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

Take-Two Interactive Software (NASDAQ:TTWO) announced its earnings results 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. Take-Two Interactive Software had a negative net margin of 4.48% and a positive return on equity of 14.68%. The business 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 company posted ($0.07) earnings per share. The firm’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 Trading Up 6.0%

Shares of TTWO traded up $14.03 during mid-day trading on Friday, reaching $246.50. 3,984,756 shares of the company’s stock traded hands, compared to its average volume of 1,884,079. The company has a debt-to-equity ratio of 0.71, a current ratio of 1.24 and a quick ratio of 1.24. The stock’s 50-day moving average is $236.34 and its two-hundred day moving average is $221.49. Take-Two Interactive Software has a 12 month low of $187.63 and a 12 month high of $265.94. The stock has a market cap of $46.09 billion, a P/E ratio of -152.16, a P/E/G ratio of 4.32 and a beta of 0.97.

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

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on TTWO. BTIG Research restated a “buy” rating and set a $293.00 price objective on shares of Take-Two Interactive Software in a research report on Monday, July 27th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Take-Two Interactive Software in a report on Friday, July 10th. Zacks Research upgraded Take-Two Interactive Software from a “hold” rating to a “strong-buy” rating in a report on Monday, July 27th. Raymond James Financial set a $300.00 price target on Take-Two Interactive Software in a report on Thursday. Finally, Bank of America lifted 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 analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Buy” and an average price target of $295.38.

Insider Activity

In related news, Director Ellen F. Siminoff sold 334 shares of the business’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $252.53, for a total transaction of $84,345.02. Following the completion of the transaction, the director owned 1,833 shares in the company, valued at $462,887.49. The trade was a 15.41% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jon J. Moses sold 500 shares of the company’s stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $244.61, for a total value of $122,305.00. Following the completion of the transaction, the director directly owned 21,868 shares in the company, valued at $5,349,131.48. This trade represents a 2.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 569,936 shares of company stock worth $128,431,438 in the last three months. Corporate insiders own 1.12% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the stock. Transamerica Financial Advisors LLC grew its stake in Take-Two Interactive Software by 79.5% in the 4th quarter. Transamerica Financial Advisors LLC now owns 219 shares of the company’s stock worth $56,000 after acquiring an additional 97 shares in the last quarter. EFG International AG bought a new stake in shares of Take-Two Interactive Software during the fourth quarter valued at approximately $60,000. DV Equities LLC bought a new stake in shares of Take-Two Interactive Software during the fourth quarter valued at approximately $61,000. Geneos Wealth Management Inc. boosted its holdings in shares of 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 purchasing an additional 165 shares during the period. Finally, Wexford Capital LP purchased a new stake in shares of Take-Two Interactive Software in the third quarter valued at approximately $70,000. Hedge funds and other institutional investors own 95.46% of the company’s stock.

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.