TLDR
- Best Buy increased fiscal 2026 sales outlook to 0.5%-1.2% growth from previous -1% to 1% range
- Q3 comparable sales rose 2.7%, surpassing analyst expectations of 1.62%
- Computing, tablets, and gaming categories posted strong gains as consumers replaced older devices
- Company raised earnings guidance to $6.25-$6.35 per share from $6.15-$6.30
- Stock climbed 3% in premarket trading after results announcement
Best Buy delivered better-than-expected third-quarter results and raised its full-year outlook on Tuesday. The move signals growing confidence as holiday shoppers snap up electronics despite broader retail uncertainty.
The company now projects fiscal 2026 comparable sales will grow 0.5% to 1.2%. That’s a clear upgrade from its previous forecast, which ranged from a 1% decline to 1% growth.
For the quarter ending November 1, comparable sales increased 2.7%. Wall Street analysts had predicted just a 1.62% gain.
Investors responded positively. Shares jumped 3% in premarket trading.
What’s Driving Sales Growth
Computing and tablets carried the quarter. These products make up about one-third of Best Buy’s revenue.
Shoppers are upgrading laptops and tablets purchased during the pandemic. New technology releases are also pulling consumers into stores and online.
Gaming added fuel to the fire. Nintendo’s Switch 2 launch earlier in 2025 created fresh demand in the category.
Best Buy launched a U.S. marketplace in August. The platform expands product selection and helps the retailer compete with Amazon and other e-commerce giants.
Digital sales rose 3.5% domestically. International same-store sales climbed even higher at 6.3%.
Managing Costs and Competition
Best Buy is using several tactics to handle tariff pressures. Manufacturing flexibility, supplier negotiations, and diversified supply chains help protect margins.
The retailer’s results stand out against mixed performance from competitors. Walmart reported strength in grocery and essentials. Target cautioned about softer holiday spending patterns. Home Depot struggled with weak housing market conditions.
Best Buy’s improved earnings outlook reflects the stronger sales trend. The company raised its adjusted earnings per share forecast to $6.25-$6.35. Previous guidance was $6.15-$6.30.
Holiday Shopping Trends
Shoppers are hunting for deals on smartphones, laptops, and home electronics. Deep discounts are motivating purchases as consumers refresh their tech.
The retailer benefits from customers replacing aging pandemic purchases. Many devices bought in 2020 and 2021 are now outdated or worn out.
Best Buy’s online expansion helps capture more of this demand. The new marketplace broadens selection beyond traditional electronics into adjacent categories.
The company’s third-quarter performance beat expectations across key metrics. Comparable sales, online growth, and international results all exceeded forecasts. Earnings guidance increased to reflect the positive momentum heading into the critical holiday shopping period.
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