Best Buy (BBY) Stock Jumps 10% After Surprise Q1 Earnings Beat

TLDR

• Best Buy beat Q1 earnings estimates with EPS of $1.28 adjusted vs $1.23 expected
• Revenue came in at $8.94 billion, above the $8.83 billion forecast
• Comparable sales grew 2%, led by gaming, computing, and mobile
• BBY stock rose over 10% in premarket trading following the results
• Full-year guidance reaffirmed: revenue $41.2B–$42.1B, adjusted EPS $6.30–$6.60

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.

Best Buy Co., Inc., BBY

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.

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.

Leadership Transition Underway

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.

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.”

Ads and Marketplace Gaining Ground

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%.

The post Best Buy (BBY) Stock Jumps 10% After Surprise Q1 Earnings Beat appeared first on CoinCentral.