Best Buy (BBY) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $9.7 billion, up 2.4% year-over-year, with comparable sales growth of 2.7% driven by computing, gaming, and mobile phones.

• Adjusted diluted EPS rose 11% to $1.40, while GAAP diluted EPS fell to $0.66 due to $171 million in Best Buy Health impairments.

• Online sales increased for the 10th consecutive quarter, with online revenue reaching $2.82 billion, 31.8% of domestic revenue.

• Customer experience and net promoter scores improved year-over-year, especially in meeting tech needs.

• Significant restructuring initiatives and store optimization were undertaken, including Best Buy Health business optimization.

Financial highlights

• Gross profit for the quarter was $2.25 billion, with a gross margin of 23.2%, down from 23.5% year-over-year.

• Adjusted operating income was $388 million (4.0% of revenue), up from $351 million (3.7%) last year.

• Operating income margin decreased to 2.0% from 3.7% year-over-year, with net earnings at $140 million, down from $273 million.

• SG&A expenses were $1.88 billion (19.5% of revenue), a slight improvement from 19.8% in the prior year.

• Cash and cash equivalents at quarter-end were $923 million, up from $643 million year-over-year.

Outlook and guidance

• Q4 comparable sales expected in the range of down 1% to up 1%; adjusted operating income rate of 4.8%-4.9%.

• Full-year FY26 revenue guidance raised to $41.65–$41.95 billion, comparable sales growth of 0.5%-1.2%, adjusted operating income rate of ~4.2%, and adjusted EPS of $6.25–$6.35.

• Fiscal 2026 gross profit rate expected to decline by approximately 15 basis points year-over-year.

• Management expects continued store closures in fiscal 2027 as part of ongoing optimization.

• Capital expenditures projected at $700 million.