Key Takeaways
- Take-Two’s fiscal Q1 adjusted EPS beat estimates by 16.13%, whereas revenues topped expectations.
- NBA 2K26 bought over 12 million models, whereas Grand Theft Auto additionally exceeded Take-Two’s expectations.
- Take-Two reiterated FY27 Web Bookings steerage of $8.0-$8.2 billion, about 20% development at midpoint.
Take-Two Interactive Software program (TTWO – Free Report) reported first-quarter fiscal 2027 adjusted earnings of 36 cents per share, beating the Zacks Consensus Estimate by 16.13%. GAAP loss widened to 18 cents per share from 7 cents a yr in the past.
Revenues of $1.39 billion declined 2.6% yr over yr however topped the consensus estimate of $1.36 billion by 2.3%. Higher-than-expected NBA 2K and Grand Theft Auto efficiency helped Web Bookings exceed administration’s steerage. Recurrent client spending accounted for 84% of Web Bookings.
GAAP internet revenues elevated 2.0% yr over yr to $1.53 billion. Sport revenues rose 2.9% to $1.42 billion, whereas promoting revenues fell 8.4% to $111.1 million.
By platform, cellular revenues decreased 4.9% to $762.3 million and PC and different revenues dropped 13.5% to $131.1 million. Console revenues climbed 16.3% to $640.5 million, partly offsetting weak spot elsewhere. U.S. revenues rose 2.2% to $920.0 million, whereas worldwide revenues elevated 1.7% to $613.9 million.
Take-Two’s Q1 Outcomes Present Franchise Energy
NBA 2K26 bought in additional than 12 million models, up 9% from NBA 2K25. Recurrent client spending for NBA 2K grew 7%, supported by a 15% enhance in common day by day lively customers, a 25% rise in MyCAREER day by day lively customers and a 35% enhance in common video games performed per person.
The Grand Theft Auto collection additionally exceeded the corporate’s expectations. Grand Theft Auto V has bought in additional than 230 million models worldwide, whereas recurrent client spending for the collection grew 3%. Administration stated Grand Theft Auto VI had an distinctive begin to preorders forward of its Nov. 19 launch.
TTWO’s Cellular Enterprise Stays Uneven
Zynga carried out in keeping with administration’s expectations, although cellular Web Bookings declined 7% yr over yr. Toon Blast Web Bookings rose 8%, Phrases With Pals grew 8% and High Eleven elevated 15%.
NBA 2K All-Star in China surpassed 10 million registered customers since launch and is producing robust revenue margins. Administration additionally famous some strain on person acquisition however stated it was not seeing a broader client pullback in cellular.
Take-Two’s Prices Weigh on Quarterly Profitability
GAAP gross revenue declined 6.6% yr over yr to $882.5 million, whereas gross margin contracted to 57.5% from 62.8%. Value of revenues rose to $651.4 million and included a $43.4 million impairment cost tied to an unannounced third-party title that the corporate determined to not pursue.
Working bills edged down 0.6% to $918.0 million. Promoting and advertising and marketing bills fell 9.6% to $369.7 million, whereas analysis and growth bills elevated 6.8% to $273.8 million and basic and administrative bills rose 9.1% to $226.3 million.
Take-Two’s Stability Sheet & Money Movement Particulars
Money and money equivalents have been $1.36 billion as of June 30, 2026, down from $1.55 billion at March 31. Brief-term investments elevated to $461.7 million from $443.8 million.
Working money outflow was $168.8 million in contrast with $44.7 million a yr earlier.
TTWO’s Q2 & FY27 Outlook
For the fiscal second quarter, administration expects Web Bookings of $1.62-$1.67 billion and GAAP internet revenues of $1.42-$1.47 billion. GAAP loss is forecast at 84-75 cents per share, with recurrent client spending anticipated to say no about 5%.
Take-Two reiterated fiscal 2027 Web Bookings steerage of $8.0-$8.2 billion, representing roughly 20% development on the midpoint. GAAP internet revenues are nonetheless anticipated at $7.9-$8.1 billion, whereas GAAP earnings are projected at 55-75 cents per share. Recurrent client spending is anticipated to be flat yr over yr and symbolize 64% of Web Bookings.
For fiscal 2027, TTWO continues to count on working money stream above $1 billion. Capital expenditures at the moment are projected at roughly $290 million, up from the prior forecast due to a deliberate actual property buy, whereas administration expects to succeed in a internet money place by fiscal year-end.
Take-Two’s Zacks Rank & Different Shares to Contemplate
At the moment, TTWO carries a Zacks Rank #2 (Purchase).
Kontoor Manufacturers (KTB – Free Report) , Newsmax Inc. (NMAX – Free Report) and Viking Holdings (VIK – Free Report) are some similar-ranked shares that traders can think about within the broader Consumer Discretionary sector.
Kontoor Manufacturers, Newsmax and Viking Holdings carry a Zacks Rank #2 every at current. You’ll be able to see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kontoor Manufacturers is slated to announce second-quarter 2026 outcomes on Aug. 12. In the meantime, Newsmax will report on Aug. 13, and Viking Holdings is scheduled to launch outcomes on Aug. 19.
