Why Best Buy Stock Tumbled on Thursday

Key Points

• A double beat on analyst estimates didn't compensate for tariff uncertainty.

• On a brighter note, the retailer managed to grow its revenue and post the highest "comps" in years.

• 10 stocks we like better than Best Buy ›

It's safe to say many investors felt that Best Buy (NYSE: BBY) stock wasn't an especially good buy on Thursday. Although the company posted second quarter of fiscal 2026 results that topped analyst estimates, it signaled that it remains vulnerable to the tariffs being imposed by the Trump administration.

As a result, its shares lost nearly 4% of their value that trading session, while the S&P 500 (SNPINDEX: ^GSPC) inched up by 0.3%.

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Thinking about tariffs

Best Buy's revenue for the period was slightly under $9.44 billion, which was up from the nearly $9.29 billion in the same quarter of fiscal 2025. That improvement was on the back of a 1.6% year-over-year rise in comparable sales -- the company's highest growth rate in three years. This, in turn, was fueled by a relatively sharp (5%) increase in online commerce.

Image source: Getty Images.

However, net income on both a generally accepted accounting principles (GAAP) and non-GAAP (adjusted) basis went south during the quarter. Under the former standard, it was $186 million, well down from the $291 million of fiscal 2025's second frame. On an adjusted, per-share basis, it slid to $1.28 from $1.34.

At least Best Buy topped the consensus analyst estimates. On average, pundits tracking the retailer's stock were estimating it would book $9.23 billion in revenue, and a $1.22 per share figure for adjusted net income.

In the conference call discussing the quarter, company CEO Corie Barry intimated that the tariffs, which have affected pricing, are expected to remain an issue.

"Given the uncertainty of potential tariff impacts in the back half, both on consumers overall as well as our business, we feel it is prudent to maintain the annual guidance we provided last quarter," she said.

In-line guidance

That guidance calls for revenue of $41.1 billion to $41.9 billion this fiscal year, and adjusted net income of $6.15 to $6.30. The consensus analyst top-line estimate is a touch over $41.4 billion, while that for adjusted profitability stands at $6.19.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Best Buy. The Motley Fool has a disclosure policy.