Q3 performance
Growth initiatives
In Q3, BBY delivered its seventh consecutive quarter of positive comps in computing. It also saw a 30% YoY growth in desktop computers led by the transition to the Windows 11 operating system. In gaming, the company saw healthy demand for handheld gaming and augmented reality glasses. It also saw strong sales growth in mobile phones. The retailer expects growth in these categories to continue in the fourth quarter of 2026.
As part of its growth initiatives, Best Buy is working to drive its omnichannel and digital capabilities. The company is working on refreshing and upgrading its stores to deliver new products and experiences. The usage of its mobile app continues to increase and it is working on improving the online shopping experience for customers by offering better personalization, product recommendations, pricing and delivery options.
BBY is gaining good traction on its online platform Best Buy Marketplace with a wide range of products across various categories from both reputed and new sellers. It is seeing high unit sales in categories like accessories and small appliances. In Q3, Marketplace made strong progress in terms of sellers, SKUs, traffic conversion rate, and sales. The platform’s results positively impacted the gross profit rate for the quarter. This momentum is expected to continue in Q4 2026. The platform is also opening up opportunities for advertising.
Best Buy is leveraging AI capabilities across various areas of its business such as product search, product recommendations and customer support, with plans to expand to areas like personalized marketing and scam detection.
Outlook
For fiscal year 2026, Best Buy expects revenue of $41.65-41.95 billion. Comparable sales growth is expected to be 0.5% to 1.2%. Adjusted EPS is expected to be $6.25-6.35.