GME posts record quarterly net income, beats EPS estimates, and launches $2B buyback
GameStop Corp. (NYSE: GME) shares jumped roughly 9% in after-hours trading Tuesday after the video game retailer reported a blowout first quarter, posting its highest quarterly net income in company history and handily beating Wall Street estimates.
For the 13 weeks ended May 2, 2026, GameStop reported net income of $389.6 million, or $0.66 per diluted share on a GAAP basis, compared with net income of just $44.8 million in the year-ago period. On an adjusted basis, the company earned $0.30 per diluted share — nearly double the lone analyst consensus estimate of $0.16 tracked by Yahoo Finance.
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Net sales climbed 14% year-over-year to $835.3 million, up from $732.4 million in Q1 fiscal 2025, driven primarily by a surge in collectibles, which accounted for 41.8% of total sales compared to just 28.9% a year ago. Hardware and software categories, by contrast, continued to decline.
Operating income swung dramatically to a record $143.3 million from an operating loss of $10.8 million in the prior-year quarter, as SG&A expenses fell to $201.6 million from $228.1 million.
GameStop’s war chest also expanded significantly. Total cash, marketable securities, digital assets, and related receivables reached $9.7 billion at quarter-end, including $8.4 billion in cash and marketable securities — up from $6.4 billion a year earlier.
Adding further fuel to investor enthusiasm, GameStop’s board unanimously approved a new $2.0 billion share repurchase authorization through June 2029, replacing a years-old 2019 program.
Adjusted EBITDA reached $163.4 million, versus $38.6 million in Q1 2025, while free cash flow came in at $333.1 million.
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