Best Buy's (BBY) strong fiscal Q2 results contrasted with a cautious outlook for the rest of the year, as the electronics retailer expects computer demand to moderate after a temporary Windows 10-related boost, Wedbush Securities said Friday in a report.

Best Buy delivered broad-based strength in Q2, with comparable sales rising 4.1%, well above consensus and driven by gains in computing, mobile phones, home theater and emerging products such as AI glasses, Wedbush said. Adjusted EPS of $1.46 also topped expectations, though margins were softer because higher incentive compensation diluted the beat, the report said.

Wedbush raised its fiscal 2027 EPS estimate to $7.65 from $7.27, saying the forecast appears achievable, though the stock's outlook is balanced given uncertain consumer response to rising computing prices and potential tariff-refund-driven promotions during the holiday season.

Wedbush reiterated its neutral rating on Best Buy stock and its $85 price target.

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