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Best Buy (BBY) is trading sharply higher after a clean 3Q26 beat-and-raise, with adjusted EPS and revenue both topping expectations and comps accelerating into the holiday season. The upside in revenue and comps was driven by robust performance in computing (seventh consecutive positive comp quarter), continued momentum in gaming (including Nintendo Switch 2) and mobile phones, as well as growth in wearables and headphones.

• Q3 enterprise comps of +2.7% outpaced last quarter’s +1.5% gain, reflecting strengthening demand and setting a constructive tone for the critical holiday period.
• Computing benefited from both the back-to-school season and an upgrade cycle tied to Windows 11 adoption after support ended for Windows 10, which also helped fuel nearly 30% yr/yr growth in desktop computers.
• Gaming and entertainment saw strong demand for handheld devices and AR glasses, while mobile phone sales benefited from expanded carrier partnerships and an improved in-store operating model with the largest wireless providers.
• Online revenue increased 3.5% on a comparable basis and represented 31.8% of domestic revenue, aided by higher app adoption, faster shipping speeds, and expanded delivery options, while stores also posted growth as traffic and conversion benefited from enhanced in-store experiences and vendor-staffed showcases.
• Best Buy Ads continued to scale and remained highly profitable, with Q3 growth in ad collections providing another tailwind to gross profit rate and complementing Marketplace as a key incremental earnings driver.
• On the expense side, adjusted operating income rate expanded 30 bps to 4.0%, helped by the higher revenue base, lower-than-planned SG&A (including efficiencies from AI-driven customer support and optimized fulfillment), and improved services profitability.
• Looking ahead, BBY nudged FY26 guidance higher, now calling for revenue of $41.65–$41.95 bln (up from a prior range that started at $41.1 bln), enterprise comparable sales growth of 0.5–1.2%, and an adjusted operating income rate of about 4.2%.

Briefing.com Analyst Insight:

BBY’s 3Q26 results check all the boxes investors wanted to see: a beat on EPS and revenue, an acceleration in comps, and a modestly higher full-year outlook that leans into tangible product-cycle and structural drivers rather than pure cost cutting. At the same time, some of the comp and earnings strength is tied to specific catalysts like the Windows 10 sunset, Switch 2 launch, and heavy vendor and promotional support, while hardware margins remain under pressure and big-ticket categories such as appliances and home theater are still sluggish. With the stock moving higher on this beat-and-raise print and FY26 EPS now targeted in the mid-$6s, the risk/reward looks improved, but the investment case still hinges on BBY successfully scaling its higher-margin Marketplace and retail media businesses and sustaining positive comps once the current wave of tech innovation normalizes, making the shares more suitable for investors comfortable with a still-competitive, promotion-heavy CE backdrop rather than momentum chasers.