Best Buy (BBY) Q4 2025 Earnings Reveal Surprising Growth and Future Prospects!

"Best Buy Q4 2025 Earnings Show Unexpected Growth!"

Best Buy reported strong fourth-quarter earnings but expects price increases for consumers due to new tariffs on imports from China and Mexico.

Rachel Patel4 March 2025Last Update : 7 hours ago

www.cnbc.com

Best Buy reported fourth-quarter earnings and revenue that exceeded Wall Street expectations on March 4, 2025, in East Rutherford City. However, CEO Corie Barry warned that rising tariffs imposed by President Donald Trump on imports from China and Mexico are likely to increase prices for U.S. consumers.

6 Key Takeaways

Best Buy's earnings exceeded Wall Street expectations.
Tariffs expected to raise consumer prices.
Fourth-quarter revenue declined 4.8% year-over-year.
Comparable sales rose 0.5% year-over-year.
Fiscal 2026 revenue guidance projected stable growth.
High inflation affects consumer spending behavior.

Fast Answer: Best Buy’s fourth-quarter earnings surpassed expectations, with adjusted earnings per share at $2.58 compared to the $2.40 forecast. Revenue was $13.95 billion, exceeding the $13.70 billion estimate. However, the company anticipates price increases for consumers due to new tariffs on imports from China and Mexico.

Best Buy’s earnings report for the fourth quarter of fiscal 2025 revealed a net income of $117 million, or 54 cents per share, down from $460 million, or $2.12 per share, in the same quarter last year. The adjusted earnings of $2.58 per share were higher than analysts’ expectations. Revenue for the quarter was $13.95 billion, a decline of 4.8% from $14.65 billion a year earlier. Comparable sales increased by 0.5% year over year, with U.S. sales rising 0.2%.

Key financial metrics from the report include:

Earnings per share: $2.58 adjusted vs. $2.40 expected
Revenue: $13.95 billion vs. $13.70 billion expected

For the full fiscal year 2025, Best Buy reported revenue of $41.53 billion, down 4.4% from $43.45 billion in fiscal 2024. The company noted that the fiscal 2025 period had one fewer week than the previous year, which contributed to the revenue decline. Looking ahead, Best Buy projected revenue for fiscal 2026 to be between $41.4 billion and $42.2 billion, with comparable sales growth expected to range from 0% to 2% year over year.

CEO Corie Barry emphasized the critical role of trade in Best Buy’s operations, stating that 60% of its goods come from China and Mexico is the second-largest source. The new tariffs, which include a 10% tariff on Chinese goods and 25% duties on products from Mexico and Canada, are expected to impact pricing for consumers. CFO Matt Bilunas noted that consumer behavior is likely to remain resilient despite high inflation, affecting spending on big-ticket items.

Notice: Canadian consumers should be aware of potential price increases for electronics due to the tariffs imposed on imports from Mexico and China, which may affect product availability and costs in Canada.

In summary, Best Buy’s fourth-quarter performance showed stronger earnings than expected, but the company faces challenges ahead due to rising tariffs that may lead to increased prices for consumers. The outlook for fiscal 2026 suggests cautious growth amid ongoing economic pressures.