# GameStop (GME) Q1 FY2026 earnings

Results filed 2026-06-02 for the quarter ended 2026-05-02. Source page: https://earnings.opennash.com/companies/gme/2026-q1/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1326380/000132638026000020/0001326380-26-000020-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Net sales | $835.3 million | grew 14% year-over-year | GAAP |
| Net income | $389.6 million | compared to net income of $44.8 million in the prior year's first quarter | GAAP |
| Diluted income per share | $0.66 | compared to $0.09 in the prior year's first quarter | GAAP |
| Adjusted diluted net income per share | 0.30 | compared to 0.17 in the prior year's first quarter | non-GAAP |
| Gross profit as a percentage of net sales | 40.7 | compared to 34.5 in the prior year's first quarter | GAAP |
| Operating income | $143.3 million | compared to an operating loss of $10.8 million in the prior year's first quarter | GAAP |
| Operating income as a percentage of net sales | 17.2 | compared to (1.5) in the prior year's first quarter | GAAP |
| Free cash flow | $333.1 | compared to $189.6 in the prior year's first quarter | non-GAAP |
| Adjusted operating income | $140.5 million | compared to an adjusted operating income of $27.5 million in the prior year's first quarter | non-GAAP |
| Cash, marketable securities, digital assets and related receivables, and collateral pledged for derivative asset | $9.7 billion |  |  |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Collectibles net sales | 348.9 | compared to 211.5 in the prior year's first quarter |
| Hardware and accessories net sales | $333.7 | compared to $345.3 in the prior year's first quarter |
| Software net sales | 152.7 | compared to 175.6 in the prior year's first quarter |
| United States net sales | $651.1 | compared to $537.5 in the prior year's first quarter |
| Australia net sales | $99.6 | compared to $81.9 in the prior year's first quarter |
| Europe net sales | $84.6 | compared to $74.8 in the prior year's first quarter |

## Key takeaways

1. **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.
2. **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.
3. **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.
4. **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.
5. **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.

## 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.