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Best Buy’s third quarter results were well received by the market, with revenue and non-GAAP earnings per share both coming in ahead of Wall Street expectations. Management attributed the outperformance to robust sales in computing, gaming, and mobile phones, along with successful back-to-school campaigns and improved omnichannel experiences. CEO Corie Barry noted, “Customers remain resilient, but deal focused,” crediting the company’s broad assortment and expert service for driving continued momentum, particularly in product upgrade cycles like Windows transitions and new gaming launches.

Is now the time to buy BBY? Find out in our full research report (it’s free for active Edge members).

Best Buy (BBY) Q3 CY2025 Highlights:

• Revenue: $9.67 billion vs analyst estimates of $9.58 billion (2.4% year-on-year growth, 1% beat)
• Adjusted EPS: $1.40 vs analyst estimates of $1.31 (6.7% beat)
• Adjusted EBITDA: $594 million vs analyst estimates of $570.9 million (6.1% margin, 4% beat)
• The company slightly lifted its revenue guidance for the full year to $41.8 billion at the midpoint from $41.5 billion
• Management raised its full-year Adjusted EPS guidance to $6.30 at the midpoint, a 1.2% increase
• Operating Margin: 2%, down from 3.7% in the same quarter last year
• Locations: 1,083 at quarter end, down from 1,117 in the same quarter last year
• Same-Store Sales rose 2.7% year on year (-2.9% in the same quarter last year)
• Market Capitalization: $16.23 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Best Buy’s Q3 Earnings Call

• Simeon Gutman (Morgan Stanley) asked about the components of Q4 guidance versus Q3 momentum. CFO Matt Bilunas explained that tougher comparisons and category mix shifts, particularly in gaming and wearables, led to a more cautious outlook.
• Peter Keith (Piper Sandler) inquired about the marketplace’s early performance and EBIT impact. CEO Corie Barry emphasized strong initial customer adoption and lower return rates, while Bilunas noted the impact would be more neutral on EBIT this year due to a slower ramp.
• Joseph Feldman (Telsey Advisory Group) questioned the progress and impact of Best Buy’s loyalty membership program. Barry said paid memberships rose to nearly 8 million, and highlighted personalized promotions and strategic offers as key engagement drivers.
• Gregory Melich (Evercore) asked how tariffs affected pricing and assortment. Bilunas responded that most tariff impacts are reflected in current prices, but competition and assortment breadth have kept average selling prices flat year over year.
• Jonathan Matuszewski (Jefferies) sought clarity on the timeline and margin potential for agentic commerce (AI-enabled instant checkout). Barry said rollout will be fast but prioritized customer experience over immediate margin gains.

Catalysts in Upcoming Quarters

In the coming quarters, our team will be closely monitoring (1) the continued ramp and impact of the marketplace and advertising businesses on both sales growth and gross margins, (2) improvements in category performance, particularly in appliances and TVs, as new store formats and vendor partnerships mature, and (3) progress in AI-enabled digital initiatives that streamline customer experience and drive operational efficiencies. Execution on these initiatives will be key to sustaining momentum amid evolving consumer preferences and competitive pressures.

Best Buy currently trades at $77.27, up from $75.62 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).

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