Best Buy (BBY) stock jumped more than 10% in premarket trading Thursday after the electronics retailer posted better-than-expected first-quarter results, with profit and revenue both coming in ahead of Wall Street forecasts.
The company reported net income of $276 million, or $1.31 per share, up from $202 million, or 95 cents per share, a year ago. Adjusted EPS came in at $1.28, topping the $1.23 analysts had pencilled in. Revenue rose to $8.94 billion from $8.77 billion a year prior, beating the $8.83 billion consensus estimate.
$BBY JUST DROPPED Q1 FY27, AND IT’S A BEAT
Best Buy came in hotter than expected. Here’s the breakdown
EPS: $1.28 vs $1.22 est. (+$0.06 beat)
Stock: +7% premarket
Growth… pic.twitter.com/KftxEkYIQf
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Comparable sales grew 2% year-over-year — above the company’s own outlook — with domestic comps up 1.8% and international up 4.7%. Analysts had expected just 0.9% overall comparable sales growth.
Gaming consoles, computing, mobile phones, and services were the biggest domestic growth drivers in the quarter. Appliance sales declined, acting as a partial offset.
Emerging categories also turned heads. Sales of collectibles, 3D printers, and AI-embedded glasses doubled year-over-year. The company said shoppers showed a willingness to spend on higher-ticket, innovative tech despite ongoing value-consciousness.
The strong quarter arrives as Best Buy navigates a CEO handover. Corie Barry, who has led the company since 2019, announced she will step down in the fall. Jason Bonfig, a Best Buy veteran, will take over as CEO on November 1.
“With this momentum, I believe it is the right time to transition the leadership of Best Buy,” Barry said in Thursday’s release.
Bonfig laid out four priorities: positioning Best Buy as a retail, media, advertising, and technology business; growing its reach; improving the customer experience; and building what he described as a “human-powered, customer-focused company.”
Like Walmart and Target, Best Buy has been leaning into advertising and third-party marketplace businesses. These initiatives carry higher profit margins than traditional merchandise sales and are becoming a bigger part of the growth story.
CEO Barry pointed to Best Buy Ads and Marketplace as areas of strong performance this quarter.
The company has been dealing with a prolonged sales slump, compounded by tariff pressures and softer consumer confidence. Last quarter, Barry flagged a split between higher-income and lower-income shoppers, with weakness in big-ticket purchases.
This quarter’s results suggest some of that pressure is easing — at least for now.
For Q2, Best Buy is guiding for around 1% comparable sales growth, acknowledging it faces a tough comparison against a major gaming console launch in June 2025. Comparable sales through May are currently up high single digits, according to CFO Matt Bilunas.
Full-year guidance was reaffirmed: adjusted EPS of $6.30 to $6.60, revenue of $41.2 billion to $42.1 billion, and comparable sales expected in the range of down 1% to up 1%.
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