Shares rose 8 percent in premarket trading.
The electronics chain says quarterly profit rose to $779 million, or $1.82 per share. Revenue increased 12 percent to $16.55 billion. Higher electronics sales were partly offset by lower selling prices.
Analysts predicted a profit of $1.79 on revenue of $16.08 billion
The company says it expects a profit of $3.45 to $3.60 per share in the fiscal year ending in February 2011. That is better than the $3.37 analysts predict.
Best Buy has gained market share since rival Circuit City liquidated last year, but competition with discounters and online retailers remains tough.
