The company posted adjusted earnings per share of $1.34, surpassing the $1.20 consensus estimate from analysts polled by FactSet. Revenue came in at $9.58 billion, slightly above expectations, driven by resilient demand for laptops, home theater systems, and appliances. Same-store sales declined 2.3% year-over-year, an improvement from the 6.2% drop in the previous quarter, as consumers increasingly replaced pandemic-era devices and responded to promotional offers.

Best Buy now expects full-year adjusted earnings in the range of $6.10 to $6.30 per share, up from its prior forecast of $5.70 to $6.10. The company also slightly raised its comparable sales outlook, projecting a decline of 3% to 1.5%, compared with the earlier estimate of a 4.5% to 2% drop.

“We saw steady demand across key categories and continued growth in our paid membership program,” CEO Corie Barry said in a statement. “Our teams executed well on cost discipline while investing in the customer experience, which gives us confidence in the second half of the year.”

The stronger performance comes as Best Buy has been streamlining operations, closing underperforming stores, and expanding its Geek Squad services and totaltech membership. The company also benefited from improved supply chain conditions and a stabilizing promotional environment, which helped margins.

However, some analysts caution that the raised forecast may be overly optimistic given persistent inflation and shifting consumer priorities toward experiences rather than goods. “Best Buy is seeing a bounce, but the macro backdrop remains uncertain,” said retail analyst Neil Saunders of GlobalData. “The holiday season will be the real test of whether this momentum is sustainable.”

Shares of Best Buy rose 3.5% in premarket trading following the announcement, reflecting investor optimism that the electronics retailer can maintain its recovery trajectory amid a mixed retail landscape.