Best Buy EPS Beats by 5.24% but Misses Revenue, Shares Jump 6%
Best Buy reported Q4 adjusted EPS of $2.61, up 5.24% year-over-year, on revenues of $13.81 billion, missing consensus by 0.67%. The retailer forecast fiscal 2027 EPS of $6.30–$6.60 and revenue of $41.2–$42.1 billion, both below analyst expectations, yet shares rose over 6%.
1. Q4 Earnings Performance
Best Buy delivered adjusted EPS of $2.61 per share in Q4, a 5.24% increase year-over-year, on revenues of $13.81 billion that missed analyst consensus by 0.67%. Comparable sales declined 0.8% as home theater and appliances weighed on top-line growth.
2. Fiscal 2027 Guidance
The company set adjusted EPS guidance of $6.30–$6.60 and revenue guidance of $41.2–$42.1 billion, below the $6.65 EPS and $42.2 billion revenue consensus, reflecting a tempered outlook in a competitive retail environment.
3. Market Reaction
Shares of Best Buy rallied over 6% intraday following the earnings release, reversing earlier declines and pushing the stock back into positive territory for the year-to-date.
4. Profitability Drivers
The domestic gross profit rate held at 20.9%, supported by expansion in Best Buy Ads and Marketplace segments, which helped offset margin pressure from weaker product sales.