Best Buy Beats on Earnings, Raises 2026 Guidance Despite Q3 Profit Slump

Best Buy (BBY) delivered mixed Q3 results: profit cratered 49% YoY to $140M, but adjusted EPS came in at $1.40—crushing analyst expectations of $1.31. Revenue climbed 2.4% to $9.67B, also topping the $9.59B consensus.

Here’s the kicker: management hiked fiscal 2026 guidance significantly.

FY26 Outlook Update:

• Adjusted EPS now $6.25-$6.35 (up from $6.15-$6.30)
• Revenue guidance: $41.65B-$41.95B (vs prior $41.1B-$41.9B)
• Comparable sales growth: +0.5% to +1.2% (flipped from -1.0% to +1.0%)
• Operating margin: ~4.2%

Q4 Guidance:

• Comp sales: flat to +1.0%
• Operating margin: 4.8%-4.9%

Bonus: board approved $0.95/share quarterly dividend (payable Jan 6). Stock down ~1.3% in premarket despite the beat, currently around $74.64.