmark.

Additional News

Westerkirk Capital Inc. invested $1.07 million in Best Buy, acquiring 15,900 shares in Q2 2025. Institutional investors, including True Wealth Design LLC and Bogart Wealth LLC, significantly increased stakes, with the latter boosting its position by 202%. Best Buy also announced a $0.95 quarterly dividend, yielding 5.1%, despite a payout ratio of 125.83%.