Gamestop Corporation - Class A
Q2 2027 Earnings
Market Reaction
Did GME Beat Earnings? Q2 2027 Results
GameStop Corp. delivered a mixed-but-solid second quarter for fiscal 2027, matching the Wall Street consensus EPS estimate of $0.27 on adjusted earnings while posting revenue of $790.20 million, clearing the $756.85 million consensus by 4.41%, even as sales fell 18.7% year-over-year amid the absence of a major console launch and ongoing store closures. The result extends the company's streak of meeting or beating consensus EPS estimates to four consecutive quarters. The headline story, however, is the rapid transformation of GameStop's revenue mix: Collectibles surged 57% year-over-year to $356.30 million and now account for 45.1% of total net sales, effectively displacing Video Games as the company's primary revenue driver and propelling gross margin to 43.7% from 29.1% a year ago. Adjusted EBITDA more than doubled to $174.00 million from $75.70 million, reflecting the favorable mix shift alongside leaner SG&A of $187.10 million. Confidence in the momentum prompted management to raise its fiscal 2026 Adjusted EBITDA outlook to in excess of $650.00 million, up from a prior target of in excess of $600.00 million.
- Collectibles net sales grew 57% year over year to $356.3 million, now representing 45.1% of net sales
- Gross margin expanded to 43.7% from 29.1% driven by collectibles mix shift
- SG&A expenses reduced to $187.1 million from $218.8 million through planned store closures and cost discipline
- Adjusted EBITDA more than doubled to $174.0 million from $75.7 million
- Gain on derivative asset of $166.3 million and unrealized gain on equity investment of $72.1 million boosted GAAP net income
Forward Guidance & Outlook
For fiscal year 2026 (ending January 30, 2027), GameStop raised its Adjusted EBITDA outlook to in excess of $650 million, up from its prior outlook of in excess of $600 million provided on June 26, 2026. Adjusted EBITDA for the first six months of fiscal year 2026 was $339.7 million.
GME YoY Financials
GME Revenue by Segment
GME Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.