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% and adjusted EPS up 11% to $1.40; GAAP EPS was $0.66, down from $1.26 due to non-cash impairments.

• Net earnings for the quarter were $140 million, down from $273 million, with operating income at $198 million, primarily impacted by $192 million in Best Buy Health impairments.

• Online sales rose for the fifth consecutive quarter, representing 31.8% of domestic revenue, with improved customer experience and fulfillment speed.

• Strategic focus on omnichannel experiences, new profit streams (marketplace, ads), and operational efficiencies.

• Significant restructuring initiatives included labor and store optimization and 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).

• Operating income margin decreased to 2.0% from 3.7% year-over-year.

• SG&A expenses were $1.88 billion (19.5% of revenue), with adjusted SG&A at $1.86 billion (19.2%).

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

• Year-to-date, $802 million returned to shareholders via $602 million in dividends and $200 million in share repurchases.

Outlook and guidance

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

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

• Capital expenditures for FY26 projected at $700 million.

• Adjusted effective tax rate for FY26 expected at 25.4%.

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