Key facts
- Best Buy raised its annual sales forecast, expecting revenue between $42.3 billion and $42.8 billion.
- The company also increased its profit forecast for fiscal year 2026 to $6.25-$6.35 per share.
- Comparable sales for the third quarter rose 2.7%, exceeding analyst expectations.
- Strong demand for computing, tablets, and gaming products is driving sales.
- Shares rose 2.5% in premarket trading following the announcement.
Electronics retailer Best Buy has raised its annual sales and profit forecasts, anticipating continued consumer demand for technology upgrades and replacements, particularly for laptops, smartphones, and household electronics. The company cited strong holiday demand, fueled by discounts, as a key driver.
For the fiscal year, Best Buy now projects revenue between $42.3 billion and $42.8 billion, an increase from its previous guidance of $41.2 billion to $42.1 billion. The company also revised its comparable sales forecast for fiscal year 2026 to a rise of 0.5% to 1.2%, compared to its earlier expectation of a 1% drop to a 1% rise. Adjusted profit-per-share is now expected to be between $6.25 and $6.35, up from a prior target of $6.15 to $6.30.
These positive updates follow a strong third quarter, where comparable sales increased by 2.7%, surpassing analysts' average expectation of a 1.62% rise. The computing and tablets segment, which represents about a third of Best Buy's sales, is experiencing robust growth as consumers adopt new technologies and replace older devices. The company also noted a boost from strong gaming demand, partly attributed to the recent launch of Nintendo's Switch 2.
In response to the improved outlook, Best Buy's shares were up 2.5% in premarket trading.