Best Buy stock jumps 18% after strong quarter

Best Buy shares jumped 18% on Thursday after the electronics retailer reported stronger-than-expected first-quarter results. The company posted operating earnings per share of $1.28 and revenue of $8.94 billion, up 2% from a year earlier, while same-store sales also rose 2%.

Jefferies raised its price target to $89 from $83 and kept a Buy rating. Shares traded around $76 during Thursday’s session, below last October’s high near $84.

Best Buy maintained its full-year operating earnings guidance at $6.30 to $6.60 per share, compared with $6.43 in fiscal 2026. The company repurchased $202 million of stock in the quarter and said it plans an additional $300 million in buybacks by the end of the fiscal year.

The retailer reported sales increases in gaming, computing, mobile phones and services. Appliance sales lagged, which management attributed to weakness in the housing market. Executives said improved marketing and faster delivery helped performance in May and over the Memorial Day shopping period.

Incoming CEO Jason Bonfig acknowledged pressure from rising memory costs, saying the company saw staggered price increases in Q1 and expects average selling prices to rise into Q2, which could affect unit demand. He said Best Buy is working closely with vendors to limit the impact. Current CEO Corie Barry said customers have not been pulling purchases forward and that few shoppers express concern about memory prices; she added that buyers remain willing to make big-ticket purchases when they need to or when the technology is compelling.

Analysts pointed to growth opportunities outside traditional retail sales. Jefferies cited stronger comparable sales and momentum and highlighted the company’s third-party Marketplace, launched last August, and its digital advertising unit, Best Buy Ads, as potential sources of incremental margin. Wall Street forecasts for fiscal 2027 put earnings around $6.48 per share.

Best Buy pays a quarterly dividend of $0.96 per share, or $3.84 annually, producing a yield near 5%. The company’s combination of dividends and buybacks was noted by investors focused on income.