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Feb 01
Best Buy Q4 2025 Earnings Report
Best Buy reported a slight revenue decline and a decrease in GAAP EPS due to a goodwill impairment charge.
Key Takeaways
Best Buy's Q4 FY25 revenue declined to $13.95 billion, down from $14.65 billion in the previous year, primarily due to the extra week in Q4 FY24. The company reported a GAAP diluted EPS of $0.54, impacted by a $475 million goodwill impairment charge. Adjusted diluted EPS was $2.58, reflecting strong sales growth in computing and services, offset by declines in appliances and home theater. Operating income fell to $217 million from $561 million last year.
Revenue declined to $13.95 billion due to the extra week in Q4 FY24.
GAAP diluted EPS fell to $0.54 due to a goodwill impairment charge.
Adjusted diluted EPS of $2.58 exceeded expectations.
Domestic comparable sales increased by 0.2% while international grew by 3.8%.
Best Buy
Best Buy
Best Buy Revenue by Segment
Best Buy Revenue by Geographic Location
Revenue by Segment
Domestic segment Revenue
CapyFin.comInternational segment Revenue
CapyFin.comRevenue by Geographic Location
Domestic Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Best Buy expects flat to 2% comparable sales growth for FY26, with growth weighted toward the second half of the year.
Positive Outlook
- Expected FY26 revenue between $41.4B and $42.2B.
- Adjusted diluted EPS guidance of $6.20 to $6.60.
- Growth expected in computing, services, and Best Buy Marketplace.
- Continued investment in omnichannel retail strategy.
- Ongoing focus on cost management and operational efficiency.
Challenges Ahead
- Persistent inflation may impact consumer spending on big-ticket items.
- Currency fluctuations may continue to affect international revenue.
- Higher operating expenses due to incentive compensation and advertising.
- Potential macroeconomic headwinds influencing discretionary spending.
- Supply chain challenges and cost pressures on product sourcing.
Revenue & Expenses
Visualization of income flow from segment revenue to net income