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

Take-Two Interactive Software (NASDAQ:TTWO) posted its quarterly earnings results on Monday. The company reported ($0.29) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.97 by ($1.26), FiscalAI reports. Take-Two Interactive Software had a negative net margin of 4.79% and a positive return on equity of 12.25%. The company had revenue of $1.50 billion during the quarter, compared to the consensus estimate of $1.64 billion. 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 Trading Down 3.5%

Shares of NASDAQ:TTWO traded down $7.47 during mid-day trading on Monday, hitting $207.40. The stock had a trading volume of 6,004,486 shares, compared to its average volume of 2,385,974. The company’s 50 day moving average is $207.53 and its 200-day moving average is $219.12. Take-Two Interactive Software has a 12-month low of $183.86 and a 12-month high of $265.94. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.06 and a current ratio of 1.06. The company has a market cap of $38.78 billion, a PE ratio of -119.88, a P/E/G ratio of 1.60 and a beta of 0.93.

More Take-Two Interactive Software News

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 Activity

In other news, Director Ellen F. Siminoff sold 334 shares of the stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $202.92, for a total value of $67,775.28. Following the completion of the sale, the director owned 1,332 shares in the company, valued at $270,289.44. This represents a 20.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director William B. Gordon sold 10,000 shares of the stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $202.39, for a total value of $2,023,900.00. Following the completion of the sale, the director owned 47,187 shares of the company’s stock, valued at $9,550,176.93. The trade was a 17.49% decrease in their position. 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. In the last 90 days, insiders sold 13,636 shares of company stock worth $2,825,391. 1.12% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on TTWO. Benchmark restated a “buy” rating on shares of Take-Two Interactive Software in a report on Monday, August 10th. UBS Group set a $310.00 target price on Take-Two Interactive Software in a research report on Monday, September 28th. Bank of America reduced their target price on Take-Two Interactive Software from $368.00 to $330.00 and set a “buy” rating for the company in a report on Tuesday, October 27th. Robert W. Baird increased their price target on Take-Two Interactive Software from $265.00 to $270.00 and gave the company an “outperform” rating in a research report on Monday, August 10th. Finally, Roth Capital lifted their price target on Take-Two Interactive Software from $295.00 to $300.00 and gave the stock a “buy” rating in a research note on Monday, August 10th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Take-Two Interactive Software currently has a consensus rating of “Moderate Buy” and a consensus target price of $287.76.

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.