Best Buy's earnings report exceeds expectations, causing the stock price to soar

LootboxPhobia · 2026-03-03T12:53:50+00:00

Best Buy announces Q4 earnings, with adjusted EPS of $2.61 beating expectations, and revenue of $13.81 billion below forecasts. The company’s guidance for the upcoming fiscal year falls short of analyst expectations, with an estimated 1% same-store sales growth in the first quarter. Shares rose 14.1% after the earnings report.

LootboxPhobia

2026-03-03 12:53:50

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Investing.com - Best Buy Co., Inc. (NYSE: BBY) stock surged in pre-market trading on Tuesday after the company announced its Q4 earnings report.

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The retailer reported adjusted Q4 earnings of $2.61 per share, beating analyst expectations of $2.47 by $0.14. However, revenue was $13.81 billion, below the market forecast of $13.91 billion, down 1% from $13.95 billion last year. Comparable sales declined 0.8% for the quarter.

The company issued guidance for fiscal 2027, with adjusted earnings per share expected to be between $6.30 and $6.60, with a midpoint of $6.45, below analyst expectations of $6.65. Revenue guidance is between $41.2 billion and $42.1 billion, with a midpoint of $41.65 billion, also below the market estimate of $42.2 billion.

For the first quarter, Best Buy expects comparable sales to grow about 1%, with an adjusted operating profit margin of approximately 3.9%. Shares jumped 14.1% after the earnings release.

“We are pleased that our profitability in the fourth quarter exceeded expectations,” said CEO Corie Barry. “While our comparable sales are within the guidance range, they declined 0.8% compared to last year. Our data indicates that our overall market share is at least stable, suggesting that customer demand in our industry was somewhat soft during the holiday quarter.”

The company’s domestic revenue was $12.58 billion, down 1.1% year-over-year, with the largest declines in home theater and appliance categories, though growth in computers and mobile phones offset this decline. Domestic gross margin was 20.9%, roughly flat, as growth in Best Buy Ads and Marketplace offset lower product profit margins.

In fiscal 2026, Best Buy’s comparable sales are expected to return to positive growth of 0.5%, with expanded operating profit margins. The board approved a 1% dividend increase to $0.96 per share, payable on April 14, 2026.

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