Best Buy Co., Inc. (NYSE: BBY) shares rose more than 6% intra-day Tuesday after the electronics retailer reported fourth-quarter earnings that exceeded analyst expectations.
Adjusted earnings per share came in at $2.61, surpassing the $2.47 consensus estimate by $0.14. Revenue totaled $13.81 billion, slightly below the $13.91 billion forecast and down 1% from $13.95 billion in the prior-year quarter. Comparable sales declined 0.8%.
For fiscal 2027, Best Buy guided adjusted EPS of $6.30 to $6.60, with a midpoint of $6.45 below the $6.65 consensus estimate. Revenue is expected to range between $41.2 billion and $42.1 billion, with a midpoint of $41.65 billion, also below the $42.2 billion consensus.
For the first quarter, the company projected comparable sales growth of approximately 1% and an adjusted operating income rate of roughly 3.9%. Shares surged as much as 14.1% following the results.
The domestic segment generated revenue of $12.58 billion, down 1.1% year over year, with declines in home theater and appliances partially offset by growth in computing and mobile phones. The domestic gross profit rate held steady at 20.9%, as expansion in Best Buy Ads and Marketplace helped offset lower product margins.
For fiscal 2026, Best Buy returned to positive comparable sales growth of 0.5% and expanded its operating income rate. The board approved a 1% increase in the dividend to $0.96 per share, payable April 14, 2026.
