TLDR

  • Best Buy (BBY) exceeded fourth-quarter adjusted EPS expectations, reporting $2.61 compared to the analyst consensus of $2.47—driving a nearly 12% jump in the stock during premarket trading.
  • Quarterly revenue totaled $13.81 billion, a 1% year-over-year decline and slightly under the $13.87 billion consensus forecast.
  • Same-store sales dropped by 0.8%, falling short of the anticipated 0.1% increase.
  • The company’s full-year outlook came in below analyst projections: adjusted EPS is expected to range from $6.30 to $6.60 (vs. the consensus $6.66), and same-store sales are projected to be between -1% and +1% (vs. the expected +1.63%).
  • Best Buy increased its quarterly dividend by one cent to $0.96 per share, making it the highest-yielding component in the Consumer Discretionary Select Sector SPDR ETF.

On Tuesday, Best Buy (BBY) released its fiscal fourth-quarter results, delivering a profit that caught Wall Street off guard—despite revenue and its full-year outlook coming in below expectations.

Following the result release, the stock surged up to 11.8% in premarket trading, bouncing back from an 11-month low reached the previous day.

BBY Stock Card

On Monday, BBY closed down 0.6% at $61.59, ending a four-month slump that resulted in a nearly 25% drop. By Tuesday, market expectations were already extremely low.

Adjusted EPS stood at $2.61, an increase from $2.58 the prior year and significantly above analyst estimates of $2.46 to $2.47. This beat provided the catalyst the stock needed.

For the quarter ending January 31, revenue totaled $13.81 billion—1% lower than the previous year and marginally below the $13.87 billion consensus.

Same-store sales decreased by 0.8%, failing to meet the forecasted 0.1% rise. While this is a miss, it’s not catastrophic given the current market environment.

CEO Corie Barry pointed out that the company’s overall market share remained at least steady during the holiday quarter, even as consumer demand weakened across the electronics retail sector.

Cost of goods sold was $10.93 billion, down from $11.03 billion the previous year—indicating the company is effectively controlling its costs.

Barry also highlighted that full-year same-store sales returned to growth for the first time in three years, and Best Buy’s advertising segment had a strong performance.

Full-Year Guidance Misses the Mark

Best Buy provided full-year revenue guidance of $41.2 billion to $42.1 billion, versus the consensus of $42.2 billion. Same-store sales are projected to be between -1% and +1%, which is below the analyst estimate of 1.4% growth.

Adjusted EPS guidance of $6.30 to $6.60 also fell short of the consensus range of $6.63 to $6.66.

CFRA Research analyst Ana Garcia described the quarter as a display of “operational resilience,” while noting “growing headwinds” as the company enters fiscal 2027.

Evercore ISI’s Greg Melich offered a more balanced perspective, stating that the guidance “indicates moderate growth with overall demand returning to normal—something that was better than what many had feared.”

Prior to the report, Wedbush’s Matthew McCartney had noted that low expectations were already priced into the stock, and there was little to reignite investor interest. However, the earnings beat provided the market with a positive catalyst.

Dividend Gets a Small Boost

Best Buy increased its quarterly dividend by one cent to $0.96 per share. Using Monday’s closing price, this translates to an annual yield of 6.23%.

This makes it the highest-yielding stock in the Consumer Discretionary Select Sector SPDR ETF—over five times the implied yield of the S&P 500, which stands at 1.16%.

Best Buy attributed its cautious full-year outlook to a “mixed macroeconomic environment,” noting that consumers are facing pressure from tariff-driven cost hikes and an unstable labor market.

Over the 12 months leading up to Monday, BBY’s stock has declined by 29%, whereas the S&P 500 has risen by 17.6% during the same timeframe.

Fourth-quarter adjusted EPS of $2.61 exceeded the $2.46 estimate, while full-year EPS guidance of $6.30 to $6.60 fell short of the $6.63 consensus.