Take-Two Interactive Software (NASDAQ:TTWO) Releases Earnings Results, Misses Estimates By $1.25 EPS

Take-Two Interactive Software (NASDAQ:TTWO) announced its earnings results on Monday. The company reported ($0.29) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.96 by ($1.25), FiscalAI reports. The company had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.64 billion. Take-Two Interactive Software had a positive return on equity of 12.25% and a negative net margin of 4.79%. Take-Two Interactive Software’s revenue for the quarter was down 18.4% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.73) earnings per share. Take-Two Interactive Software updated its Q3 2027 guidance to 3.800-4.000 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:

• Second-quarter net bookings were $1.6 billion, slightly below guidance, while recurrent consumer spending fell 9% versus the expected 5% decline, driven mainly by NBA 2K. GAAP net revenue decreased 16% year over year.
• Take-Two reiterated its fiscal 2027 net bookings outlook of $8.0 billion–$8.2 billion, citing exceptionally strong GTA VI pre-orders and confidence in the upcoming launch. Third-quarter net bookings are forecast at $3.35 billion–$3.5 billion.
• NBA 2K27 has sold more than 4 million units and delivered the series’ second-highest launch, but results were below expectations. Management expects bookings and engagement to accelerate in the second half with an expanded post-launch content slate.
• Take-Two expects mobile net bookings to decline for the fiscal year, reflecting Color Block Jam’s comparison with last year’s peak and anticipated moderation in several mature titles.
• The company expects operating cash flow to exceed $1 billion and to end the fiscal year in a net cash position. Full-year operating-expense growth is now forecast at about 5%, better than previously expected, partly due to lower user-acquisition costs.

Take-Two Interactive Software Price Performance

Take-Two Interactive Software stock opened at $207.40 on Tuesday. The firm has a market capitalization of $38.78 billion, a P/E ratio of -119.88, a PEG ratio of 1.55 and a beta of 0.93. Take-Two Interactive Software has a 1 year low of $183.86 and a 1 year high of $265.94. The business has a 50-day moving average of $206.97 and a 200-day moving average of $218.96. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.52.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on TTWO. Arete Research dropped their target price on Take-Two Interactive Software from $308.00 to $295.00 and set a “buy” rating for the company in a research report on Wednesday, September 9th. Zacks Research cut shares of Take-Two Interactive Software from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, August 25th. Oppenheimer reaffirmed an “outperform” rating on shares of Take-Two Interactive Software in a report on Tuesday, September 8th. Roth Capital upped their target price on shares of Take-Two Interactive Software from $295.00 to $300.00 and gave the company a “buy” rating in a research report on Monday, August 10th. Finally, Bank of America dropped their target price on shares of Take-Two Interactive Software from $368.00 to $330.00 and set a “buy” rating for the company in a research report on Tuesday, October 27th. One analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Take-Two Interactive Software currently has an average rating of “Moderate Buy” and an average target price of $288.05.

Insider Buying and Selling

In related news, Director LaVerne Srinivasan sold 362 shares of the stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $245.01, for a total value of $88,693.62. Following the sale, the director directly owned 8,357 shares in the company, valued at $2,047,548.57. This trade represents a 4.15% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Michael Sheresky sold 484 shares of Take-Two Interactive Software stock in a transaction that occurred on Friday, October 2nd. The stock was sold at an average price of $203.69, for a total transaction of $98,585.96. Following the transaction, the director directly owned 66,010 shares in the company, valued at $13,445,576.90. The trade was a 0.73% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 13,636 shares of company stock worth $2,825,391 over the last quarter. Insiders own 1.12% of the company’s stock.

Key Headlines Impacting Take-Two Interactive Software

Here are the key news stories impacting Take-Two Interactive Software this week:

• Positive Sentiment: CEO Strauss Zelnick said GTA VI preorders are at unprecedented levels and tracking far above expectations, a significant demand signal ahead of the game’s scheduled November 19 launch. Article: Grand Theft Auto 6 pre-orders are tracking far above expectations
• Positive Sentiment: Take-Two reiterated fiscal 2027 net bookings guidance of $8.0 billion to $8.2 billion despite the strong preorder commentary. Some investors may see the unchanged forecast as conservative if launch demand translates into stronger-than-expected bookings. Article: Take-Two reiterates FY2027 net bookings guidance
• Neutral Sentiment: Investor focus is likely to remain on whether GTA VI meets high expectations at launch and whether the company’s outlook is revised as sales data develops.
• Negative Sentiment: Second-quarter net bookings were $1.6 billion, slightly below initial guidance. Reports also highlighted lower year-over-year revenue and a shortfall against analyst expectations, while Take-Two’s next-quarter bookings outlook was reported below estimates—potential near-term headwinds despite the blockbuster launch approaching. Article: Take-Two projects third-quarter bookings below estimates

Take-Two Interactive Software Company Profile

Take-Two Interactive Software is a global publisher and developer of interactive entertainment for console, PC, and mobile platforms. Its business includes creating and distributing games, downloadable content, and related services through its wholly owned labels, including Rockstar Games, 2K, and Zynga.

The company’s portfolio includes franchises such as Grand Theft Auto, Red Dead Redemption, NBA 2K, Borderlands, and Civilization, along with a range of mobile games. Its titles are sold and played in markets around the world.

Founded in 1993 and headquartered in New York City, Take-Two acquired mobile-game publisher Zynga in 2022.