Best Buy Q3 Profit Down, Adj. EPS Beats Street, Lifts FY26 Outlook - Update

(RTTNews) - Retailer Best Buy Co Inc. (BBY) on Thursday reported weak profit in its third quarter, while adjusted earnings and top line beat market estimates. Further, the company issued fourth-quarter outlook, and raised fiscal 2026 view.

In the pre-market activity, the shares were losing around 1.31 percent to trade at $74.64.

Looking ahead for the fourth quarter, the company projects comparable sales between a drop of 1.0 percent to a growth of 1.0 percent and adjusted operating income rate in the range of 4.8 percent to 4.9 percent.

For fiscal 2026, the company now expects adjusted earnings per share of $6.25 to $6.35, higher than the prior guidance of $6.15 to $6.30.

The Wall Street analysts on average expect the company to report earnings of $6.26 per share. Analysts' estimates typically exclude special items.

Adjusted operating income rate is still expected to be approximately 4.2 percent.

Revenue for the year is now projected to be $41.65 billion to $41.95 billion, compared to previously expected $41.1 billion to $41.9 billion. The Street is looking for revenues of $41.8 billion for the year.

The company now expects comparable sales growth of 0.5 percent to 1.2 percent, while previous guidance was between a drop of 1.0 percent and a growth of 1.0 percent.

Further, the company said its board of directors has authorized the payment of a regular quarterly cash dividend of $0.95 per share. The quarterly dividend is payable on January 6, to shareholders of record as of the close of business on December 16.

In its third quarter, the company's earnings came in at $140 million or $0.66 per share, compared with $273 million or $1.26 per share last year.

Adjusted earnings were $1.40 per share for the period, compared to $1.26 last year.

Analysts on average had expected the company to earn $1.31 per share. Analysts' estimates typically exclude special items.

The company's revenue for the period rose 2.4 percent to $9.672 billion from $9.445 billion last year. The Street expected revenues of $9.59 billion for the quarter.

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