GameStop 2026 Q3 Earnings 343.1% Net Income Surge, Misses Revenue Estimates

GameStop (GME) reported mixed Q3 2026 results, with revenue declining 4.6% year-over-year to $821 million but net income surging 343.1% to $77.1 million. The company missed revenue expectations by 16.8% while exceeding EPS forecasts by 20%. No forward guidance was provided, and CEO commentary was absent in the SEC filing.

Revenue

GameStop’s total revenue fell to $821 million in Q3 2026, a 4.6% decline from $860.3 million in the prior year. Hardware and accessories remained the largest revenue driver at $367.4 million, while collectibles contributed $256.1 million. Software sales dipped to $197.5 million, reflecting weaker demand compared to $271.8 million in the same period last year.

Earnings/Net Income

GameStop’s earnings demonstrated strong growth, with EPS rising 325% to $0.17 from $0.04 in 2025 Q3. Net income surged to $77.1 million, a 343.1% increase, driven by reduced SG&A expenses and improved operating margins. The substantial EPS growth underscores improved profitability despite revenue challenges.

Post-Earnings Price Action Review

Following the earnings release, GameStop’s stock price edged down 0.60% in the latest trading day but gained 1.32% during the most recent full trading week. The stock also rose 8.24% month-to-date, indicating mixed investor sentiment. While the revenue miss pressured short-term performance, the earnings beat and strong net income growth provided some support.

CEO Commentary

No CEO commentary was explicitly provided in the SEC 8-K filing. The document outlines financial results, non-GAAP metrics, and cautionary statements about forward-looking risks but does not include direct quotes or remarks from the CEO.

Guidance

The company did not disclose specific forward-looking guidance (e.g., revenue, EPS, or operational expectations) in the SEC 8-K filing. The cautionary statement highlights risks affecting future performance, such as economic, competitive, and operational uncertainties, but no explicit guidance is outlined. The document directs readers to the Form 10-Q for additional details.

Additional News

Recent non-earnings developments include insider sales and Bitcoin holdings. General Counsel Mark Haymond Robinson sold 4,449 shares at $27.58 on October 2. GameStop’s cash position remains robust, with $8.8 billion in cash, cash equivalents, and marketable securities as of Q3 2026. Bitcoin holdings increased to $519.4 million, up from $434 million in the prior quarter. Analysts remain divided on the company’s long-term strategy, with some suggesting potential acquisitions or a shift toward a holding company model.