GameStop (GME) has more than a meme-stock reputation riding on its upcoming earnings report. The video game and collectibles retailer has been battling a shrinking core business, with sales declining in each of the past four fiscal years. At the same time, concerns about share dilution and the company’s ability to drive sustainable retail growth have continued to weigh on investor sentiment. Still, GameStop’s preliminary fiscal 2026 second-quarter results, released on Aug. 31, may have given investors something to watch.
The company expects quarterly net income of $290 million to $310 million, almost double the $168.6 million reported a year earlier. But there’s a catch. The stronger bottom line isn’t being driven by a rebound in game sales. Instead, investment gains, particularly from GameStop’s stake in eBay (EBAY), are doing much of the heavy lifting, while quarterly sales are expected to decline to $780 million-$800 million from $972.2 million a year ago.
