Best Buy Co., Inc. (NYSE:BBY) shares are trading higher on Wednesday after multiple firms raised their respective price targets on the stock following a strong earnings beat.
• BBY stock is moving in positive territory. Get the complete picture here.
Best Buy reported on Tuesday the third-quarter 2026 sales increase of 2.4% year-over-year (Y/Y) to $9.67 billion, beating the consensus of $9.59 billion.
Best Buy raised its fiscal 2026 guidance, now projecting adjusted EPS of $6.25–$6.35 (previously $6.15–$6.30) versus $6.26 consensus, and sales of $41.65 billion–$41.95 billion (previously $41.10 billion–$41.90 billion) versus $41.814 billion consensus.
Analyst Take
Guggenheim analyst Steven Forbes reiterated a Buy rating and $90 price target.
The analyst says that quarterly results beat their estimate and notes that the company witnessed a positive comp for the second consecutive period.
Management noted that unit volume, rather than pricing, largely drove comps, adds the analyst.
Forbes writes that with guidance raised, they see potential for low single-digit comp growth in the near to mid-term.
The analyst says that BBY's results further reinforce his out-year earnings outlook, with emerging profit streams gaining traction, combined with strong vendor support enhancing margins.
Telsey analyst Joseph Feldman raised the price forecast to $95 from $90, while keeping an Outperform rating.
The analyst says that he views Best Buy as effectively executing and expanding its share in consumer electronics by driving innovation, leveraging scale and vendor partnerships, controlling costs, and operating efficiently.
Going forward, growth in higher-margin membership, marketplace, and advertising initiatives, along with product innovation and replacement cycles, should support positive comps and earnings, adds the analyst.
Feldman raised its 2025 EPS estimate to $6.35 from $6.25 (FactSet: $6.24), reflecting higher total comps of 1% (previously 0.7%; FS: 0.9%) and stable operating margin at 4.3% (previously 4.2%; FS: 4.2%).
For 2026, the analyst now sees EPS at $6.83 (previously $6.72; FS: $6.71), with comps steady at 1.6% (FS: 1.8%) and operating margin expanding ~12 bps to 4.4% (FS: 4.3%).
BBY Price Action: Best Buy shares are up 1.73% at $81.04 at publication on Wednesday.
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