Consumers Are Upgrading Tech And Best Buy Is Winning

Best Buy Co Inc (BBY) shares are trading higher after the company reported third-quarter 2026 earnings.

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Sales increased 2.4% year over year (Y/Y) to $9.67 billion, beating the consensus of $9.59 billion.

Best Buy's (BBY) third-quarter comparable sales increased 2.7% Y/Y.

Adjusted earnings of $1.40 per share, beating the consensus of $1.31.

In the third quarter, Best Buy Health recorded $192 million in pre-tax non-cash impairments, including $171 million of goodwill/intangibles and $21 million of long-lived assets, reflecting revised projections amid pressures in the Medicaid and Medicare Advantage markets.

Also Read: Best Buy (BBY) Q3 Earnings: ?Hidden' Ad Revenue, Hardware Margin Squeeze And More? What Should Investors Expect This Time?

Segment Performance

Domestic revenue of $8.88 billion increased 2.1% Y/Y, primarily driven by comparable sales growth of 2.4% Y/Y.

Gaming, computing, and mobile phones were the largest drivers of the comparable sales increase on a weighted basis. Declines in home theater and appliances partially offset these drivers.

Domestic online revenue rose 3.5% Y/Y on a comparable basis to $2.82 billion, representing 31.8% of total Domestic revenue.

Domestic gross profit margin contracted to 23.3% from 23.6% last year, on lower product margins.

Also, International revenue rose 6.1% Y/Y to $794 million, led by 6.3% Y/Y comparable sales growth and Best Buy Express revenues.

Management Commentary

Corie Barry, Best Buy (BBY) CEO, added, "We delivered sales growth across both online and stores, saw continued improvements in customer experience ratings and launched our Best Buy Marketplace."

"We are flexing the unique strength of our model as customers need to upgrade or replace their consumer electronics and new products and innovation are coming to market,"

Dividend & Buyback

In the third quarter, the company returned $234 million to shareholders through $199 million in dividends and $35 million in share repurchases.

The company expects to buy back shares worth around $300 million in FY26.

The board disclosed a quarterly dividend of $0.95 per share, payable January 6, 2026, to shareholders of record as on December 16, 2025.

Outlook

Best Buy Co. (BBY) raised its fiscal 2026 guidance, now projecting adjusted EPS of $6.25?$6.35 (previously $6.15?$6.30) versus $6.26 consensus, and sales of $41.65 billion?$41.95 billion (previously $41.10 billion?$41.90 billion) versus $41.814 billion consensus.

The company also increased its fiscal 2026 guidance comparable sales growth outlook to +0.5% to +1.2% from the prior range of -1% to +1% earlier.

For the fourth quarter, Best Buy (BBY) expects comparable sales growth in the range of 1.0% decline to 1.0% growth, and an adjusted operating income rate in the range of 4.8% to 4.9%.

BBY Price Action: Best Buy Co (BBY) shares were up 3.81% at $78.50 at the time of publication on Tuesday, according to Benzinga Pro data.

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