GameStop (GME) · Retail
GameStop Q1 FY2026 earnings: summary, key numbers & outlook
Results filed 2 Jun 2026 · Quarter ended 2 May 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
GameStop reported the highest quarterly net income in its history of $389.6 million, with net sales of $835.3 million and operating income of $143.3 million for the first quarter ended May 2, 2026.
GameStop's first-quarter net sales were $835.3 million, compared with $732.4 million a year earlier. The company said net sales grew 14%, driven by collectibles. Operating income was $143.3 million, versus an operating loss of $10.8 million a year ago. Net income was $389.6 million, helped by a $268.4 million unrealized gain on a derivative asset tied to eBay shares.
The release gave no numerical guidance. The board approved a discretionary $2.0 billion share repurchase authorization through June 2, 2029. The release also lists the proposed acquisition of eBay Inc. among its risk factors. The main tension is that collectibles grew while hardware and software sales fell. Most of the net income came from non-operating items, not from selling products.
Key numbers
- Net sales · GAAP
- $835.3 million
- Net income · GAAP
- $389.6 million
- Diluted income per share · GAAP
- $0.66
- Adjusted diluted net income per share · non-GAAP
- 0.30
- Gross profit as a percentage of net sales · GAAP
- 40.7
- Operating income · GAAP
- $143.3 million
- Operating income as a percentage of net sales · GAAP
- 17.2
- Free cash flow · non-GAAP
- $333.1M
grew 14% year-over-year
compared to net income of $44.8 million in the prior year's first quarter
compared to $0.09 in the prior year's first quarter
compared to 0.17 in the prior year's first quarter
compared to 34.5 in the prior year's first quarter
compared to an operating loss of $10.8 million in the prior year's first quarter
compared to (1.5) in the prior year's first quarter
compared to $189.6 in the prior year's first quarter
| Segment or metric | Value | Change |
|---|---|---|
| Collectibles net sales | $348.9M | compared to 211.5 in the prior year's first quarter |
| Hardware and accessories net sales | $333.7M | compared to $345.3 in the prior year's first quarter |
| Software net sales | $152.7M | compared to 175.6 in the prior year's first quarter |
| United States net sales | $651.1M | compared to $537.5 in the prior year's first quarter |
| Australia net sales | $99.6M | compared to $81.9 in the prior year's first quarter |
| Europe net sales | $84.6M | compared to $74.8 in the prior year's first quarter |
Where each number comes from
- Net sales: “Net sales were $835.3 million for the first quarter, compared to $732.4 million in the prior year's first quarter.”
- Net income: “Net income was $389.6 million for the first quarter, compared to net income of $44.8 million for the prior year’s first quarter.”
- Diluted income per share: “Net income per share: Basic income per share | $0.87 | $0.10 Diluted income per share | $0.66 | $0.09 Weighted-average common shares outstanding:”
- Adjusted diluted net income per share: “Adjusted net income per share Basic | $0.40 | $0.19 Diluted | 0.30 | 0.17 Number of shares used in adjusted calculation”
- Gross profit as a percentage of net sales: “Percentage of Net sales: Net sales | 100.0% | 100.0% Cost of sales | 59.3 | 65.5 Gross profit | 40.7 | 34.5 Selling, general and administrative expenses | 24.1 | 31.1”
- Operating income: “Operating income was $143.3 million for the first quarter, the highest first quarter operating income in GameStop's history, compared to an operating loss of $10.8 million in the prior year's first quarter.”
- Operating income as a percentage of net sales: “Selling, general and administrative expenses | 24.1 | 31.1 Asset impairments | (0.6) | 4.8 Operating income (loss) | 17.2 | (1.5) Interest income, net | (10.0) | (7.8)”
- Free cash flow: “Net cash flows provided by operating activities | $337.6 | $192.5 Capital expenditures | (4.5) | (2.9) Free cash flow | $333.1 | $189.6”
- Collectibles net sales: “Hardware and accessories(1) | $333.7 | 39.9% | $345.3 | 47.1% Software (2) | 152.7 | 18.3% | 175.6 | 24.0% Collectibles (3) | 348.9 | 41.8% | 211.5 | 28.9%”
- Hardware and accessories net sales: “Hardware and accessories(1) | $333.7 | 39.9% | $345.3 | 47.1% Software (2) | 152.7 | 18.3% | 175.6 | 24.0% Collectibles (3) | 348.9 | 41.8% | 211.5 | 28.9%”
- Software net sales: “Hardware and accessories(1) | $333.7 | 39.9% | $345.3 | 47.1% Software (2) | 152.7 | 18.3% | 175.6 | 24.0% Collectibles (3) | 348.9 | 41.8% | 211.5 | 28.9%”
- United States net sales: “UnitedStates | Australia | Europe | Total As of and for the three months ended May 2, 2026 Net sales | $651.1 | $99.6 | $84.6 | $835.3”
- Australia net sales: “UnitedStates | Australia | Europe | Total As of and for the three months ended May 2, 2026 Net sales | $651.1 | $99.6 | $84.6 | $835.3”
- Europe net sales: “UnitedStates | Australia | Europe | Total As of and for the three months ended May 2, 2026 Net sales | $651.1 | $99.6 | $84.6 | $835.3”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q1 FY2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $835.3M | +14.0% | −24.4% |
| Operating income | $143.3M | — | +6.0% |
| Net income | $389.6M | +769.6% | +204.6% |
| Diluted EPS | $0.66 | +633.3% | — |
| Free cash flow | $332.9M | +75.6% | +77.6% |
| Gross margin | 40.7% | +6.2 pts | +5.7 pts |
| Operating margin | 17.2% | +18.7 pts | +5.0 pts |
Calculated by code from XBRL, not by the model.
Key takeaways
Record net income was helped by non-operating gains
Net income was $389.6 million, but the unrealized gain on derivative asset, net was $268.4 million and interest income, net was $83.7 million. Operating income was $143.3 million.
Collectibles drove growth while core categories fell
Collectibles net sales were $348.9 million versus $211.5 million a year ago, while hardware and accessories fell to $333.7 million from $345.3 million and software fell to $152.7 million from $175.6 million.
Operating profitability improved sharply year over year
Gross profit was 40.7% of net sales versus 34.5%, and SG&A expenses were $201.6 million versus $228.1 million. Operating income was $143.3 million compared to an operating loss of $10.8 million.
Balance sheet holds $9.7 billion alongside larger debt
The company held $9.7 billion of cash, marketable securities, digital assets and related receivables, and collateral pledged for derivative asset. Long-term debt was $4,166.1 million versus $1,480.7 million a year earlier.
New $2.0 billion buyback replaces 2019 authorization
On June 2, 2026, the board approved a discretionary $2.0 billion share repurchase authorization through June 2, 2029. It replaces the prior authorization from March 2019.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q3 FY24 | $860.3M |
| Q4 FY24 | $1.3B * |
| Q1 FY25 | $732.4M |
| Q2 FY25 | $972.2M |
| Q3 FY25 | $821.0M |
| Q4 FY25 | $1.1B * |
| Q1 FY26 | $835.3M |
| Q2 FY26 | $790.2M |
Data
| Q3 FY24 | $0.04 |
| Q1 FY25 | $0.09 |
| Q2 FY25 | $0.31 |
| Q3 FY25 | $0.13 |
| Q1 FY26 | $0.66 |
| Q2 FY26 | $0.51 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q3 FY24 | -3.9% |
| Q4 FY24 | 6.2% |
| Q1 FY25 | -1.5% |
| Q2 FY25 | 6.8% |
| Q3 FY25 | 5.0% |
| Q4 FY25 | 12.2% |
| Q1 FY26 | 17.2% |
| Q2 FY26 | 20.3% |
Data
| Q3 FY24 | $20.0M |
| Q4 FY24 | $158.8M |
| Q1 FY25 | $189.6M |
| Q2 FY25 | $113.3M |
| Q3 FY25 | $107.0M |
| Q4 FY25 | $187.4M |
| Q1 FY26 | $332.9M |
| Q2 FY26 | $60.7M |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were GameStop's first quarter 2026 results?
Net sales were $835.3 million, up 14% year-over-year, driven by collectibles. Net income was $389.6 million, the highest quarterly net income in the company's history, and operating income was $143.3 million.
How much of the profit came from operations versus other items?
Operating income was $143.3 million. Net income of $389.6 million also included a $268.4 million unrealized gain on a derivative asset tied to eBay shares and $83.7 million of net interest income. Adjusted net income, which excludes the derivative gain and other items, was $179.3 million.
Which product categories grew or shrank?
Collectibles net sales were $348.9 million versus $211.5 million a year earlier. Hardware and accessories were $333.7 million versus $345.3 million, and software was $152.7 million versus $175.6 million.
How much cash does GameStop have and what is the new buyback?
Cash, marketable securities, digital assets and related receivables, and collateral pledged for a derivative asset totaled $9.7 billion. The board approved a discretionary $2.0 billion repurchase authorization through June 2, 2029.
Did GameStop give financial guidance for the next quarter?
No numerical guidance appears in the release. It lists risks including the proposed acquisition of eBay Inc., the value of investment holdings, and dependence on trading cards and collectibles.
Documents
SEC filing