GameStop Corp. (GME) AI Stock Analysis

GameStop Corp., headquartered in Grapevine, Texas, is a specialty retailer offering games and entertainment products across the United States, Canada, Australia, and Europe. It operates retail stores and e-commerce platforms under the GameStop, EB Games, and Micromania brands, alongside 50 Zing Pop Culture themed stores. Its product lineup includes new and pre-owned gaming platforms, software, accessories, in-game digital currency, downloadable content, and collectibles featuring licensed pop culture merchandise. The company also publishes Game Informer, a gaming publication providing reviews and industry news.

GameStop has experienced multi-year top-line contraction, with 5-year revenue CAGR from FY2021 to FY2026 at -6.5%. Annual revenue decreased from $6.01B in FY2022 to $3.63B in FY2026, including a 5.1% decline in FY2026. However, gross margin expanded from 22.4% in FY2022 to 32.4% in FY2026, and operating margin improved from -6.1% to 7.9%. Net income transitioned from a loss of -$381.3M in FY2022 to positive $418.4M in FY2026, representing an 11.5% net margin. For the trailing twelve months ended July 31, 2026, revenue stood at $3.55B with a profit margin of 25.2%. In the latest quarter ended July 31, 2026, quarterly revenue fell 18.7% year-over-year, while quarterly earnings grew 64.5%.

As of July 31, 2026, GameStop held $5.06B in cash and short-term investments against total debt of $4.33B, yielding net cash of $727.1M. Total assets were $11.14B and shareholders' equity was $6.14B, resulting in a debt-to-equity ratio of 0.71 and a current ratio of 8.72. Operating cash flow in FY2026 reached $614.8M, supporting free cash flow of $597.3M after capital expenditures of $17.5M. Share issuance was $10.1M in FY2026, and the share count increased 95.2% over 5 years.

At a last close of $26.81, GameStop carries a market capitalization of $13.53B and an enterprise value of $11.40B. The stock trades at a trailing P/E of 17.6x, compared to 18.0x for the median of its US-listed Consumer Cyclical peers. Its forward P/E of 28.2x sits above the peer group median of 14.1x, while its enterprise value-to-EBITDA of 22.5x compares to the peer median of 11.1x. Over the past year, GME delivered a return of 16.8%, matching the S&P 500 (SPY) return of 16.8%, though its 5-year return of -41.5% trails the S&P 500 return of 83.0%.

One analyst provides next fiscal year estimates for GameStop. The mean price target is $13.50, representing a -49.6% difference compared to the last close of $26.81. For the current fiscal year ending January 31, 2027, the consensus estimates forecast EPS of $1.80 on revenue of $3.90B. For the following fiscal year, estimates project EPS of $1.86 on revenue of $4.33B, implying revenue growth of 11.0%. The company beat EPS estimates in 3 of the last 4 quarters. The next earnings date is December 8, 2026.

This page is an AI-written research summary of GameStop Corp. (GME). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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