Matti (on for Robby Ohmes)'s questions to Best Buy Co Inc (BBY) leadership • Q4 2025
Question
An analyst on for Robby Ohmes asked about the drivers behind the nearly 10% domestic services comparable sales growth in Q4, particularly stand-alone warranty sales, and the outlook for the services category in fiscal 2026. They also requested color on the Q1 gross margin outlook.
Answer
CFO Matthew Bilunas explained that the Q4 services growth was broad-based, driven by paid memberships, stand-alone warranties, and installation services, all benefiting from improved attachment trends throughout the year. For fiscal 2026, he expects services revenue growth to be in line with total enterprise growth. For Q1, the gross profit rate is expected to be flat to up 20 basis points, with continued favorability from services and membership offerings partially offset by slight pressure from product margins and Best Buy Health.