Best Buy surges on Q4 profit beat, despite softer holiday quarter sales and disappointing outlook

Best Buy is up more than 11% in premarket trading on Tuesday after releasing Q4 earnings that beat expectations, despite a weaker-than-expected holiday quarter and a disappointing outlook for the current year.

For the quarter ended January 31, 2026, the consumer electronics chain reported:

• Adjusted earnings per share of $2.61, topping Wall Street expectations of $2.46 (per data compiled by FactSet).

• Revenue of $13.81 billion, some way below the analyst consensus estimate of $13.87 billion.

The company’s “overall market share was at least flat, pointing to slightly softer customer demand for our industry during the holiday quarter,” per CEO Corie Barry. However, Best Buy earnings came in ahead of expectations partly due to the company upscaling its higher-margin Best Buy Ads business, “almost doubling the number of ad partners compared to the prior year,” as well as success in its third-party marketplace in the US.

Best Buy’s outlook for the current fiscal year, meanwhile, came out lower than expected. The retailer forecasts:

• Adjusted EPS between $6.30 and $6.60, below Wall Street’s projection of $6.63.

• Revenue in the range of $41.2 billion and $42.1 billion, compared to analysts’ estimates of $42.2 billion.

For the current quarter, the company expects comparable sales growth (measuring sales online and in stores open at least 14 months) of approximately 1% and an adjusted operating income rate of approximately 3.9%.