Take-Two Interactive Software (NASDAQ:TTWO) Announces Quarterly Earnings Results

Take-Two Interactive Software (NASDAQ:TTWO) released its quarterly earnings results on Monday. The company reported ($0.29) 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 the consensus estimate of $1.62 billion. Take-Two Interactive Software had a positive return on equity of 9.94% and a negative net margin of 3.75%. The firm’s quarterly revenue was down 18.4% compared to the same quarter last year. During the same quarter last year, the firm 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

Shares of NASDAQ TTWO opened at $224.64 on Wednesday. Take-Two Interactive Software has a twelve month low of $183.86 and a twelve month high of $265.94. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.52. The firm has a 50-day moving average of $207.06 and a two-hundred day moving average of $218.88. The company has a market capitalization of $42.00 billion, a price-to-earnings ratio of -174.14, a PEG ratio of 1.54 and a beta of 0.93.

Analyst Ratings Changes

Several research analysts have recently issued reports on TTWO shares. Arete Research decreased their price objective on shares of Take-Two Interactive Software from $308.00 to $295.00 and set a “buy” rating for the company in a report on Wednesday, September 9th. Weiss Ratings reissued a “sell (d-)” rating on shares of Take-Two Interactive Software in a report on Tuesday, October 6th. Wedbush reissued an “outperform” rating and set a $280.00 target price on shares of Take-Two Interactive Software in a report on Monday, November 2nd. Roth Capital upped their target price on Take-Two Interactive Software from $295.00 to $300.00 and gave the stock a “buy” rating in a research report on Monday, August 10th. Finally, The Goldman Sachs Group increased their price target on Take-Two Interactive Software from $275.00 to $285.00 and gave the company a “buy” rating in a research note on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $287.30.

Insider Buying and Selling

In other Take-Two Interactive Software news, insider Daniel P. Emerson sold 917 shares of the company’s stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $217.65, for a total value of $199,585.05. Following the transaction, the insider owned 113,071 shares of the company’s stock, valued at approximately $24,609,903.15. This represents a 0.80% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Michael Sheresky sold 484 shares of the firm’s stock in a transaction on Friday, October 2nd. The stock was sold at an average price of $203.69, for a total value of $98,585.96. Following the sale, the director directly owned 66,010 shares of the company’s stock, valued at approximately $13,445,576.90. This represents a 0.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 13,636 shares of company stock worth $2,825,391. 1.12% of the stock is owned by insiders.

Key Take-Two Interactive Software News

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

• Positive Sentiment: Management said GTA VI preorders are at “unprecedented” levels and tracking “far in excess” of expectations. The game is scheduled to launch November 19, making it a major potential sales catalyst. Take-Two stock rises on unprecedented preorders for GTA VI
• Positive Sentiment: Take-Two reiterated its fiscal 2027 net bookings outlook of $8.0 billion to $8.2 billion despite the current-quarter bookings shortfall, while lower costs helped its earnings beat estimates. Take-Two Q2 earnings beat on lower costs despite bookings miss
• Positive Sentiment: Analysts maintained bullish views: BTIG reaffirmed Buy with a $262 target, while JPMorgan maintained Overweight and a $310 target. UBS kept its Buy rating but trimmed its target to $295 from $300. Analyst commentary on Take-Two
• Neutral Sentiment: The stock’s near-term outlook remains closely tied to the game’s launch: investor enthusiasm is high, but results will depend on converting preorder demand into sales and sustaining bookings after release.
• Negative Sentiment: Quarterly net bookings missed expectations, with NBA 2K27 cited as a weakness, and revenue was down year over year. The company’s next-quarter bookings outlook was also reported below estimates, tempering the otherwise upbeat launch narrative. Take-Two projects third-quarter bookings below estimates

About Take-Two Interactive Software

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.