Key Highlights
- First-quarter adjusted earnings per share of $1.28 surpassed analyst expectations of $1.23
- Quarterly revenue reached $8.94 billion, exceeding the projected $8.83 billion
- Comparable store sales increased 2%, driven by strong performance in gaming, computing, and mobile segments
- Shares of BBY climbed more than 10% during premarket hours following the earnings announcement
- Company maintains full-year outlook: revenue between $41.2B–$42.1B and adjusted EPS of $6.30–$6.60
Shares of Best Buy (BBY) surged over 10% in early Thursday trading after the consumer electronics giant delivered first-quarter financial results that exceeded analyst projections across key metrics, including both earnings and sales.
The retailer disclosed net earnings of $276 million, translating to $1.31 per share, representing a substantial increase from the prior year’s $202 million, or 95 cents per share. On an adjusted basis, earnings per share registered at $1.28, surpassing the Street consensus of $1.23. Total revenue climbed to $8.94 billion from $8.77 billion in the year-ago period, eclipsing analyst forecasts of $8.83 billion.
Comparable sales posted a 2% year-over-year increase—outperforming the company’s own projections—with U.S. comparable sales advancing 1.8% and international markets jumping 4.7%. Wall Street had anticipated overall comparable sales growth of just 0.9%.
The quarter’s domestic revenue gains were primarily fueled by robust demand in gaming hardware, computing products, smartphones, and service offerings. Appliance category sales experienced declines, somewhat offsetting these gains.
Notably, emerging product categories demonstrated impressive momentum. Revenue from collectibles, 3D printing equipment, and AI-powered eyewear doubled compared to the same quarter last year. Management noted that consumers continue demonstrating appetite for premium, cutting-edge technology products even while maintaining price sensitivity.
Executive Leadership in Transition
The impressive quarterly performance comes amid a significant Best Buy leadership change. Corie Barry, who has served as chief executive since 2019, revealed plans to step down this fall. Jason Bonfig, a longtime company executive, is set to assume the CEO role effective November 1.
“With this momentum, I believe it is the right time to transition the leadership of Best Buy,” Barry stated in Thursday’s earnings release.
Bonfig outlined a four-pillar strategic vision: establishing Best Buy as a comprehensive retail, media, advertising, and technology enterprise; expanding market presence; enhancing customer experiences; and cultivating what he characterized as a “human-powered, customer-focused company.”
Alternative Revenue Streams Expanding
Following a similar playbook to Walmart and Target, Best Buy has been increasingly investing in advertising services and third-party marketplace operations. These business segments typically generate superior profit margins compared to conventional product sales and are becoming increasingly central to the company’s growth trajectory.
Outgoing CEO Barry highlighted Best Buy Ads and the Marketplace platform as particularly strong performers during the quarter.
The electronics retailer has been navigating an extended period of sales challenges, intensified by tariff headwinds and weakening consumer sentiment. During the previous quarter, Barry identified a divergence in spending patterns between affluent and budget-conscious consumers, with particular softness in high-value discretionary purchases.
This quarter’s financial performance indicates some moderation of these pressures—though sustainability remains uncertain.
Looking ahead to Q2, Best Buy projects approximately 1% comparable sales growth, acknowledging challenging year-over-year comparisons related to a significant gaming console release in June 2025. Through May, comparable sales are tracking in the high single-digit positive range, according to CFO Matt Bilunas.
Management reiterated its full-year financial guidance: adjusted earnings per share between $6.30 and $6.60, total revenue ranging from $41.2 billion to $42.1 billion, and comparable sales growth expected to land between down 1% and up 1%.
