GameStop is set to report its Q2 2026 earnings after the market closes on Tuesday, September 8. The stock was trading at $18.39, down roughly 8.5% year to date.
Options traders are pricing in a move of about 6.86% in either direction following the results, according to TipRanks’ Options Tool.
Wall Street expects earnings of $0.27 per share for the quarter, with revenue coming in around $756.85 million.
Preliminary results the company already released point to something better than feared. Net income is projected at $290 million to $310 million, up from $168.6 million in the same period last year.
Operating income is expected to land between $150 million and $170 million. That would be more than double the $66.4 million reported a year ago.
A big chunk of that profit jump comes from GameStop’s investment in eBay. The company recorded roughly $238 million in net gains after converting its eBay derivative position into a direct equity stake.
As of August 1, GameStop held 43.4 million eBay shares worth approximately $4.947 billion.
Those gains were partly offset by a $75 million loss on digital assets and related receivables.
Net sales are expected to fall to between $780 million and $800 million, compared to $972.2 million in Q2 last year. The company attributed that decline mainly to the tough comparison with last year’s Nintendo Switch 2 launch.
Even so, the expected revenue range sits above the Wall Street consensus of $756.85 million.
Cash, cash equivalents, and marketable securities are projected at $5.05 billion to $5.07 billion, down from $8.694 billion a year ago. The drop largely reflects cash deployed for the eBay investment.
The core retail business continues to struggle. Store closures and the company’s exit from France have weighed on sales.
GameStop also completed a $1.4 billion convertible-note exchange in August, which raised concerns among investors about dilution.
Insiders have sold 18,125 shares worth about $406,587 over the past 90 days. Corporate insiders currently own 9.50% of the stock.
In the previous quarter, GameStop posted earnings of $0.30 per share, beating the consensus of $0.16 by $0.14. Revenue came in at $835.30 million, topping estimates of $766.63 million.
The stock has a 52-week range of $17.79 to $28.10, with a 50-day moving average of $20.47.
GME carries a consensus “Hold” rating, with Wall Street Zen recently upgrading the stock to “Buy.”
The post GameStop (GME) Stock: What Wall Street Expects from Earnings Tuesday appeared first on CoinCentral.
