Take-Two Interactive Software (NASDAQ:TTWO – Get Free Report) issued its quarterly earnings data on Friday. The company reported ($0.18) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.33 by ($0.51), Briefing.com reports. The firm had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.36 billion. Take-Two Interactive Software had a positive return on equity of 14.68% and a negative net margin of 4.48%.The business’s revenue for the quarter was down 2.1% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.07) earnings per share. Take-Two Interactive Software updated its Q2 2027 guidance to 0.900-1.000 EPS and its FY 2027 guidance to 5.750-6.000 EPS.
Here are the key takeaways from Take-Two Interactive Software’s conference call:
- First-quarter net bookings reached $1.39 billion, slightly above the high end of guidance, driven by stronger-than-expected NBA 2K and Grand Theft Auto performance. Management reiterated fiscal 2027 net bookings guidance of $8.0 billion-$8.2 billion, representing approximately 20% growth at the midpoint.
- Grand Theft Auto VI remains the key catalyst, with an exceptional start to pre-orders ahead of its November 19 release. Management said anticipation continues to build but cautioned that pre-orders may pull forward some post-launch sales and that no units have yet been sold.
- NBA 2K26 delivered a record year, with more than 12 million units sold, unit growth of 9%, recurrent consumer spending up 7%, and substantial increases in player engagement. Take-Two expects NBA 2K27 to continue benefiting from innovation and additional growth opportunities.
- Mobile performance was broadly in line with expectations, though net bookings declined 7% year over year due largely to difficult comparisons with Color Block Jam. Management reported healthy engagement across titles such as Toon Blast, Words with Friends, and Top Eleven, while noting pressure on user-acquisition costs.
- Cost of revenue rose 17% to $651 million, including a $43 million impairment charge tied to an unannounced third-party title that will not proceed. Full-year capital-expenditure expectations also increased to approximately $290 million due to a planned real-estate purchase.
Take-Two Interactive Software Trading Up 6.0%
Shares of NASDAQ:TTWO traded up $14.03 during trading on Friday, reaching $246.50. The stock had a trading volume of 3,984,756 shares, compared to its average volume of 2,275,160. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 0.71. The stock has a market cap of $46.09 billion, a P/E ratio of -152.16, a PEG ratio of 4.37 and a beta of 0.97. The business has a fifty day moving average price of $235.89 and a 200-day moving average price of $221.32. Take-Two Interactive Software has a fifty-two week low of $187.63 and a fifty-two week high of $265.94.
More Take-Two Interactive Software News
- Positive Sentiment: Revenue and adjusted earnings beat estimates: Fiscal Q1 revenue reached $1.53 billion, ahead of analysts’ roughly $1.36 billion-$1.41 billion expectations. Adjusted EPS was reported at $0.36 versus a $0.31 consensus estimate, while adjusted EBITDA of $167 million topped expectations of $155 million. Take-Two Q1 earnings beat expectations ahead of GTA VI launch
- Positive Sentiment: GTA VI remains on schedule: Take-Two reiterated that Grand Theft Auto VI is on track for its November release, with preorders already underway. The launch is a major potential catalyst because investors expect the title to drive bookings, revenue and cash flow. Take-Two sticks to annual bookings outlook, says on track for GTA VI November launch
- Positive Sentiment: Full-year earnings guidance was raised relative to consensus: Take-Two projected fiscal 2027 EPS of $5.75-$6.00, well above the cited $2.49 analyst consensus, suggesting substantial earnings growth as new releases contribute. Take-Two Reports Fiscal First Quarter 2027 Results
- Neutral Sentiment: Annual outlook was maintained, not increased: Management kept its fiscal 2027 net bookings forecast unchanged, indicating confidence in the existing plan but offering no incremental upgrade ahead of GTA VI. Take-Two’s Earnings and Bookings Guidance Shows How World Awaits Grand Theft Auto VI
- Negative Sentiment: Bookings declined and the GAAP loss widened: Net bookings fell 3% year over year to $1.39 billion. The company also reported a GAAP loss of $0.18 per share, versus a $0.07 loss a year earlier, while revenue declined 2.1% year over year. Fiscal 2027 revenue guidance of $8.0 billion-$8.2 billion was below the cited $8.6 billion consensus. Take-Two Logs Higher Sales but Loss Widens
Insider Transactions at Take-Two Interactive Software
In other news, President Karl Slatoff sold 40,358 shares of the firm’s stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $216.09, for a total transaction of $8,720,960.22. Following the sale, the president owned 40,358 shares in the company, valued at $8,720,960.22. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael Dornemann sold 1,151 shares of the company’s stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $217.02, for a total value of $249,790.02. Following the completion of the transaction, the director owned 20,374 shares of the company’s stock, valued at $4,421,565.48. The trade was a 5.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 569,936 shares of company stock worth $128,431,438 in the last three months. 1.12% of the stock is currently owned by company insiders.
Institutional Investors Weigh In On Take-Two Interactive Software
Several hedge funds have recently modified their holdings of TTWO. Integrated Wealth Concepts LLC purchased a new position in Take-Two Interactive Software during the first quarter worth approximately $425,000. Empowered Funds LLC increased its holdings in shares of Take-Two Interactive Software by 13.2% during the 1st quarter. Empowered Funds LLC now owns 3,322 shares of the company’s stock worth $688,000 after buying an additional 388 shares during the last quarter. Geneos Wealth Management Inc. raised its position in shares of Take-Two Interactive Software by 118.7% in the 1st quarter. Geneos Wealth Management Inc. now owns 304 shares of the company’s stock worth $63,000 after buying an additional 165 shares during the period. Arrowstreet Capital Limited Partnership acquired a new position in Take-Two Interactive Software in the second quarter valued at $2,747,000. Finally, Jump Financial LLC grew its position in Take-Two Interactive Software by 105.3% during the second quarter. Jump Financial LLC now owns 7,115 shares of the company’s stock valued at $1,728,000 after acquiring an additional 3,650 shares during the period. 95.46% of the stock is owned by institutional investors and hedge funds.
Analyst Ratings Changes
Several research analysts have recently issued reports on TTWO shares. Wells Fargo & Company lifted their price target on Take-Two Interactive Software from $287.00 to $289.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 7th. Weiss Ratings restated a “sell (d-)” rating on shares of Take-Two Interactive Software in a report on Friday, July 10th. Raymond James Financial set a $300.00 target price on shares of Take-Two Interactive Software in a research report on Thursday. Benchmark reiterated a “buy” rating on shares of Take-Two Interactive Software in a research report on Friday, May 22nd. Finally, Bank of America raised their price objective on shares of Take-Two Interactive Software from $320.00 to $368.00 and gave the stock a “buy” rating in a research note on Tuesday, June 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Buy” and an average target price of $295.38.
View Our Latest Research Report on TTWO
Take-Two Interactive Software Company Profile
Take-Two Interactive Software is an American video game publisher headquartered in New York City. Founded in 1993 by Ryan Brant, the company is publicly traded on the NASDAQ under the ticker TTWO and is led by Chairman and CEO Strauss Zelnick. Take-Two operates through distinct publishing labels that manage development, marketing and distribution of interactive entertainment for a global audience.
Take-Two’s publishing portfolio includes Rockstar Games and 2K, as well as the Private Division label, which supports independent and mid-size developers.
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