Earnings Preview: Best Buy (BBY) expected to report lower earnings in Q4 2026 – AlphaStreet News

Shares of Best Buy Co., Inc. (NYSE: BBY) rose 1% on Tuesday. The stock has dropped 20% over the past three months. The electronics retailer is scheduled to report its earnings results for the fourth quarter of 2026 on Tuesday, March 3, before the market opens. Here’s a look at what to expect from the earnings report:

Revenue

Analysts are projecting revenue of $13.92 billion for Best Buy in the fourth quarter of 2026, which points to a slight dip from $13.95 billion reported in the same period a year ago. In the third quarter of 2026, revenue increased 2% year-over-year to $9.7 billion.

Earnings

The consensus estimate for earnings per share in Q4 2026 is $2.47, which implies a decline of 4% from the prior-year quarter. In Q3 2026, adjusted EPS grew 11% YoY to $1.40.

Also read: A look at Best Buy’s (BBY) progress on its growth strategy

Points to note

Best Buy expects comparable sales for the fourth quarter to range between down 1% to up 1%. In Q3, enterprise comparable sales grew 2.7%, with growth across both the domestic and international segments.

Best Buy is likely to have benefited from gains in the computing, gaming, and mobile phones categories, particularly during the holiday season. Technology innovation remains a key driver in high-price purchases. Although consumers remain budget-conscious and deal-focused in the current economic environment, they seem ready to spend on innovative products.

BBY continues to augment its stores and expand its assortment to improve the shopping experience for customers. It continues to invest in technology to offer customers personalized product recommendations, compelling prices, and convenient delivery options.

Best Buy is seeing good traction on its online platform Best Buy Marketplace with high unit sales in categories like accessories and small appliances. It is also seeing an increase in the use of its mobile app. In Q3, domestic comparable online sales grew 3.5%. The company is using AI tools across various sections of its business such as product search, marketing, and customer support.

BBY expects to see a decline in its gross profit rate in the fourth quarter, driven by a lower product margin rate due to increased promotions. It expects adjusted operating income rate to be 4.8-4.9% in Q4, compared to 4.9% in the previous year.