Best Buy (BBY) Q3 2026 earnings

Best Buy, the consumer electronics retailer, has raised its full-year forecast after exceeding Wall Street’s quarterly sales expectations. The company’s strong performance was driven by customers upgrading laptops, purchasing new gaming consoles, and buying smartphones. As a result, Best Buy now expects revenue of between $41.65 billion to $41.95 billion for the full year, up from its previous range of $41.1 billion to $41.9 billion.

The company’s CEO, Corie Barry, attributed the better-than-expected sales to strong results across computing, gaming, and mobile phones, as well as growth in wearables and headphones. She noted that sales rose across both the company’s website and stores, and that customer shopping behavior remained resilient but deal-focused. Barry also stated that customers are willing to spend on high-priced products when they need to or when there is technological innovation.

Strong Quarterly Performance

For the three-month period that ended November 1, Best Buy reported earnings per share of $1.40, adjusted, which beat the expected $1.31. The company’s revenue also exceeded expectations, coming in at $9.67 billion versus the expected $9.59 billion. The strong quarterly performance led to a 5% increase in the company’s shares, which have dropped roughly 7% this year.

Best Buy’s net income for the fiscal third quarter fell to $140 million, or 66 cents per share, from net income of $273 million, or $1.26 per share, in the year-ago period. However, adjusting for one-time items, the company reported earnings of $1.40. Revenue rose from $9.45 billion in the year-ago quarter, and comparable sales increased 2.7% year over year, the company’s highest comparable sales growth in four years.

Preparations for the Holiday Season

As the holiday season approaches, Best Buy is preparing for key sales days like Black Friday and Cyber Monday. The company expects sales trends to decelerate from the previous quarter, with comparable sales ranging from a 1% decline to a 1% increase. Best Buy’s CFO, Matt Bilunas, noted that the company faces tougher year-over-year comparisons and may see waning trends in some categories like gaming and wearables.

Despite the cautious outlook, Best Buy is confident in its ability to drive growth through its various initiatives, including its third-party marketplace, which was launched in mid-August. The marketplace has already shown positive signs, with over 1,000 sellers and 11 times more individual items available for online customers than before. The company is also focusing on providing more reasons for customers to try products, including immersive showcase areas for Meta’s latest AI-enabled glasses and pilot showrooms with Ikea.

Challenges and Opportunities

While Best Buy has seen strong performance in some categories, others, such as appliances, continue to lag. The company’s CFO attributed this to the slower housing market, which has led to more customers replacing individual products rather than buying sets. To address this, Best Buy plans to increase labor in the department, speed up deliveries, and make some items available same day.

Despite the challenges, Best Buy remains optimistic about its prospects, driven by its strong brand reputation, wide range of products, and commitment to providing excellent customer service. As the company looks to the future, it is well-positioned to capitalize on emerging trends and technologies, including the growing demand for AI-enabled devices and the increasing importance of online marketplaces.