Best Buy (NYSE:BBY) Releases FY 2027 Earnings Guidance

Best Buy (NYSE:BBY) issued an update on its FY 2027 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 6.300-6.600 for the period, compared to the consensus earnings per share estimate of 6.680. The company issued revenue guidance of $41.2 billion-$42.1 billion, compared to the consensus revenue estimate of $42.2 billion.

Best Buy Stock Up 7.1%

BBY stock opened at $65.95 on Wednesday. The business’s 50-day moving average price is $66.83 and its 200-day moving average price is $72.90. The stock has a market cap of $13.82 billion, a P/E ratio of 21.84, a PEG ratio of 1.47 and a beta of 1.46. The company has a quick ratio of 0.26, a current ratio of 1.05 and a debt-to-equity ratio of 0.44. Best Buy has a twelve month low of $54.99 and a twelve month high of $84.99.

Best Buy (NYSE:BBY) last released its earnings results on Tuesday, March 3rd. The technology retailer reported $2.61 EPS for the quarter, topping analysts’ consensus estimates of $2.50 by $0.11. Best Buy had a net margin of 1.54% and a return on equity of 50.02%. The company had revenue of $13.81 billion for the quarter, compared to analysts’ expectations of $13.96 billion. During the same quarter last year, the business earned $2.58 EPS. The firm’s revenue was down 1.0% compared to the same quarter last year. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. On average, equities research analysts forecast that Best Buy will post 6.18 EPS for the current year.

Analysts Set New Price Targets

Several research analysts recently weighed in on the stock. Barclays dropped their target price on shares of Best Buy from $81.00 to $77.00 and set an “equal weight” rating for the company in a report on Thursday, January 8th. Evercore dropped their price objective on Best Buy from $80.00 to $70.00 and set an “in-line” rating for the company in a research note on Tuesday, February 3rd. UBS Group increased their target price on Best Buy from $93.00 to $96.00 and gave the stock a “buy” rating in a research report on Wednesday, November 26th. Loop Capital lifted their target price on Best Buy from $80.00 to $85.00 and gave the company a “buy” rating in a research note on Tuesday, November 25th. Finally, HSBC dropped their price target on Best Buy from $96.00 to $85.00 in a research note on Thursday, February 26th. Seven research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $79.70.

More Best Buy News

Here are the key news stories impacting Best Buy this week:

• Positive Sentiment: EPS beat and profit resilience — Best Buy reported adjusted EPS of $2.61, above estimates, and highlighted margin improvement that reassured investors despite weaker sales; this beat is a primary driver of the rally. Best Buy (NYSE:BBY) Misses Q4 CY2025 Revenue Estimates, But Stock Soars 13.3%
• Positive Sentiment: Leaner cost structure boosting profits — Management pointed to operating efficiencies and lower costs that helped lift profitability even as top-line softness continued, a theme analysts credited for the post-earnings move. Best Buy’s Leaner Cost Structure Drives Post-Earnings Rally
• Positive Sentiment: Company narrative on digital/AI and services — Management emphasized investment in digital experiences and AI-enabled services as a way to drive higher-margin sales and customer engagement, which calms some investor concerns about secular competitiveness. Best Buy Bets on AI as Consumers Avoid Big-Ticket Items
• Neutral Sentiment: Revenue and comparable-sales weakness — Q4 revenue missed consensus (about $13.81B vs. ~$13.96B expected) and same-store sales fell modestly, signaling continued demand pressure even as EPS outperformed. Best Buy Reports Fourth Quarter Results
• Neutral Sentiment: Mixed analyst commentary — Some outlets framed the print as a clean beat on profits but called the overall picture mixed due to soft holiday sales and cautious tone from management; these balanced takes leave near-term sentiment sensitive to guidance details. Best Buy Is Today’s Top S&P 500 Stock. Why Weak Guidance Doesn’t Matter.
• Negative Sentiment: Weak forward guidance on sales — Best Buy issued FY2027 guidance below Street revenue expectations and signaled tepid growth as consumers hunt for value, a key negative that tempers the EPS beat. Best Buy forecasts annual sales below estimates
• Negative Sentiment: Sell-side downgrade and structural concerns — A noted downgrade argued Best Buy lacks differentiation and has e-commerce vulnerabilities versus larger rivals, raising the risk that profits could be cyclical rather than secular. Best Buy: No Compelling Reason To Own (Rating Downgrade)

Institutional Trading of Best Buy

Several hedge funds have recently modified their holdings of the company. Woodline Partners LP grew its holdings in shares of Best Buy by 40.1% in the first quarter. Woodline Partners LP now owns 16,436 shares of the technology retailer’s stock valued at $1,210,000 after purchasing an additional 4,701 shares in the last quarter. Daiwa Securities Group Inc. lifted its position in Best Buy by 4.4% during the second quarter. Daiwa Securities Group Inc. now owns 29,560 shares of the technology retailer’s stock valued at $1,984,000 after purchasing an additional 1,234 shares during the last quarter. Investment Management Corp of Ontario grew its stake in shares of Best Buy by 127.7% in the 2nd quarter. Investment Management Corp of Ontario now owns 12,997 shares of the technology retailer’s stock worth $872,000 after buying an additional 7,288 shares in the last quarter. Ieq Capital LLC increased its holdings in shares of Best Buy by 155.4% in the 2nd quarter. Ieq Capital LLC now owns 160,568 shares of the technology retailer’s stock worth $10,779,000 after buying an additional 97,688 shares during the last quarter. Finally, Alliancebernstein L.P. increased its holdings in shares of Best Buy by 32.0% in the 2nd quarter. Alliancebernstein L.P. now owns 313,584 shares of the technology retailer’s stock worth $21,051,000 after buying an additional 76,102 shares during the last quarter. 80.96% of the stock is owned by hedge funds and other institutional investors.

About Best Buy

Best Buy Co, Inc is a leading North American consumer electronics retailer that sells a broad range of products including computers, mobile phones, televisions and home theater systems, major appliances, smart-home devices, gaming hardware and software, wearables and related accessories. The company operates through a mix of large-format stores, smaller specialty locations and an e-commerce platform, offering national and private-brand merchandise from major consumer-technology manufacturers as well as third-party sellers.

Beyond product retailing, Best Buy provides a suite of services aimed at installation, repair and ongoing technical support.