Best Buy Co Inc (NYSE:BBY) reported better-than-expected earnings for its fiscal second quarter of 2025, despite a year-over-year decline in revenue.
The electronics retailer's revenue for the quarter ending August 3, 2024, came in at $9.29 billion, down 3.1% from the same period last year.
However, net income rose 6.2% to $291 million, and operating income increased by 10.1% to $383 million.
CEO Corie Barry highlighted the company's strong performance in its domestic tablet and computing categories, which posted a 6% growth in comparable sales.
“With our market position, expert sales associates and compelling merchandising, we capitalized on the demand driven by customers' desire to replace or upgrade their products combined with new innovation,” Barry said in a statement.
Best Buy is positioned for growth, analysts at Jefferies noted, with a 32% upside potential to a price target of $116.
Analysts believe the company is benefiting from a replacement cycle driven by aging devices purchased during COVID, alongside successful internal initiatives and strategic promotions. Strengthening vendor relationships, AI-driven labor efficiencies, and successful sales associate training are also contributing to Best Buy’s positive outlook, Jefferies noted.
Looking ahead, Best Buy revised its full-year revenue outlook to $41.3 billion to $41.9 billion, narrowing its previous forecast.
The company also raised its non-GAAP diluted EPS guidance to $6.10 to $6.35, up from the prior range of $5.75 to $6.20.
Shares of Best Buy skyrocketed 15.3% higher in New York Thursday.