GameStop seesaws on Q4 results

GameStop reported its fourth-quarter earnings after the bell on Tuesday, and the video game retailer seesawed in after-hours trading.

For its fiscal Q4 2026, GameStop reported:

• Net sales of $1.1 billion, compared to the consensus estimate of $1.32 billion and down about 14% from the same period a year prior.

• Adjusted net income of $291.4 million, compared to the consensus estimate of $169 million. The figure excludes impairment, loss on digital assets and related receivables, and other items.

(Note: Once again, “consensus estimate” in this case means “Baird analyst Colin Sebastian’s estimate.” He’s the only one who submitted projections to Bloomberg.)

The fourth quarter, which encompasses the winter holiday season, is typically the bumper quarter for GameStop. The company’s collectibles business brought in $365 million in sales, making up a third of the company’s total sales, as “Pokémon” cards climb in value. In the fourth quarter of last year, GME’s collectibles sales accounted for 21% of total sales.

Most of the recent news swirling around the company, however, includes two main characters: Michael Burry and Ryan Cohen.

In January, the former (of “The Big Short” fame) revealed that he was long GameStop, spurring the most retail buying of the shares since the company’s pivot to bitcoin in Q1 2025.

Cohen, the CEO of GameStop, also publicly revealed he’s in the market for a “genius or totally, totally foolish” major acquisition in the consumer or retail industry, with a target that’s much bigger than GME.

This M&A hunt followed Cohen agreeing to a compensation package that would completely tie his pay to the stock performance and GameStop’s operational performance, and also buying 1 million shares of company stock over the course of two days.