Best Buy reported revenue of $9.445 billion for Q3 2025, down 3.19% year over year and up 1.69% quarter over quarter, with a non-GAAP operating income rate of 3.7%. The company delivered a 60 bps YoY gross margin expansion largely driven by membership and services mix, while SG&A remained broadly flat on a revenue decline. Domestic comps declined 2.8-2.9%, notably softer than earlier guidance, amid softer macro demand and election-related distraction; management characterized the demand environment as volatile but improving into the holiday period. The company highlighted strength in domestic computing and tablets (comps +5.2% collectively; laptops up 7% YoY) and robust omni-channel capabilities (Q3 online revenue of $2.7B, 31% of domestic revenue). Management reaffirmed discipline around promotions to balance profitability with sales, while amplifying investments in member experiences, AI-enabled efficiency, and new customer experiences (e.g., AI gifting tools, enhanced delivery tracking, two-hour delivery windows). The Q4 guidance implies a range of flat to down 3% comps and a full-year non-GAAP operating margin of 4.1%-4.2%, with overall revenue of about $41.1-$41.5B and a 23.5% tax rate assumption. Catalysts cited include ongoing services margin expansion, continued ramp in warranty/standalone revenue, marketplace opportunity in the US (targeting mid-2025), and Canada expansion through Best Buy Express. Near-term risks include macro demand volatility, promotional elasticity variability, tariff dynamics, and the execution of store-format pilots. Given these dynamics, the investment thesis rests on margin resilience, ongoing services contributions, and scalable growth initiatives offset by a still uneven macro backdrop and execution risk in new formats and marketplace launches.