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

Take-Two Interactive Software (NASDAQ:TTWO) released its quarterly earnings results on Monday. The company reported ($0.29) earnings per share for the quarter, missing analysts’ consensus estimates 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 business had revenue of $1.50 billion for 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 Price Performance

TTWO traded down $7.47 during trading on Monday, hitting $207.40. The company’s stock had a trading volume of 6,004,486 shares, compared to its average volume of 2,385,974. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.52. The stock has a market capitalization of $38.78 billion, a price-to-earnings ratio of -119.88, a price-to-earnings-growth ratio of 1.60 and a beta of 0.93. The firm’s 50 day moving average price is $207.53 and its two-hundred day moving average price is $219.12. Take-Two Interactive Software has a 12 month low of $183.86 and a 12 month high of $265.94.

Trending Headlines about Take-Two Interactive Software

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

• Positive Sentiment: GTA VI pre-orders have reached “unprecedented levels,” and the company maintained its fiscal 2027 net bookings forecast of $8.0 billion to $8.2 billion. One article argues this outlook may be conservative if the game continues generating sales after launch. Article: GTA VI Launches in 10 Days, and Take-Two’s Forecast Might Be Too Low
• Positive Sentiment: Macquarie initiated coverage with an Outperform rating and a $300 price target, offering a bullish view ahead of the launch. Article: Macquarie Initiates Take-Two at Outperform
• Neutral Sentiment: Investors were also positioning cautiously before earnings and the high-profile GTA VI release, with options implying an unusually large potential post-earnings move. This adds volatility but does not point to a specific negative company development. Article: Take-Two Slides as Investors Brace for Earnings and GTA VI Event Risk
• Negative Sentiment: Fiscal Q2 results missed expectations: Take-Two reported a loss of $0.29 per share versus expected earnings of $0.97, while revenue of $1.50 billion fell short of the $1.64 billion consensus. Article: Take-Two Reports Lower Revenue Ahead of GTA VI Launch
• Negative Sentiment: The company’s fiscal 2027 revenue outlook of $8.0 billion to $8.2 billion is below the $8.6 billion analyst consensus, and its third-quarter bookings forecast was reported as below estimates. The shortfall in outlook may weigh on sentiment despite the strong pre-orders. Article: Take-Two Projects Third-Quarter Bookings Below Estimates

Insider Activity at Take-Two Interactive Software

In other news, Director LaVerne Srinivasan sold 362 shares of the company’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $245.01, for a total transaction of $88,693.62. Following the transaction, the director directly owned 8,357 shares in the company, valued at approximately $2,047,548.57. This represents a 4.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Daniel P. Emerson sold 744 shares of the firm’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 transaction, the insider owned 112,327 shares in the company, valued at approximately $24,378,328.81. This represents a 0.66% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 13,636 shares of company stock valued at $2,825,391. 1.12% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the company. Roth Capital increased their price target on Take-Two Interactive Software from $295.00 to $300.00 and gave the company a “buy” rating in a report on Monday, August 10th. Benchmark restated a “buy” rating on shares of Take-Two Interactive Software in a research note on Monday, August 10th. Robert W. Baird upped their target price on 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. JPMorgan Chase & Co. initiated coverage on Take-Two Interactive Software in a research report on Tuesday, August 11th. They issued an “overweight” rating and a $310.00 target price for the company. Finally, Arete Research decreased their price target on shares of Take-Two Interactive Software from $308.00 to $295.00 and set a “buy” rating on the stock in a research note on Wednesday, September 9th. One analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Take-Two Interactive Software presently has a consensus rating of “Moderate Buy” and an average target price of $287.76.

Take-Two Interactive Software Company Profile

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.