Best Buy Trims 2026 Outlook Despite Q1 Beat, Shares Plunge 9%

Best Buy (NYSE:BBY) shares dropped more than 9% intra-day today after the company lowered its full-year guidance for fiscal 2026, citing tariff-related pressures, despite topping Q1 estimates.

The retailer reported Q1 EPS of $1.15, beating the $1.07 consensus, while revenue declined 1% year-over-year to $8.77 billion, narrowly ahead of forecasts. Comparable sales fell 0.7%, a milder drop than last year’s 6.1% but slightly below expectations. Gross margin remained stable at 23.4%.

However, Best Buy cut its 2026 EPS guidance to $6.15–$6.30 (from $6.20–$6.60) and lowered its revenue outlook to $41.1–$41.9 billion (from $41.4–$42.2 billion), both slightly under Street expectations. It now expects 2026 comparable sales to range between a 1% decline and a 1% increase, down from prior guidance of flat to 2% growth.