GameStop 2026 Q3 Earnings Net Income Surges 343.1% Despite Revenue Decline

GameStop (GME) reported mixed Q3 2026 results, missing revenue expectations but exceeding EPS forecasts. The company’s total revenue fell 4.6% year-over-year to $821 million, while net income surged 343.1% to $77.1 million. Management provided no explicit forward guidance, citing uncertainties in economic conditions and Bitcoin volatility.

Revenue

Hardware and accessories drove 44.7% of total sales at $367.4 million, though this segment declined from $417.4 million in the prior year. Software revenue contracted further to 24.1% of total sales ($197.5 million), down from 31.6% a year ago. Collectibles, however, showed resilience, contributing 31.2% of total revenue ($256.1 million), a 49.7% increase from $171.1 million in 2025 Q3.

Earnings/Net Income

GameStop’s EPS skyrocketed 325.0% to $0.17, driven by a 343.1% year-over-year net income jump to $77.1 million. The results reflect aggressive cost-cutting, with SG&A expenses declining $60.6 million year-over-year. The robust profitability growth underscores improved operational efficiency despite core business headwinds.

Price Action

The stock edged down 0.60% on the latest trading day but gained 1.32% weekly and 8.24% month-to-date, reflecting short-term volatility amid earnings uncertainty.

Post-Earnings Price Action Review

A strategy of buying GameStop shares on the earnings date and selling after 30 days has underperformed sharply over the past three years, yielding a -56.93% return versus a 72.49% benchmark. With a CAGR of -26.75% and a Sharpe ratio of -0.56, the strategy highlights poor risk-adjusted returns and no capital preservation.

CEO Commentary

CEO leadership emphasized progress in reducing SG&A expenses by $60.6 million and narrowing operating losses to a $41.3 million profit. Strategic divestitures of non-core operations (Canada and France) and strong cash reserves of $8.8 billion position the company to navigate supply chain risks and competitive pressures.

Guidance

GameStop did not provide forward-looking revenue or EPS targets, citing risks from economic volatility, Bitcoin price swings, and regulatory changes.

Additional News

Recent developments include a strategic shift toward collectibles and pop culture merchandise, with cash reserves expanding to $8.8 billion. The company’s Bitcoin holdings, valued at $519.4 million, remain a focal point amid debates over their long-term utility. Analysts remain divided on whether GameStop will pursue acquisitions or transform into a holding company.