Best Buy (BBY) Q4 2025 earnings summary

Executive summary

• Q4 delivered better-than-expected sales and earnings, with enterprise comparable sales up 0.5% and revenue of nearly $14 billion, driven by strong growth in computing and improved performance in other categories.

• Adjusted diluted EPS for Q4 was $2.58, while GAAP diluted EPS was $0.54 due to a $2.02 per share goodwill impairment.

• Digital sales accounted for almost 40% of total domestic sales in Q4, with strong app engagement and 20% traffic growth.

• Investments in customer experience, digital, and labor led to improved Net Promoter Scores and lowest employee turnover in six years.

• Quarterly dividend increased 1% to $0.95 per share; $1.3 billion returned to shareholders in FY25 via dividends and share repurchases.

Financial highlights

• Q4 FY25 revenue was $13.95 billion, down from $14.65 billion in Q4 FY24, mainly due to the extra week in the prior year.

• Adjusted operating income rate for Q4 was 4.9%, down 10 basis points year-over-year.

• Domestic gross profit rate increased to 20.9%, up 50 basis points year-over-year.

• International gross profit rate rose to 21.4%, up 40 basis points year-over-year.

• Cash from operations for FY25 was $2.1 billion, up from $1.47 billion in FY24.

Outlook and guidance

• Fiscal 2026 guidance: enterprise revenue of $41.4–$42.2 billion, comparable sales flat to up 2%, adjusted operating income rate of 4.2%–4.4%, and adjusted EPS of $6.20–$6.60.

• Capital expenditures expected at $700–$750 million; $300 million planned for share repurchases, weighted to the second half.

• Q1 FY26 comparable sales expected to be slightly down, with adjusted operating income rate at 3.4%.

• Guidance excludes impact of recently enacted tariffs; a 10% China tariff could negatively impact comparable sales by about one point, mainly in Q2–Q4.