Best Buy (NYSE:BBY) Shares Gap Up After Strong Earnings

Best Buy Co., Inc. (NYSE:BBY) shares gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $61.59, but opened at $64.61. Best Buy shares last traded at $64.3540, with a volume of 3,744,345 shares traded.

The technology retailer reported $2.61 earnings per share for the quarter, topping analysts’ consensus estimates of $2.50 by $0.11. Best Buy had a return on equity of 50.02% and a net margin of 1.54%.The business had revenue of $13.81 billion during the quarter, compared to the consensus estimate of $13.96 billion. During the same period in the previous year, the company posted $2.58 earnings per share. The firm’s revenue for the quarter was down 1.0% on a year-over-year basis. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS.

More Best Buy News

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

• Positive Sentiment: Q4 earnings beat — Best Buy reported $2.61 EPS, topping consensus and beating Zacks’ estimate; profitability metrics (ROE ~50%) show margin progress that helped calm investors. Best Buy (BBY) Q4 Earnings Beat Estimates
• Positive Sentiment: Profit improvement highlighted — company showed improved margins and profit growth despite a slight revenue decline, which helped underpin the upside surprise in EPS. Best Buy earnings and press release
• Positive Sentiment: Market reaction nuance — several outlets note the stock jumped initially as investors focused on the EPS beat and profit trends despite weak sales guidance. Best Buy Earnings Are Mixed. Why the Stock Is Surging.
• Neutral Sentiment: Commentary and sentiment — pundits (including Jim Cramer) flagged risks from higher device and memory costs and mixed messaging on demand, which adds noise to near‑term investor sentiment. Jim Cramer on Best Buy
• Negative Sentiment: Guidance disappointed — Best Buy set FY‑2027 EPS guidance of $6.30–$6.60 and revenue guidance of $41.2B–$42.1B, both below consensus, signaling tepid growth expectations and weighing on the share price. Best Buy forecasts annual sales below estimates
• Negative Sentiment: Sales/revenue weakness and demand pressure — holiday sales missed expectations (Q revenue $13.81B vs. est ~$13.96B) and Best Buy cited consumers hunting for value plus tariff/supply‑chain uncertainty as headwinds. Best Buy’s holiday sales disappoint

Analyst Ratings Changes

BBY has been the subject of a number of analyst reports. Wedbush lowered their price target on Best Buy from $80.00 to $70.00 and set a “neutral” rating for the company in a research report on Tuesday, February 24th. JPMorgan Chase & Co. lowered shares of Best Buy from an “overweight” rating to a “neutral” rating and decreased their price objective for the company from $99.00 to $76.00 in a research note on Monday, February 2nd. Daiwa Securities Group lifted their target price on shares of Best Buy from $76.00 to $80.00 and gave the stock a “neutral” rating in a research report on Friday, November 28th. Telsey Advisory Group reaffirmed an “outperform” rating and issued a $95.00 target price on shares of Best Buy in a report on Tuesday, February 24th. Finally, Barclays decreased their price target on Best Buy from $81.00 to $77.00 and set an “equal weight” rating for the company in a research report on Thursday, January 8th. Seven analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $80.05.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. grew its stake in Best Buy by 2.4% in the third quarter. Vanguard Group Inc. now owns 23,947,415 shares of the technology retailer’s stock worth $1,810,904,000 after purchasing an additional 552,360 shares during the period. Commonwealth Equity Services LLC increased its stake in shares of Best Buy by 46.2% during the third quarter. Commonwealth Equity Services LLC now owns 142,288 shares of the technology retailer’s stock valued at $10,760,000 after purchasing an additional 44,989 shares in the last quarter. CWM LLC lifted its holdings in shares of Best Buy by 272.6% during the third quarter. CWM LLC now owns 183,842 shares of the technology retailer’s stock valued at $13,902,000 after purchasing an additional 134,508 shares during the last quarter. Bank of New York Mellon Corp boosted its position in shares of Best Buy by 2.3% in the 3rd quarter. Bank of New York Mellon Corp now owns 1,754,844 shares of the technology retailer’s stock worth $132,701,000 after purchasing an additional 39,026 shares in the last quarter. Finally, Allianz Asset Management GmbH increased its position in Best Buy by 5.7% during the 3rd quarter. Allianz Asset Management GmbH now owns 1,639,202 shares of the technology retailer’s stock valued at $123,956,000 after buying an additional 89,057 shares in the last quarter. Institutional investors own 80.96% of the company’s stock.

Best Buy Trading Up 5.6%

The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.26 and a current ratio of 1.05. The stock has a 50-day moving average of $66.90 and a two-hundred day moving average of $72.94. The company has a market cap of $13.63 billion, a P/E ratio of 21.32, a price-to-earnings-growth ratio of 1.48 and a beta of 1.46.

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.