Take-Two Interactive Software (NASDAQ:TTWO) Posts Earnings Results, Misses Expectations By $0.51 EPS

Key Points

• Take-Two reported a GAAP loss of $0.18 per share, missing the $0.33 consensus estimate by $0.51, while revenue of $1.53 billion exceeded expectations but declined 2.1% year over year.
• Grand Theft Auto VI remains the company’s key catalyst, with preorders off to an exceptional start ahead of its scheduled November 19 release; management cautioned that preorders could shift some sales from after launch.
• Take-Two maintained fiscal 2027 net bookings guidance of $8.0 billion-$8.2 billion and projected EPS of $5.75-$6.00, but costs increased after a $43 million impairment charge tied to an unannounced title and higher planned capital expenditures.

Take-Two Interactive Software (NASDAQ:TTWO - Get Free Report) released its quarterly earnings results on Friday. The company reported ($0.18) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.33 by ($0.51), Briefing.com reports. Take-Two Interactive Software had a positive return on equity of 14.68% and a negative net margin of 4.48%.The firm had revenue of $1.53 billion for the quarter, compared to analysts' expectations of $1.36 billion. During the same quarter in the prior year, the business earned ($0.07) EPS. The company's quarterly revenue was down 2.1% compared to the same quarter last year. 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 Stock Performance

TTWO traded up $14.03 during trading on Friday, hitting $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 debt-to-equity ratio of 0.71, a quick ratio of 1.24 and a current ratio of 1.24. The firm has a market capitalization of $46.09 billion, a P/E ratio of -152.16, a PEG ratio of 4.37 and a beta of 0.97. The company's 50-day moving average price is $235.89 and its 200 day moving average price is $221.32. Take-Two Interactive Software has a twelve month low of $187.63 and a twelve month high of $265.94.

Take-Two Interactive Software News Summary

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

• 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

Insiders Place Their Bets

In other news, insider Daniel P. Emerson sold 4,419 shares of the business's stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $230.00, for a total transaction of $1,016,370.00. Following the transaction, the insider directly owned 113,988 shares in the company, valued at $26,217,240. The trade was a 3.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Karl Slatoff sold 40,358 shares of the firm's stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $216.09, for a total transaction of $8,720,960.22. Following the completion of the sale, the president owned 40,358 shares of the company's stock, valued at approximately $8,720,960.22. The trade was a 50.00% 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. Over the last quarter, insiders have sold 569,936 shares of company stock valued at $128,431,438. Corporate insiders own 1.12% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. Transamerica Financial Advisors LLC increased its holdings in shares of Take-Two Interactive Software by 79.5% in the 4th quarter. Transamerica Financial Advisors LLC now owns 219 shares of the company's stock valued at $56,000 after purchasing an additional 97 shares in the last quarter. EFG International AG acquired a new position in Take-Two Interactive Software during the fourth quarter worth about $60,000. DV Equities LLC acquired a new position in Take-Two Interactive Software during the fourth quarter worth about $61,000. Geneos Wealth Management Inc. increased its holdings in Take-Two Interactive Software by 118.7% in the first quarter. Geneos Wealth Management Inc. now owns 304 shares of the company's stock valued at $63,000 after buying an additional 165 shares in the last quarter. Finally, Wexford Capital LP purchased a new position in Take-Two Interactive Software in the third quarter valued at about $70,000. Hedge funds and other institutional investors own 95.46% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on TTWO. Piper Sandler restated an "overweight" rating on shares of Take-Two Interactive Software in a research report on Tuesday, June 16th. Bank of America increased their price target 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. Raymond James Financial set a $300.00 price objective on shares of Take-Two Interactive Software in a research report on Thursday. Benchmark reaffirmed a "buy" rating on shares of Take-Two Interactive Software in a report on Friday, May 22nd. Finally, DA Davidson reiterated a "buy" rating and set a $300.00 target price on shares of Take-Two Interactive Software in a research note on Monday, June 15th. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Buy" and an average price target of $295.38.

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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