Best Buy (NYSE:BBY) Q3 2026 Earnings Call November 25, 2025 08:00 AM ET Company ParticipantsMatt Bilunas - Chief Financial and Strategy OfficerMollie O'Brien - Head of Investor RelationsCorie Barry - CEOJason Bonfig - Chief Customer Product and Fulfillment OfficerConference Call ParticipantsJoe Feldman - AnalystJonathan Matuszewski - AnalystPeter Keith - AnalystGreg Mellick - Equity AnalystSeth Sigman - AnalystSimeon Gutman - Executive Director and Senior Equity AnalystChristopher Horvers - AnalystAnthony C ...

Financial Data and Key Metrics Changes - The company reported third-quarter revenue of $9.7 billion, with an adjusted operating income rate of 4% and adjusted earnings per share increasing by 11% year-over-year to $1.40 [4][24] - Comparable sales growth was 2.7%, exceeding expectations [4][24] - Domestic revenue increased by 2.1% to $8.9 billion, while international revenue rose by 6.1% to $794 million [24][25] Business Line Data and Key Metrics Changes - Strong sales performance was noted in computing, gaming, and mobile phones, with computing achieving its seventh consecutive quarter of positive comps [4][5] - Desktop computers saw nearly 30% year-over-year growth, while gaming demand remained strong for the Nintendo Switch 2 [5][6] - Online revenue increased by 3.5% on a comparable basis, representing 31.8% of domestic revenue [24][25] Market Data and Key Metrics Changes - The domestic gross profit rate decreased by 30 basis points to 23.3%, primarily due to lower product margin rates [25] - International gross profit rate increased by 30 basis points to 22.8%, attributed to favorable supply chain costs [25][26] Company Strategy and Development Direction - The company aims to strengthen its position as a leading omnichannel destination for technology while building new profit streams [9][10] - Strategic priorities include enhancing omnichannel experiences, driving incremental profitability streams through the Best Buy marketplace, and improving operational efficiencies [9][13][17] - The company is focusing on leveraging AI for customer support and product recommendations, aiming to enhance customer experience [18][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming holiday season, highlighting compelling deals and strong marketing efforts [18][22] - The company expects fourth-quarter comparable sales to range from down 1% to up 1%, with an adjusted operating income rate of 4.8%-4.9% [28][29] - Management noted that the high end of the fourth-quarter outlook assumes growth in computing, gaming, and mobile, with improved trends in TVs [22][28] Other Important Information - The company recorded pre-tax non-cash asset impairments of $192 million related to Best Buy Health, which were excluded from adjusted results [27] - Year-to-date, the company returned $802 million to shareholders through dividends and share repurchases [27] Q&A Session Summary Question: Insights on Q4 guidance and expectations - Management indicated that the high end of the Q4 sales guide is similar to previous expectations, with a slight adjustment to the bottom end [31] Question: Product momentum and demand outlook - Management expects continued growth in computing and mobile phones, driven by the need for upgrades and innovation [32][33] Question: Marketplace performance and EBIT impact - The marketplace has onboarded over 1,000 sellers and significantly increased SKUs, with positive early indicators for customer experience [38][39] Question: Loyalty program performance - The loyalty program has over 100 million members, with nearly 8 million paid members, focusing on personalized promotions to drive engagement [41][42] Question: Store investment and future plans - The company plans to continue investing in store aesthetics and exploring smaller format stores to enhance customer experience [44][46] Question: Impact of tariffs on pricing - The effective tariff rate is in the mid-teens, but overall ASP remains flat due to competitive pricing pressures [49][50] Question: Vendor support in labor - Vendor labor support varies by time of year and product launches, with a focus on maintaining customer service quality [52][53]

Core Insights - Best Buy reported higher fiscal third-quarter sales and raised its full-year outlook as consumers continue to spend despite concerns that tariffs costs could diminish discretionary spending [1] Company Summary - Best Buy's fiscal third-quarter sales increased, indicating strong consumer spending [1] - The company has raised its full-year outlook, reflecting confidence in continued consumer expenditure [1] - Concerns regarding tariff costs impacting discretionary spending have not significantly affected sales performance [1]

Core Insights - Best Buy reported third-quarter results that exceeded Wall Street estimates, leading to an increase in its full-year outlook as it approaches the holiday shopping season [1][2] Financial Performance - Same-store sales increased by 2.7% in the third quarter, surpassing the 1.6% expected by analysts [1] - Adjusted earnings per share were $1.40, exceeding the anticipated $1.30, with revenue of $9.67 billion, higher than the expected $9.58 billion [1] - For the full year, same-store sales are now expected to grow between 0.5% and 1.2%, an improvement from the previous forecast of a 1% decline to a 1% increase [2] Sales Breakdown - U.S. same-store sales rose by 2.4%, online same-store sales increased by 3.5%, and international same-store sales jumped by 6.3%, all showing improvement compared to the previous year [2] Future Outlook - Best Buy forecasts revenue between $41.65 billion and $41.95 billion, up from the previous range of $41.1 billion to $41.9 billion, with adjusted earnings per share expected to be between $6.25 and $6.35 [3] - The company anticipates same-store sales growth for the fourth quarter to be in the range of a 1% decline to a 1% increase, with an adjusted operating income rate of 4.8% to 4.9% [4] Strategic Insights - CEO Corie Barry indicated that sales were driven by strong performance in computing, gaming, and mobile phones, attributing growth to innovation and replacement cycles [3][5] - Barry noted that customers are willing to pay more for upgrades to "future-proof" their technology in anticipation of further advancements in AI [5]

Best Buy (BBY) posted third quarter results that beat Wall Street estimates and raised its full-year outlook on Tuesday, setting the stage for the retailer as it heads into the crucial holiday shopping season. The retail chain reported same-store sales rose 2.7% in the third quarter, ahead of the 1.6% expected by analysts, according to Bloomberg data. Adjusted earnings per share came in at $1.40, ahead of the $1.30 expected, on revenue of $9.67 billion, more than the $9.58 billion analysts were looking fo ...

Core Insights - Consumers are beginning to replace electronics purchased during the pandemic, which is contributing to revenue growth for the company [1] Company Summary - The CEO, Corie Barry, highlighted that the trend of replacing pandemic-era electronics is a significant factor driving revenue gains [1]

A Best Buy store in Pinole, California, US, on Monday, Nov. 24, 2025. Best Buy Co. is expected to release earnings figures on November 25.Best Buy hiked its full-year forecast Tuesday, as it topped Wall Street's quarterly sales expectations and customers turned to the retailer to upgrade tech devices and splurge on new computers, gaming consoles and smartphones. The consumer electronics retailer said it now expects revenue of between $41.65 billion to $41.95 billion for the full year, higher than its previo ...

Core Insights - Best Buy Co., Inc. is set to release its third-quarter earnings results on November 25, with analysts expecting earnings of $1.31 per share, an increase from $1.26 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $9.59 billion, compared to $9.45 billion in the previous year [1] - CFO Matt Bilunas indicated that third-quarter comparable sales are expected to reflect a 1.6% growth, aligning with the higher end of the full-year revenue guidance of $41.1 billion to $41.9 billion [2] Analyst Ratings - Telsey Advisory Group analyst Joseph Feldman maintains an Outperform rating with a price target of $90 [5] - JP Morgan analyst Christopher Horvers has an Overweight rating and raised the price target from $89 to $97 [5] - Truist Securities analyst Scot Ciccarelli holds a Hold rating and increased the price target from $72 to $79 [5] - Argus Research analyst Chris Graja maintains a Hold rating [5] - Wedbush analyst Alicia Reese has a Neutral rating and raised the price target from $70 to $75 [5]

We're back on Morning Trade Live. We'll get another look at retail when Best Buy reports earnings before the open tomorrow morning. Analysts are expecting adjusted earnings per share of $131 for the third quarter on revenues of more than $9.5% billion.Best Buy shares are down 10% in 2025. Currently trading 3/10en of a percent lower in this morning's trade ahead of that report card. So, let's go inside out on Best Buy ahead of earnings.And joining us now is Feta Kolinska, founding partner or should I say con ...

Market Overview - Stocks experienced a rally on Friday due to positive comments from the Federal Reserve, but ended the week lower, with the S&P 500 and Dow Jones Industrial Average both declining by 1%, and the Nasdaq Composite dropping 2.15% [2][3] Federal Reserve Insights - New York Fed President John Williams indicated potential for interest rate reductions soon, with the probability of a rate cut in December rising from 30% to nearly 74% following his comments [3][4] Economic Data Impact - Key economic data to monitor includes the Producer Price Index (PPI) and the Personal Consumption Expenditures (PCE) report, both expected to rise by 0.3% month-over-month. The PCE is particularly significant for the Federal Reserve's inflation assessment [6][8] Earnings Reports - Upcoming earnings reports from companies such as Best Buy, Kohl's, Dell, and Deere are anticipated to provide insights into holiday shopping trends and the impact of tariffs on business operations. Dell's report is expected to be closely scrutinized in the context of the AI narrative [8] AI Sector Developments - The AI sector has seen a surge in bond issuance, with hyperscalers like Alphabet, Amazon, Meta Platforms, and Oracle issuing $900 billion in bonds since September, raising concerns about sustaining growth and spending rates in the AI space [9] Technical Indicators - The S&P 500's 50-day moving average is a critical technical level to watch, with recent trading falling below this line. A rally on Friday was noted, but further progress is needed to regain stability [10]