By Connor Smith
GameStop may not have successfully courted eBay, but the retailer reported its biggest quarter on record.
GameStop on Tuesday reported net income of $389.6 million, with operating income up to $143.3 million. The company said that's the highest quarterly net income on record and its highest operating income in a first-quarter. Sales rose 14% year-over-year to $835.3 million.
Adjusted net income was $179.3 million, up from $73 million in the first quarter of the prior year. That figure excludes impairments, gains on digital assets and related receivables, and an unrealized gain on derivative assets, and other items, the company said.
The company said the year-over-year sales growth was boosted by its business selling collectibles.
GameStop shares popped 7.2% to $22.43 in after-hour trading.
The company's board also approved a $2 billion share repurchase authorization through June 2, 2029, which replaced a prior authorization from 2019.
In late May, the company disclosed it increased its stake in eBay to 6.55%. That came after eBay rejected GameStop's bid for a takeover, calling it "neither credible nor attractive." GameStop offered $56 billion in cash and stock.
Most analysts covering GameStop dropped coverage in 2021 during its initial meme-stock rally, so there are not enough estimates to form a consensus.
Write to Connor Smith at connor.smith@barrons.com
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(END) Dow Jones Newswires
June 02, 2026 17:35 ET (21:35 GMT)
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