GameStop’s Next Big Move Could Matter More Than Its Earnings
Ryan Cohen is sitting on a war chest worth billions, and what he chooses to do with it before Tuesday's close could matter far more to GameStop investors than any revenue line in the…
Coverage ended
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Live: GameStop (GME) Earnings Out Soon, Will The Stock Move Higher?
Live Updates
Newest firstReaction on the quarter
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Bullish: Fortress balance sheet + Bitcoin optionality
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Bearish: Core gaming hardware/software in secular decline
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Neutral: Absent strategy from management limits conviction.
Guidance Est.
GameStop did not issue forward guidance in the release. Analysts had been modeling FY2026 revenue of $3.52B and EPS of $0.73; no formal update means Street models stay in place.
| Metric | Prior Consensus | New Guidance | Status |
|---|---|---|---|
| FY26 Revenue | $3.52B | N/A | ⚖️ Flat |
| FY26 EPS | $0.73 | N/A | ⚖️ Flat |
Key Metrics
Collectibles now make up nearly a quarter of sales, SG&A leverage drove profitability, and the fortress balance sheet provides both security and optionality.
| KPI | Q2 2025 | Q2 2024 | YoY Change |
|---|---|---|---|
| Net Sales | $972.2M | $798.3M | +21.8% |
| Gross Margin | 29.1% | 31.2% | –210 bps |
| SG&A | $218.8M | $270.8M | –19% |
| Net Income | $168.6M | $14.8M | >10x |
| Collectibles Mix | 23.4% | 17.5% | +590 bps |
| Cash & Securities | $8.7B | $4.2B | +106% |
| Bitcoin Holdings | $528.6M | N/A | New |
GameStop Beats and Stock Up 2.4%
| Metric | Reported | Consensus | Beat/Miss |
|---|---|---|---|
| Revenue | $972.2M | $823.3M | ✅ Beat |
| EPS (Adj.) | $0.31 | $0.16 | ✅ Beat |
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Guidance: Not provided (no update in release).
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Analyst Take: GameStop crushed expectations with revenue up 22% YoY and adjusted EPS nearly doubling Street forecasts. Massive cash pile ($8.7B) and $528M Bitcoin position give optionality, but the print raises fresh volatility questions given digital asset exposure.
Stock up 2.4% so far and more movement likely.
Earnings coming soon
GameStop will close the day out on a high note before earnings are released. Despite being down 23% in 2025, the stock has creeped higher the past month. Numbers will be coming shortly as well as our input on this past quarter.
How GME Performed After Recent Earnings
| Quarter | EPS Surprise | 1-Day Move | 7-Day Move | 14-Day Move |
|---|---|---|---|---|
| Q1 2025 | +325% | –5.31% | –22.19% | –21.46% |
| Q4 2024 | +275% | +1.35% | –3.81% | –3.54% |
| Q3 2024 | +300% | +0.29% | –1.37% | +3.34% |
| Q2 2024 | +112% | –1.91% | +3.86% | –8.47% |
Live coverage has ended. The full story is below.
Full Coverage
The story so farGameStop (NYSE: GME | GME Price Prediction) reports fiscal Q2 results after the close. The Q1 release in June highlighted cost cuts, divestitures, and a surprising swing to adjusted profitability despite ongoing revenue erosion. For Q2, attention shifts to whether these trends can continue against a shrinking top line, as well as how management positions the business heading into the holiday season.
Estimates Snapshot
- Revenue: $823.25 million
- EPS (Normalized): $0.16
- FY 2026 Revenue: $3.52 billion
- FY 2026 EPS: $0.73
- FY 2027 Revenue: $3.14 billion
- FY 2027 EPS: $0.44
Consensus implies 3% revenue growth YoY versus $0.01 EPS in Q2 2024. For FY26, revenue is expected to decline nearly 8% YoY, but EPS is forecast to more than double on efficiency gains.
Key Areas to Watch
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SG&A leverage – Q1 SG&A dropped to $228.1M from $295.1M last year, enabling $27.5M in adjusted operating income. Investors want to see if this leaner cost base holds.
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Category mix – Collectibles rose to 28.9% of sales in Q1, while hardware and software shrank. Mix will be key to sustaining gross margin.
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Restructuring progress – The Canada divestiture closed in May, France remains classified as held-for-sale. Investors will look for any further portfolio moves.
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Cash and Bitcoin – Cash and equivalents totaled $6.4B at Q1 close, but management disclosed purchases of 4,710 Bitcoin during May–June. This adds balance sheet volatility.
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Inventory and holiday setup – Inventory was cut sharply to $421M from $676M LY, signaling caution but raising questions on readiness for holiday demand.
Contact [email protected] for any questions or corrections.
Joel South
Joel South covers large-cap stocks, dividend investing, and major market trends, with a focus on earnings analysis, valuation, and turning complex data into actionable insights for investors.
He brings more than 15 years of experience as an investor and financial journalist, including 12 years at The Motley Fool, where he served as an investment analyst, Bureau Chief, and later led the Fool.com investing news desk. He has also co-hosted an investing podcast and appeared across TV and radio discussing market trends.
