Best Buy (BBY) Stock Soars 10% on Strong Q1 Earnings Performance

Quick Summary

• Best Buy exceeded Q1 projections with adjusted EPS of $1.28 compared to analyst expectations of $1.23
• Quarterly revenue reached $8.94 billion, surpassing the forecasted $8.83 billion
• Comparable store sales increased 2%, driven by strength in gaming, computing, and mobile segments
• BBY shares climbed more than 10% during premarket hours following the announcement
• Company maintains full-year outlook: revenue $41.2B–$42.1B, adjusted EPS $6.30–$6.60

Best Buy (BBY) shares surged over 10% in Thursday’s premarket session after the consumer electronics giant delivered first-quarter financial results that exceeded Wall Street’s projections across key metrics, including both earnings and revenue.

Best Buy Co., Inc., BBY

The retailer announced net earnings of $276 million, translating to $1.31 per share, representing a significant increase from the prior year’s $202 million, or 95 cents per share. On an adjusted basis, earnings per share totaled $1.28, surpassing the analyst consensus of $1.23. Total revenue climbed to $8.94 billion from $8.77 billion in the same quarter last year, exceeding the $8.83 billion Wall Street forecast.

Comparable store sales expanded 2% on a year-over-year basis — outperforming the company’s own projections — with domestic comparable sales rising 1.8% and international locations posting 4.7% growth. Wall Street analysts had anticipated only 0.9% overall comparable sales expansion.

The quarter’s domestic growth was primarily fueled by robust performance in gaming consoles, computing products, mobile devices, and service offerings. These gains were partially offset by weakness in the appliance category.

Particularly noteworthy was the performance of emerging product categories. Revenue from collectibles, 3D printing equipment, and AI-powered eyewear doubled compared to last year. According to company executives, consumers demonstrated appetite for premium, cutting-edge technology products even as they remained price-conscious overall.

Executive Succession in Progress

These positive results come during a period of Best Buy leadership transition. Corie Barry, who has served as chief executive since 2019, revealed plans to step down this fall. Jason Bonfig, a longtime Best Buy executive, is set to assume the CEO role on November 1.

Bonfig outlined four strategic pillars for his tenure: establishing Best Buy as an integrated retail, media, advertising, and technology enterprise; expanding market penetration; enhancing customer experience; and cultivating what he characterized as a “human-powered, customer-focused company.”

Alternative Revenue Streams Accelerating

Similar to Walmart and Target, Best Buy has been expanding its advertising and third-party marketplace operations. These business segments typically deliver superior profit margins compared to conventional product sales and are increasingly central to the company’s growth strategy.

CEO Barry highlighted Best Buy Ads and the company’s Marketplace platform as standout performers during the quarter.

The electronics retailer has been contending with an extended period of declining sales, exacerbated by tariff uncertainties and weakening consumer sentiment. During the previous quarter, Barry noted a divergence between higher-income and lower-income customer segments, with particular softness in big-ticket item purchases.

The current quarter’s performance indicates some of those headwinds may be subsiding — though the sustainability remains to be seen.

Looking ahead to Q2, Best Buy projects approximately 1% comparable sales growth, noting a challenging year-over-year comparison due to a major gaming console release in June 2025. Through May, comparable sales are tracking in the high single-digit positive range, according to CFO Matt Bilunas.

Management maintained its full-year guidance: adjusted earnings per share between $6.30 and $6.60, revenue spanning $41.2 billion to $42.1 billion, and comparable sales expected to range from down 1% to up 1%.

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