Best Buy (BBY) Q1 2026 earnings

Best Buy on Thursday missed quarterly revenue expectations and cut its full-year sales and profit guidance as higher tariffs increase the costs of many consumer electronics that it sells.

For its fiscal 2026, the retailer said it now expects $41.1 billion to $41.9 billion of revenue, down from its previous range of $41.4 billion to $42.2 billion. It said it expects adjusted earnings per share to range from $6.15 to $6.30, which compares with prior guidance of $6.20 to $6.60.

Best Buy already increased prices on some items to blunt the costs from tariffs, with changes taking effect by mid-May, CEO Corie Barry said on a call with reporters. She called price hikes “the very last resort” after the company takes other steps to offset higher expenses. But she declined to specify which items are affected, citing competitive reasons.

First-quarter earnings reports have highlighted just how disruptive President Donald Trump‘s ever-evolving trade policy has been to many U.S. companies that rely on a global supply chain. Best Buy joins other companies like Abercrombie & Fitch and Macy’s in cutting its profit outlook this week due to tariffs. Other businesses, such as E.l.f. Beauty, have declined to provide full-year guidance because of the levies. 

On the call with reporters, Barry referred to the latest development that may change the backdrop once again: a federal trade court striking down many of Trump’s tariffs late Wednesday. And she said that ruling reinforces that the company has to stay nimble.

“If you look back over the last, let’s call it four months, the variety of points where there has been a change in approach to global trade, they are myriad,” she said. “And so what I really tried to work with the team on is to not actually overreact to any given moment in time, but instead to stay maniacally focused on our customers and ensure we are bringing the right assortment price and promotionality to them, whatever the backdrop.”

Here’s how the consumer electronics company did compared with what Wall Street was expecting for the company’s fiscal first quarter, based on a survey of analysts by LSEG:

• Earnings per share: $1.15 adjusted vs. $1.09 expected
• Revenue: $8.77 billion vs. $8.81 billion expected

Shares of Best Buy closed at $66.32, down about 7%.

Best Buy’s net income in the three-month period that ended May 3 declined about 18% to $202 million, or 95 cents per share, from $246 million, or $1.13 per share, in the year-ago period. Excluding one-time expenses, including restructuring charges for its Best Buy Health business, the company reported earnings of $1.15 per share.

First-quarter revenue dropped from $8.85 billion in the year-ago period.

Comparable sales, defined by Best Buy as revenue from online sales and stores open at least 14 months, dropped 0.7% year over year. In the U.S., comparable sales also fell 0.7% year over year as shoppers bought fewer home theaters, appliances and drones than a year ago. The company said weakness in those…