GameStop (NYSE: GME) has forecast net sales of between $780 million and $800 million for its second quarter ended August 1, 2026, a significant drop from $972.2 million in the same period a year earlier.
The US-based video game retailer attributed the anticipated revenue decline to three primary factors driving the shortfall compared to the prior year.
Those factors include the launch of the Nintendo Switch 2 in the prior-year quarter, planned store closures, and the divestiture of its operations in France.
Despite the weaker top-line outlook, GameStop expects operating income to climb to between $150 million and $170 million, up sharply from $66.4 million recorded in Q2 2025.
Net income is projected to land between $290 million and $310 million for the quarter, compared with $168.6 million in the equivalent period the previous year.
The company noted that its anticipated net income figure includes roughly $238 million in net gains tied to its derivative asset and equity investment in eBay, partially offset by an estimated $75 million loss related to digital assets and associated receivables.
Cash, cash equivalents, and marketable securities are expected to total between $5.05 billion and $5.07 billion at quarter-end, down from $8.69 billion recorded a year earlier.
The decline in cash and liquid holdings reflects the company’s ongoing strategic repositioning, even as profitability metrics trend meaningfully higher on both an operating and net income basis.
GameStop reported a strong performance in its first quarter, posting a sharp improvement in earnings and operating results aided by continued growth in its collectibles division.
That collectibles segment contributed to a 14% rise in net sales for the quarter ended May 2, 2026, signaling that the company’s diversification efforts are gaining measurable traction.
The contrasting picture of falling revenues alongside rising profitability underscores GameStop’s ongoing transformation from a traditional brick-and-mortar video game retailer into a leaner, more financially focused enterprise.
Investors will be watching closely when GameStop reports its full Q2 results, with the profitability improvements likely to draw significant attention given the scale of the year-over-year earnings growth.
