Best Buy Co Inc (NYSE:BBY) stock rose 4.73% (As on November 26, 11:23:16 AM UTC-4, Source: Google Finance) after the company’s better-than-expected fiscal third quarter earnings report. The strong performance prompted Best Buy to raise its full-year outlook, signaling increased confidence in consumer demand for technology products heading into the critical holiday shopping season. Best Buy’s fiscal third quarter results reflected a notable turnaround in consumer electronics demand, with comparable sales climbing 2.7% year-over-year, the company’s highest growth rate in four years. CEO Corie Barry attributed the performance to robust sales across computing, gaming, and mobile phone categories, along with growth in wearables and headphones. The retailer benefited from technology innovation including the Nintendo Switch 2, new iPhones, and AI-enabled laptops, which drove customers to upgrade existing devices despite lingering economic caution. The net income has declined to $140 million, or 66 cents per share, from $273 million, or $1.26 per share, a year earlier. U.S. comparable sales increased 2.4% as shoppers purchased computers, gaming systems, and mobile phones, though appliance and home theater sales lagged. Barry noted that customers remained “deal focused and attracted to more predictable sales moments,” such as back-to-school promotions and Best Buy’s October sale coinciding with Amazon’s Prime Day event.
BBY in the third quarter of FY26 has reported the adjusted earnings per share of $1.40, beating the analysts’ estimates for the adjusted earnings per share of $1.31. The company had reported the adjusted revenue of $9.67 billion in the third quarter of FY26, beating the analysts’ estimates for revenue of $9.59 billion.
Following the strong quarterly performance, Best Buy elevated its full-year guidance, now expecting revenue between $41.65 billion and $41.95 billion compared to its previous range of $41.1 billion to $41.9 billion. The company also raised its adjusted earnings per share forecast to $6.25 to $6.35 from $6.15 to $6.30.
Most significantly, Best Buy now anticipates full-year comparable sales to range from a 0.5% increase to a 1.2% rise, compared with prior expectations for a potential 1% decline to a 1% climb. With the updated guidance, annual revenue is expected to slightly exceed last year’s total of $41.53 billion, potentially ending a three-year streak of declining sales.
Meanwhile, the slower housing market has led customers to replace individual broken appliances rather than purchase premium sets, and promotions have been less effective. To address this, Best Buy plans to increase staffing in the appliance department, accelerate deliveries, and offer same-day availability for select items.
Despite these headwinds, the company’s third-party marketplace launched in mid-August has shown promise, expanding from its original inventory to more than 1,000 sellers and 11 times more products available online, with lower return rates than first-party purchases.