Best Buy Stock Falls Despite Strong Q2 Earnings

Best Buy's (BBY) stock took a 3% hit in premarket trading after delivering strong Q2 earnings and raising its annual outlook. The company's adjusted quarterly earnings of $1.47 per share surpassed analyst expectations, with revenue reaching approximately $9.8 billion, a 4.1% increase from the previous year. Comparable store sales also rose 4.1%, more than double the expansion rate in the prior-year period.

Departing CEO Corie Barry highlighted the strong performance of Best Buy Ads and its Marketplace advertising platform as key contributors to the company's success. Management attributed much of the momentum to an AI-fueled hardware replacement cycle, with consumers upgrading legacy computers and mobile devices to newer AI-enabled models.

The pullback in BBY stock comes after a nearly 31% gain in 2026, which significantly outpaced the S&P 500's 12% advance during the same period. Despite the improved outlook, analysts remain cautious, with only four of 28 monitored by FactSet maintaining buy recommendations on the equity.