Best Buy Co., Inc. reported third‑quarter 2025 results that exceeded analyst expectations, with revenue of $9.67 billion—up 2.4% year‑over‑year—and diluted earnings per share of $0.66, compared with $1.26 in the same quarter a year earlier. Adjusted diluted EPS rose to $1.40, and comparable sales grew 2.7% YoY, the first positive growth in the metric since the prior year’s 2.9% decline.
The revenue beat was driven by robust demand in the company’s core technology categories—computing, gaming and mobile phones—alongside strong performance in both online and in‑store channels. Holiday‑season demand is expected to further lift sales, and the company’s expanded Best Buy Marketplace and advertising initiatives are beginning to contribute to top‑line growth.
EPS surpassed consensus by $0.09, a 7% beat, largely due to disciplined cost management and a favorable mix shift. The operating income rate climbed to 4.0% from 3.7% a year earlier, reflecting higher service revenue and improved operational leverage. While the domestic gross‑profit rate slipped to 23.3% from 23.6%—a result of lower product margin rates—service‑related gains helped offset the decline.
Management raised the full‑year 2026 outlook, projecting revenue of $41.65 billion to $41.95 billion and adjusted diluted EPS of $6.25 to $6.35, up from the prior guidance of $41.1 billion to $41.5 billion and $6.00 to $6.10. The upgrade signals confidence in sustained demand and the continued expansion of the marketplace and advertising business.
Segment analysis shows that while computing, gaming and mobile phones drove growth, home‑theater and appliance sales fell, contributing to the modest drop in gross‑profit rate. The company’s focus on high‑margin services and its e‑commerce platform is expected to support future profitability as it navigates competitive pressures and macro‑economic uncertainty.
CEO Corie Barry highlighted the company’s “strong execution” and “flexibility” in meeting customer needs, noting that the holiday season would “set us up for an exciting period.” Investors responded favorably to the results, reflecting confidence in Best Buy’s strategy and execution.
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