GameStop Jumps 10% on Record Profit, $2 Billion Buyback as eBay Bid Battle Intensifies

Shares of GameStop (NYSE:GME) are up 10% to $23 connected Wednesday morning, snapping backmost from a brutal agelong aft the video crippled retailer posted its highest quarterly nett income connected grounds and approved a caller $2 cardinal buyback. The popular comes aft Tuesday's $20.92 adjacent and an after-hours surge that extended into the premarket session.

The catalyst landed aft the doorbell connected June 2, erstwhile GameStop released its Q1 FY2026 results and the committee unanimously authorized a caller repurchase program. Meanwhile, takeover people eBay (NASDAQ:EBAY) is hardly moving, with eBay banal up little than 1% to astir $109.36 arsenic traders digest GameStop's continued pursuit.

The rebound is notable due to the fact that GameStop banal was down 21% implicit the past period heading into the print. Today's determination is simply a snapback connected a genuine astonishment alternatively than continued momentum.

Record Earnings, With an Important Asterisk

GameStop reported nett income of $389.6 million, its highest quarterly nett ever, versus $44.8 cardinal successful the prior-year quarter. Net income roseate 14% to $835.3 million, with the collectibles conception surging 65% twelvemonth implicit twelvemonth to go the largest merchandise category.

The operational turnaround astatine GameStop is genuine. Operating income swung to $143.3 cardinal from a $10.8 cardinal operating nonaccomplishment a twelvemonth earlier, and gross borderline expanded to 41% from 35%. Diluted EPS came successful astatine $0.66, with reported diluted EPS of $0.30 against an estimation of $0.04.

However, the header fig deserves context. The grounds nett income was boosted by a $268.4 cardinal unrealized summation connected a derivative plus tied to eBay communal banal (put and telephone options). Stripping that out, GameStop's adjusted nett income was $179.3 million, versus $73.1 cardinal successful the prior-year quarter, inactive a important improvement.

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$2 Billion Buyback Reignites the Squeeze Chatter

GameStop's committee unanimously approved a discretionary $2 cardinal stock repurchase authorization connected June 2, 2026, moving done June 2, 2029. The programme replaces the anterior authorization from March 2019.