Best Buy Co Inc ( BBY ) shares are trading lower in premarket on Tuesday.

The company reported a fourth-quarter sales decline of 4.8% year-on-year to $13.948 billion, beating the analyst consensus estimate of $13.702 billion.

Domestic revenue decreased 5.2% Y/Y and International revenue decreased 0.2%. Enterprise comparable sales increased 0.5%.

Gross profit fell 2.8% Y/Y to $2.9 billion, with the margin expanding 40 basis points to 20.9%. Operating margin contracted 220 basis points to 1.6%. Operating income for the quarter fell 61.3% to $217 million.

Non-GAAP EPS of $2.58 beat the analyst consensus of $2.40.

Best Buy ( BBY ) held $1.57 billion in cash and equivalents as of February 1. Operating cash flow for the twelve months totaled $2.1 billion.

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In the fourth quarter of FY25, the company returned a total of $415 million to shareholders through dividends of $200 million and share repurchases of $215 million.

The company’s board of directors approved a 1% increase in the regular quarterly dividend to $0.95 per share. The regular quarterly dividend will be payable on April 15 to shareholders of record as of the close of business on March 25.

“I am pleased to report better-than-expected sales for the fourth quarter driven by strong growth in computing as well as improved sales performance in other categories,” said Corie Barry, Best Buy ( BBY ) CEO.

Outlook: Best Buy ( BBY ) sees FY26 adjusted EPS of $6.20 – $6.60 versus the estimate of $6.55.

Best Buy ( BBY ) expects FY26 revenue of $41.4 billion – $42.2 billion versus an estimate of $41.82 billion. The company expects comparable sales of 0.0% to 2.0% and capital expenditures of $700 million – $750 million.

The company’s FY26 guidance does not include the impact of recently implemented or proposed tariffs. The company expects to spend approximately $300 million on share repurchases during FY26.

Matt Bilunas, Best Buy CFO, said, “As we enter FY26, we believe consumer behavior will be largely similar to last year – remaining resilient but still dealing with high inflation that is driving expenses up across their lives, making them value focused and thoughtful about big ticket purchases..This leads to our comparable sales guide in the range of flat to 2% growth for the year, with growth weighted more to the second half of the year based on the timing of product launches and initiatives.”

For the first quarter of FY26, the company expects comparable sales to be slightly down to last year and adjusted operating income rate to be approximately 3.4%.

Price Action: BBY shares are trading lower by 5.52% at $81.95 in premarket at last check Tuesday.

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