Take-Two Interactive Software (NASDAQ:TTWO) Announces Earnings Results, Misses Estimates By $1.26 EPS

Key Points

• Take-Two missed quarterly expectations: It reported a loss of $0.29 per share versus consensus EPS of $0.97, and revenue of $1.50 billion versus the $1.64 billion estimate.
• GTA VI is a major growth catalyst: Management cited strong pre-orders and reaffirmed fiscal 2027 net bookings guidance of $8.0 billion–$8.2 billion ahead of the game’s November 19 launch.
• Near-term performance showed pressure: Second-quarter net bookings were slightly below guidance, recurrent consumer spending fell 9%, and the fiscal-year revenue outlook was below analyst consensus.

Take-Two Interactive Software (NASDAQ:TTWO - Get Free Report) announced its earnings results on Monday. The company reported ($0.29) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.97 by ($1.26), FiscalAI reports. The company had revenue of $1.50 billion during the quarter, compared to the consensus estimate of $1.64 billion. Take-Two Interactive Software had a negative net margin of 4.79% and a positive return on equity of 12.25%. 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

NASDAQ:TTWO traded down $7.47 during mid-day trading on Monday, reaching $207.40. 6,004,486 shares of the stock were exchanged, compared to its average volume of 2,385,974. The business has a fifty day moving average price of $207.53 and a 200 day moving average price of $219.12. The firm has a market capitalization of $38.78 billion, a PE ratio of -119.88, a PEG ratio of 1.60 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 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 brokerages have recently weighed in on TTWO. Arete Research reduced their price target on shares of Take-Two Interactive Software from $308.00 to $295.00 and set a "buy" rating for the company in a research note on Wednesday, September 9th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Take-Two Interactive Software in a research note on Tuesday, October 6th. Robert W. Baird raised their price objective on shares of Take-Two Interactive Software from $265.00 to $270.00 and gave the company an "outperform" rating in a research note on Monday, August 10th. Benchmark reissued a "buy" rating on shares of Take-Two Interactive Software in a report on Monday, August 10th. Finally, Zacks Research downgraded Take-Two Interactive Software from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 25th. One investment analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $287.76.

Key Headlines Impacting Take-Two Interactive Software

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

• Positive Sentiment: Take-Two said Grand Theft Auto VI is due to launch November 19, just ten days after the earnings announcement, with pre-orders continuing. The release is a major potential sales catalyst. Take-Two fiscal second-quarter results
• Positive Sentiment: Fiscal 2027 EPS guidance of $5.75–$6.00 is well above the cited analyst consensus of $2.41. Third-quarter EPS guidance of $3.80–$4.00 also exceeds consensus of $2.08.
• Positive Sentiment: Macquarie initiated coverage with an Outperform rating and a $300 price target, signaling a bullish view of the company’s prospects. Macquarie rating and price target
• Negative Sentiment: Second-quarter EPS was a loss of $0.29, missing the $0.97 consensus, while revenue of $1.50 billion fell short of the $1.64 billion estimate. Take-Two fiscal second-quarter results
• Negative Sentiment: Take-Two’s fiscal 2027 revenue forecast of $8.0–$8.2 billion is below the $8.6 billion consensus. Reuters also reported that projected third-quarter bookings were below estimates, raising concerns about near-term sales expectations ahead of GTA VI. Reuters report on bookings outlook

Insider Transactions at Take-Two Interactive Software

In other Take-Two Interactive Software news, insider Daniel Emerson sold 744 shares of the company's stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $217.03, for a total value of $161,470.32. Following the completion of the sale, the insider directly owned 112,327 shares of the company's stock, valued at approximately $24,378,328.81. This represents a 0.66% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed 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 company's stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $203.69, for a total transaction of $98,585.96. Following the completion of the sale, the director directly owned 66,010 shares of the company's stock, valued at $13,445,576.90. The trade was a 0.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 13,636 shares of company stock valued at $2,825,391 in the last quarter. 1.12% of the stock is owned by company insiders.

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.

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

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