Logo of Best Buy displayed outside a Best Buy store in Edmonton, Alberta, Canada, on March 22, 2025.
Artur Widak | Nurphoto | Getty Images
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 to prior guidance of $6.20 to $6.60.
In a news release, CFO Matt Bilunas said the company’s outlook anticipates that tariffs will stay at the current levels and there will be “no material change in consumer behavior from the trends we have seen in recent quarters.”
“As you can imagine, and based on our history, we will continue to scenario-plan and adjust with agility as the situation evolves,” he said.
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
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.
First-quarter revenue dropped from $8.85 billion in the year-ago period.
Best Buy is a closely watched name when it comes to the impact of tariffs since it sells iPhones, TVs, laptops, kitchen appliances and many other consumer electronics that tend to be made in China or other parts of Asia. CEO Corie Barry said in March that China and Mexico are the company’s top two sources of merchandise, with about 55% and 20% of its products coming from those countries, respectively.
The U.S. currently has a 30% tariff on imports from China, while goods compliant with the United States-Mexico-Canada Agreement are exempt from the Trump administration’s 25% duty on Mexico. It is unclear now how those rates will change after a federal trade court struck down many of Trump’s tariffs on Wednesday.
As of Wednesday’s close, shares of Best Buy are down nearly 17% so far this year. That trails behind the roughly flat performance of the S&P 500 year to date. Shares of Best Buy closed at $71.52 on Wednesday, bringing the company’s market value to $15.14 billion.
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