BBY Earnings: Best Buy Stock Slips on Mixed Q1 Earnings & Guidance Cut

Best Buy (BBY) stock slipped on Thursday after the electronics retailer posted mixed results in its Q1 earnings report. It also reduced its outlook in light of President Donald Trump’s tariffs.

Starting with its Q1 results, Best Buy’s adjusted earnings per share were $1.15 on revenue of $8.77 billion. While adjusted EPS was above Wall Street’s estimate of $1.09, revenue fell short of its $8.81 billion estimate. Investors will also note that adjusted EPS was down 4.17% year-over-year from $1.20, while revenue decreased roughly 1% from $8.85 billion.

BBY stock was down 1.47% in pre-market trading on Thursday, following an almost 1% drop yesterday. The company’s shares have also fallen 15.58% year-to-date and 12.3% over the past 12 months.

Best Buy Outlook Slashed

Matt Bilunas, Chief Financial Officer of Best Buy, updated the company’s Fiscal 2026 outlook today. He said the changes were made “to incorporate the impact of tariffs.” The CFO noted, “Our underlying working assumptions are that tariffs stay at the current levels for the rest of the year, and there is no material change in consumer behavior from the trends we have seen in recent quarters.”

Best Buy now expects Fiscal 2026 adjusted EPS of $6.15 to $6.30, compared to its previous guidance of $6.20 to $6.60. At a midpoint of $6.23 per share, this should still surpass Wall Street’s estimate of $6.17.

Best Buy also reduced its revenue guidance to $41.1 billion to $41.9 billion from $41.4 billion to $42.2 billion. With a midpoint of $41.5 billion, this should just squeeze past analysts’ revenue estimate of $41.43 billion for Fiscal 2026.

Is BBY Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for Best Buy is Moderate Buy, based on nine Buy, eight Hold, and a single Sell rating over the past three months. With that comes an average BBY stock price target of $85.87, representing a potential 20.06% upside for the shares. These ratings and price targets will likely change as analysts update their coverage following today’s earnings.

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