Best Buy (BBY) Q4 2026 earnings

Best Buy The retailer reported mixed results on Tuesday as holiday quarter sales fell and fell short of Wall Street expectations, but its earnings beat estimates as it showed profitability improving.

The consumer electronics retailer expects its revenue for the current fiscal year to range between $41.2 billion and $42.1 billion, compared to $41.69 billion in the last fiscal year. It expects adjusted earnings per share to range between $6.30 and $6.60, after reporting adjusted earnings per share of $6.43 for the previous fiscal year.

Best Buy predicts comparable sales, a metric that tracks sales online and at stores open at least 14 months, will range from a 1% decline to a 1% increase.

In a press release, CEO Corie Barry said demand for consumer electronics remains weak during the gift-giving season, but the company’s internal data shows Best Buy’s market share in the industry is “at least stable.”

Chief Financial Officer Matt Bilunas said in his own statement that the company was “thrilled with the momentum in our business.” But he added that company leaders “expect to continue to navigate the mixed macro environment.”

Best Buy shares closed up more than 7% on Tuesday.

Here’s how the retailer performed in the fourth fiscal quarter compared to Wall Street expectations, according to a survey of LSEG analysts:

• earnings per share: US$2.61 vs expected US$2.47
• Revenues: $13.81 billion, expected $13.88 billion

Best Buy’s net income for the three months ended Jan. 31 rose to $541 million, or $2.56 per share, from $117 million, or 54 cents per share, in the same quarter a year ago. Best Buy reported adjusted earnings per share of $2.61, excluding one-time expenses, including expenses related to its healthcare business.

Revenue was down from $13.95 billion in the prior-year quarter. However, on an annual basis, revenue increased to $41.69 billion from $41.53 billion in the previous fiscal year. Best Buy’s annual revenue has declined over the previous three fiscal years.

For nearly four years, Best Buy has attributed its slowing sales to more price-sensitive U.S. consumers, a slower housing market and less technological innovation. All of these factors have caused some customers to postpone technology purchases, especially high-priced items like new refrigerators.

In a call with reporters, Barry said the company continues to see consistent behavior from both high-income and low-income groups. While he said Best Buy is seeing some softness in higher-priced product sales, the other end of its customer base is “resilient” and “deal-oriented.”

More than half of Best Buy’s customer base is in the $100,000 or higher income bracket, he added.

“I think it’s important to know that where we’re seeing innovation, where there’s a little bit more innovation, people are willing to step up to higher price points across income brackets,” Barry said on the call.

Since most consumer electronics are imported, higher tariffs also increased costs for Best Buy. Barry said the company’s “last resort” was to raise prices and instead focused on diversifying its supply chain and negotiating costs with vendors.

Comparable sales fell 0.8% in the fourth quarter as the company saw declines in white goods and home theater sales. These declines were partially offset by increased sales of computers and mobile phones, the company said.

Best Buy has pivoted to more profitable businesses, including selling ads and offering more products through its third-party marketplace, which launched in August. Best Buy’s advertising partners have nearly doubled from the previous year, and the retailer has significantly increased the number of products available in the marketplace, Barry said in the company’s press release.