Best Buy Stock Slides After Disappointing Q3 Results and Revised Forecast

Best Buy Co Inc. (BBY) reported its third-quarter financial results for the fiscal year 2025, which fell short of analysts’ expectations, leading to a significant drop in the company’s stock price. The enterprise revenue for the quarter was $9.45 billion, a decline from $9.76 billion in the same period last year. Comparable sales decreased by 2.9%, while GAAP diluted earnings per share (EPS) increased by 4% to $1.26.

The company’s domestic revenue saw a 3.3% decline to $8.70 billion, with online revenue accounting for 31.4% of total domestic sales. Despite the decline in sales, Best Buy maintained its non-GAAP operating income rate guidance of 4.1-4.2% for the full year.

Best Buy also updated its fiscal year 2025 guidance, projecting revenue between $41.1 billion and $41.5 billion and a comparable sales decline of 2.5-3.5%. This revised forecast contributed to the stock’s decline, with shares tumbling more than 7% in pre-market trading on Tuesday.

The disappointing results and the revised forecast have led to a negative reaction from investors, reflecting concerns about the company’s performance in a challenging retail environment.