US Stock Market Move | GameStop Corp. Class A (GME.US) surged over 7% in the first quarter with a net profit reaching $3.896 billion, a record high.

On Wednesday, the stock price of GameStop Corp. Class A (GME.US) rose, with the stock up over 7% to $22.42 as of the time of writing. On the news front, the company announced its performance for the first quarter of the 2026 fiscal year ending May 2, with net profit reaching a historic high. The board of directors also approved a new $20 billion stock repurchase plan. According to the financial report, GameStop Corp. Class A's first-quarter net sales increased by 14% year-on-year to $835.3 million, higher than the $732.4 million in the same period last year. The collectibles business performed particularly well, with sales increasing by 65% to $348.9 million, accounting for approximately 42% of total revenue compared to around 29% in the same period last year, becoming the company's largest source of income. In contrast, the traditional gaming business showed some pressure. Hardware and accessory sales decreased from $345.3 million in the same period last year to $333.7 million, while software sales decreased from $175.6 million to $152.7 million. With revenue growth and improved cost control, the company's profitability significantly improved. Operating income for the first quarter reached $143.3 million, compared to an operating loss of $10.8 million in the same period last year; sales, general and administrative expenses decreased from $228.1 million to $201.6 million. In terms of profitability, GameStop Corp. Class A achieved a net profit of $389.6 million in the first quarter, setting a record for the highest quarterly profit in the company's history, significantly higher than the $44.8 million in the same period last year. However, a portion of the record profit was driven by investment income. The financial report shows that the company recorded $268.4 million in unrealized gains from derivatives related to eBay (EBAY.US) stock, as well as $83.7 million in interest income. Excluding related items and one-time factors, the company's adjusted net profit was $179.3 million, higher than $73.1 million in the same period last year. Meanwhile, GameStop Corp. Class A's board of directors unanimously approved a new $20 billion stock repurchase authorization on June 2, which will expire on June 2, 2029, and replace the repurchase plan approved in March 2019. The company stated that the specific size and timing of future repurchases would be determined based on market conditions, stock performance, and capital allocation needs. As of the end of this quarter, GameStop Corp. Class A had a total of approximately $9.7 billion in cash and cash equivalents, providing ample cash reserves for the company's future capital operations. However, the company's long-term debt also increased to $4.17 billion, higher than $1.48 billion in the same period last year.