Best Buy Co., Inc. (NYSE: BBY) is navigating a challenging retail backdrop, marked by cautious consumer spending and tariff-related cost pressure. The consumer electronics retailer’s upcoming earnings report is expected to shed light on seasonal demand patterns and broader macroeconomic pressures as the company enters the pivotal holiday quarter. Although management remains upbeat about the second half, new import tariffs have cast uncertainty over its turnaround plan.
Estimates
Best Buy is expected to report financial data for the third quarter of FY26 on Tuesday, November 25, at 7:00 am ET. As per market watchers’ consensus forecast, the company is expected to report earnings of $1.31 per share, on an adjusted basis, compared to $1.26 per share in the corresponding quarter of fiscal 2025. It is estimated that revenues rose about 1.5% YoY to $9.59 billion in the October quarter.
The company has regularly raised its dividend, and currently offers a bigger-than-average yield of 5.1%. The average price of Best Buy shares over the past 12 months is $76.23, slightly higher than the last closing price. After retreating from an eight-month high a couple of weeks ago, the stock has shown continued weakness – the momentum may remain subdued ahead of next week’s earnings report.
Results Beat
In Q2 FY26, Best Buy’s enterprise revenue moved up to $9.4 billion from $9.2 billion in the corresponding period of fiscal 2025. Comparable sales were up 1.6%. International revenue jumped 11% YoY while domestic revenue remained broadly unchanged during the quarter. Q2 net income was $186 million or $0.87 per share, compared to $291 million or $1.34 per share last year. Adjusted earnings declined 4% annually to $1.28 per share.
From Best Buy’s Q2 2026 Earnings Call:
“Given the uncertainty of potential tariff impacts in the back half, both on consumers overall as well as our business, we feel it is prudent to maintain the annual guidance we provided last quarter. At this point, we do believe we are trending toward the higher end of our sales range. I am pleased with the progress we are making on our fiscal ’26 strategy. As a reminder, our strategy is to continue to strengthen our position in retail as a leading omnichannel destination for technology, while at the same time, building and scaling new profit streams that we believe will drive returns in the future.”
Outlook
Second-quarter revenue and earnings came in above Wall Street’s expectations, marking the third consecutive quarterly outperformance. The management said it expects FY26 revenue to be in the range of $41.1 billion to 41.9 billion, and comparable sales to be down 1% to up 1%. The forecast for full-year adjusted earnings is between $6.15 per share and 6.30 per share.
The company is actively expanding its online footprint — earlier this year, it launched the Best Buy Marketplace, with a significant increase in the number of products available online and additional brands. Meanwhile, continued softness in discretionary spending and increasing competition remain a challenge.
On Monday, BBY opened at $75.51 and dropped in early trading. The stock has declined about 6% in the past 30 days, with most of the loss coming in the last two weeks.
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