Best Buy posts strong Q2 but keeps guidance cautious as tariffs loom

Best Buy shares were down 4% Thursday afternoon after the electronics retailer delivered a solid Q2 but held its full-year guidance steady.

Adjusted diluted earnings per share came in at $1.28, beating the Street’s estimate of $1.21, while revenue hit $9.44 billion, above analysts’ calls for $9.23 billion. Same-store sales climbed 1.6%, versus an expected decline of 0.5%.

Looking ahead: Best Buy maintained its full-year outlook, projecting revenue of $41.1 billion to $41.9 billion and adjusted EPS of $6.15 to $6.30. While a bit above Wall Street’s $6.16 forecast, the guidance landed a bit flat given the buzz around gadgets and gaming demand and the general trend of companies raising guidance during this reporting period.

“We delivered better-than-expected results in the second quarter, and we feel increasingly confident about our plans for the back half of the year,” the company said in a statement. “Given the uncertainty of potential tariff impacts in the back half, both on consumers overall as well as our business, we feel it is prudent to maintain the annual guidance we provided last quarter.”

To mitigate tariff pressure, Best Buy has worked with suppliers to diversify production out of China, slashing its share of product costs from 55% down to a range of 30% to 35%.

Management said gaming and AI are proving to be big draws. For the Switch 2 launch in June, Best Buy doubled its in-store merchandising space and brought in Nintendo game trucks so shoppers could try the console out. Meanwhile, its computing lineup now includes 125 AI-powered laptops and desktops, with about 70% sold only at Best Buy.

Best Buy shares are down about 16% year to date.