Best Buy raises annual forecasts on AI-driven device upgrades

Best Buy has raised its full-year sales and profit forecasts, citing an artificial intelligence-driven hardware upgrade cycle. The electronics retailer expects annual revenue to reach between $42.3 billion and $42.8 billion, up from its previous guidance of $41.2 billion to $42.1 billion.

The company also increased its adjusted annual earnings per share (EPS) forecast to a range of $6.70 to $6.90, compared to the earlier estimate of $6.30 to $6.60. For the second quarter, Best Buy reported an adjusted EPS of $1.47, exceeding analyst expectations of $1.38 to $1.39.

Management noted that while consumers remain cautious with discretionary spending due to economic pressures, there is a growing willingness to replace older computers and smartphones with newer, AI-capable technology. Key sales drivers included computing, home theater, and emerging categories like AI glasses.

Additionally, the company is preparing for leadership changes. Veteran Jason Bonfig is set to succeed Corie Barry as CEO later this year, and Anne Bramman has been named the new finance chief.