Best Buy (NYSE:BBY) Posts Earnings Results, Beats Estimates By $0.13 EPS

Best Buy (NYSE:BBY) posted its earnings results on Tuesday. The technology retailer reported $2.61 earnings per share for the quarter, topping the consensus estimate of $2.48 by $0.13, FiscalAI reports. Best Buy had a return on equity of 50.02% and a net margin of 1.54%.The firm had revenue of $13.81 billion during the quarter, compared to analyst estimates of $13.96 billion. During the same period in the previous year, the company earned $2.58 EPS. The company’s revenue for the quarter was down 1.0% on a year-over-year basis. Best Buy updated its FY 2027 guidance to 6.300-6.600 EPS.

Here are the key takeaways from Best Buy’s conference call:

• Best Buy beat profitability expectations in Q4 with an adjusted operating income rate of 5% and adjusted EPS of $2.61, and returned $1.1 billion to shareholders while raising the quarterly dividend.
• Enterprise comparable sales declined 0.8% (revenue down 1%) in Q4, with holiday softness in November/early December and notable category weakness in home theater and appliances.
• Best Buy Ads and Marketplace are scaling: Marketplace GMV was ~ $300M in Q4, Ads collections exceeded $900M for the year, and management expects both to contribute to gross profit and margin expansion over time.
• Fiscal 2027 guidance calls for revenue of $41.2B–$42.1B, comparable sales of -1% to +1%, adjusted OI rate ~4.3%–4.4% and EPS $6.30–$6.60, reflecting continued investment in Ads/Marketplace and a mixed macro outlook.
• The company flagged memory-related cost inflation and supply uncertainty (especially in computing) as a key risk that could pressure unit sales or product margins, and is pursuing inventory, vendor and assortment strategies to mitigate it.

Best Buy Price Performance

NYSE:BBY opened at $65.95 on Wednesday. The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.26 and a current ratio of 1.05. The company has a 50-day moving average of $66.83 and a 200-day moving average of $72.90. Best Buy has a 52 week low of $54.99 and a 52 week high of $84.99. The company has a market capitalization of $13.82 billion, a price-to-earnings ratio of 21.84, a PEG ratio of 1.47 and a beta of 1.46.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in BBY. Great Valley Advisor Group Inc. bought a new position in shares of Best Buy during the second quarter valued at $505,000. Hudson Bay Capital Management LP bought a new position in Best Buy during the 2nd quarter valued at about $244,000. Lazard Asset Management LLC raised its stake in shares of Best Buy by 495.2% in the second quarter. Lazard Asset Management LLC now owns 11,326 shares of the technology retailer’s stock valued at $760,000 after acquiring an additional 9,423 shares during the last quarter. Meiji Yasuda Asset Management Co Ltd. boosted its holdings in shares of Best Buy by 8.6% in the 2nd quarter. Meiji Yasuda Asset Management Co Ltd. now owns 151,211 shares of the technology retailer’s stock worth $10,151,000 after acquiring an additional 12,010 shares in the last quarter. Finally, Geneos Wealth Management Inc. grew its position in Best Buy by 30.0% during the 2nd quarter. Geneos Wealth Management Inc. now owns 1,466 shares of the technology retailer’s stock worth $98,000 after acquiring an additional 338 shares during the last quarter. Institutional investors own 80.96% of the company’s stock.

Key Stories Impacting Best Buy

Here are the key news stories impacting Best Buy this week:

• Positive Sentiment: EPS beat and profit resilience — Best Buy reported adjusted EPS of $2.61, above estimates, and highlighted margin improvement that reassured investors despite weaker sales; this beat is a primary driver of the rally. Best Buy (NYSE:BBY) Misses Q4 CY2025 Revenue Estimates, But Stock Soars 13.3%
• Positive Sentiment: Leaner cost structure boosting profits — Management pointed to operating efficiencies and lower costs that helped lift profitability even as top-line softness continued, a theme analysts credited for the post-earnings move. Best Buy’s Leaner Cost Structure Drives Post-Earnings Rally
• Positive Sentiment: Company narrative on digital/AI and services — Management emphasized investment in digital experiences and AI-enabled services as a way to drive higher-margin sales and customer engagement, which calms some investor concerns about secular competitiveness. Best Buy Bets on AI as Consumers Avoid Big-Ticket Items
• Neutral Sentiment: Revenue and comparable-sales weakness — Q4 revenue missed consensus (about $13.81B vs. ~$13.96B expected) and same-store sales fell modestly, signaling continued demand pressure even as EPS outperformed. Best Buy Reports Fourth Quarter Results
• Neutral Sentiment: Mixed analyst commentary — Some outlets framed the print as a clean beat on profits but called the overall picture mixed due to soft holiday sales and cautious tone from management; these balanced takes leave near-term sentiment sensitive to guidance details. Best Buy Is Today’s Top S&P 500 Stock. Why Weak Guidance Doesn’t Matter.
• Negative Sentiment: Weak forward guidance on sales — Best Buy issued FY2027 guidance below Street revenue expectations and signaled tepid growth as consumers hunt for value, a key negative that tempers the EPS beat. Best Buy forecasts annual sales below estimates
• Negative Sentiment: Sell-side downgrade and structural concerns — A noted downgrade argued Best Buy lacks differentiation and has e-commerce vulnerabilities versus larger rivals, raising the risk that profits could be cyclical rather than secular. Best Buy: No Compelling Reason To Own (Rating Downgrade)

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. Jefferies Financial Group decreased their price target on shares of Best Buy from $94.00 to $89.00 and set a “buy” rating for the company in a report on Monday, February 9th. Telsey Advisory Group restated an “outperform” rating and set a $95.00 target price on shares of Best Buy in a research note on Tuesday, February 24th. Guggenheim reaffirmed a “buy” rating and issued a $90.00 price target on shares of Best Buy in a research report on Wednesday, November 26th. Barclays cut their price target on Best Buy from $81.00 to $77.00 and set an “equal weight” rating for the company in a report on Thursday, January 8th. Finally, Truist Financial set a $66.00 price objective on shares of Best Buy in a research note on Tuesday. Seven research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $79.70.

Best Buy Company Profile

Best Buy Co, Inc is a leading North American consumer electronics retailer that sells a broad range of products including computers, mobile phones, televisions and home theater systems, major appliances, smart-home devices, gaming hardware and software, wearables and related accessories. The company operates through a mix of large-format stores, smaller specialty locations and an e-commerce platform, offering national and private-brand merchandise from major consumer-technology manufacturers as well as third-party sellers.

Beyond product retailing, Best Buy provides a suite of services aimed at installation, repair and ongoing technical support.