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Best Buy Co., Inc. (BBY), headquartered in Richfield, Minnesota, retails consumer electronics, home office products, entertainment software, appliances, and related services through its retail stores, as well as its website. Valued at $14.3 billion by market cap, the company also retails pre-recorded home entertainment products through retail stores. The retail giant is expected to announce its fiscal first-quarter earnings for 2026 before the market opens on Thursday, May 29.
Ahead of the event, analysts expect BBY to report a profit of $1.08 per share on a diluted basis, down 10% from $1.20 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect BBY to report EPS of $6.22, down 2.4% from $6.37 in fiscal 2025. However, its EPS is expected to rise 10% year over year to $6.84 in fiscal 2027.
BBY stock has underperformed the S&P 500’s ($SPX) 8.7% gains over the past 52 weeks, with shares down 11.1% during this period. Similarly, it underperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 10.6% gains over the same time frame.
As Best Buy faces uncertainty from tariffs and the trade war with China and Mexico, the company is considering the potential need to raise prices, given the challenging economic landscape. They are carefully monitoring consumer behavior and the impact of potential inflation on discretionary purchases. Despite initial expectations of minimal changes in consumer behavior, the company experienced a weak quarter overall.
On Mar. 4, BBY shares closed down more than 13% after reporting its Q4 results. Its adjusted EPS of $2.58 topped Wall Street expectations of $2.40. The company’s revenue was $14 billion, topping Wall Street forecasts of $13.7 billion. BBY expects full-year adjusted EPS in the range of $6.20 to $6.60, and expects revenue to be between $41.4 billion and $42.2 billion.
Analysts’ consensus opinion on BBY stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 23 analysts covering the stock, 10 advise a “Strong Buy” rating, 12 give a “Hold,” and one recommends a “Moderate Sell.” BBY’s average analyst price target is $88.15, indicating an ambitious potential upside of 32.2% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
