Take-Two Interactive reported that it is sticking to its launch date of November 19, 2026 for the launch of Grand Theft Auto VI. On top of that, it reported results for its first fiscal quarter slightly beat expectations.
Non-GAAP net bookings were $1.39 billion for the first fiscal quarter ended June 30, down 2.7% from $1.42 billion a year ago. The company said global excitement for the launch of Grand Theft Auto VI continues to build, with the title having an exceptional start to pre-orders. (A Netflix special with a deep dive into the game will air on August 27). GAAP net revenue was $1.53 billion, above the guidance of $1.45 billion to $1.5 billion.
This primarily reflected better-than-expected performance from NBA 2K and the Grand Theft Auto series. In early trading today, the stock is down 1.9% to $228.2 a share.
The stock price will be interesting to watch in after-hours trading on the news. Take-Two investors and gamers are probably overjoyed that Take-Two and Rockstar really plan to launch the game on November 19, but other game publishers are probably feeling a sense of doom as GTA VI is expected to dominate consumer spending in November and December — it’s already having an effect with at least $3.25 billion in first week sales expected based on preorders, according to market researcher Newzoo.
Total net bookings for the the first fiscal quarter ended June 30, 2026, were $1.39 billion, at the high end of the guidance of $1.51 billion to $1.56 billion range and above analyst expectations. Recurrent net bookings were up 7% in the quarter and were 82% of the net bookings.
“Our excellent first quarter results reflect the power of our portfolio and disciplined execution across all of our labels,” said Strauss Zelnick, CEO of Take-Two Interactive, in a statement. “With these positive trends and excitement around the November 19th launch of Grand Theft Auto VI, we are reiterating our Fiscal 2027 Net Bookings outlook of $8.0 to $8.2 billion. Looking further ahead, we expect to sustain this new level of scale and generate strong cash flows, setting us on a path to deliver continued growth and long-term shareholder returns.”
Take-Two itself said last quarter that it expected net bookings for the first fiscal quarter ending June 30 to be $1.32 billion to $1.37 billion, with recurrent consumer spending net bookings likely down 3%. GAAP revenue was expected to be $1.45 billion to $1.5 billion, while the GAAP net loss was expected to be $42 million to $27 million, or a net loss of 23 cents to 15 cents. The GAAP net loss came in at $34 million, or 18 cents a share, within the range expected. GAAP net revenue was $1.53 billion, above expectations.
Recurrent Consumer Spending (RCS) declined 1% for the period, which was favorable to Take-Two’s own guidance of a 3% decline, and accounted for 84% of net bookings. NBA 2K grew 7%, the Grand Theft Auto series rose 3%, and as expected, mobile declined 7% over last year. Physical disc sales, which have come into the limelight with Sony deciding to end them by January 2028, were 1% of Take-Two’s sales.
Last quarter, I was able to interview Zelnick about the results for about seven minutes. I asked if he was happy that there was no delay to the launch date of GTA IV or if he had context for sticking to the date. But he gave me nothing back then.
I also asked about how Take-Two’s outlook suggests that the company is expecting a higher scale of performance over the years, and not just because of GTA VI. He said he’s proud that Take-Two is now a multi-dimensional company, with live services, strong recurrent consumer spending and catalog sales. He was also pleased that data from Activate showed that American consumers consumption of games has grown in the past year to an hour and 45 minutes a day on average. That means gaming is not losing ground to other addiction-oriented entertainment categories, as feared by Matthew Ball, now chief strategy officer at Xbox.
In an analyst call that just started, Zelnick said, “Fiscal 2027 is off to an excellent start, led by the power of our diverse portfolio and the strong, consistent execution of our strategy all through our business. We delivered first-quarter net bookings with approximately $1.39 billion, slightly above the high end of our guidance range, primarily due to the outperformance of FDA 2K and the Grand Theft Auto series.”
He added, “We’re reiterating our fiscal 2027 outlook for net bookings of $8 billion to $8.2 billion dollars, which reflects both ongoing positive trends in our business and our high degree of confidence around the November 19th release of Grand Theft Auto 6. We expect to sustain this new level of scale and generate strong cash flows for the next several years as we release our robust development pipeline, capitalize on the incremental opportunities within our highly established kit franchises, and continue to apply our proven long-term approach to managing the company.”
He said he thinks that passion for the title will grow further from now through the release date. Asked why Take-Two went with a Netflix special for the GTA VI extended look, Zelnick said it’s a first-of-its-kind venture with Netflix, which he said is a great partner, and it’s part of the overall Rockstar marketing strategy. The goal is to be on every social media channel on earth. Asked if Netflix paid a partnership, he did not say. He said Rockstar arranged it and he would not disclose the terms as to whether Netflix paid a premium for the exclusivity.
As to the pricing for GTA VI at $80 and $100, Zelnick said game prices have not kept up with the pace of inflation in the last couple of decades. He said it would be a gross understatement to say GTA VI would be an incredible bargain as Rockstar is known for over-delivering.
As to the rising cost of hardware, he said, “The rising cost of hardware is not a good thing. we would argue that it is. I I don’t think it will slow us down, and because we’re delivering sxperiences that people want. However, a lower price point of hardware would be a good thing because it would be more hardware in people’s hands. So I cannot argue this is a positive, but we don’t see it as a [headwind].”
He noted “the advent of streaming” is right around the corner and machines that could not play games in the past will be able to do so. He thinks the overall installed base for game machines will grow in a material way. He noted the PC was 2% of sales 20 years ago and it could be 40% to 50% in today’s markets. And he noted “interactive entertainment remains the world’s pastime.”
He also answered a question about AI.
“We are first and foremost an entertainment company and always have been,” Zelnick said. “However, we’re an entertainment company that creates its entertainment in computers and always has. So this company, its products and its approach were built on AI and machine learning well before AI became a. We’re dyed in the wool, full adopters of new technology to the extent it enhances our ability to do what we do through the three part strategy, two parts of which are innovation and efficiency,” he said.
He added, “We have projects that fall into both the basic research and applied research methods here. Basic research side of the art is possible, and the applied research side, how we can innovate more and how we can create additional efficiencies, and that threads through our entire company.”
And he said, “The first of our core pillars is creativity, and we have 13,000 colleagues around the world. The vast majority of our creators every day — and we believe that technology can enhance their creativity. We do not believe we can or should replace their creative, and ultimately we make bespoke entertainment products. We make the best ones in the world, and technology should make it easier for incredibly creative people to innovate. But for better for worse, I happen to think it’s very much for the better. Those tools are not going to replace anyone. Unlike some of our competitors who are announcing opportunities to save hundreds of billions of dollars in AI, I’ve said since the beginning, the history of new technology efficiencies are being created, but then we find ways to do bigger and bigger things, and you know we actually don’t reduce the cost of doing those things and increase quality….It means making bigger and bigger hits that appeal to more and more consumers, and that’s our job. Our job is not to lead in technology. Our job is to lead in entertainment, and as happens, we use technology trying to do that.”
Zelnick said the level of preorders is unprecedented and astonishing and he is greatful for that.
As for why the company hasn’t changed its guidance after receiving great preorders, Zelnick said, “One of the reasons that we’re not changing our guidance, to be clear, is we haven’t sold one unit yet. You can cancel a preorder. We’re allergic to victory laps. One thing we certainly don’t do is take a victory lap before we run the event. The news is great so far. We’re incredibly excited. We couldn’t be more excited than we are, and yet we are, realistic and at best cautiously optimistic.”
Rockstar Games
The Grand Theft Auto series once again exceeded expectations, and to-date, Grand Theft Auto V has sold-in over 230 million units worldwide, unchanged from the last quarter. This probably means GTA Online did well. RCS for the series grew 3% and GTA+ continues to thrive, all led by a series of content offerings, including the addition of the Rockstar Mission Creator – an all-new suite of innovative and in-depth tools empowering the player community to bring missions to life.
With Rockstar Games’ recent announcement of Grand Theft Auto VI: An Extended Look coming on August 27 on Netflix, the company believes that consumers’ passion and anticipation for the next evolution of this iconic series will grow further leading up to the title’s November 19 release.
GTA+ continues to see significant growth year-over-year, led by the holiday update and highly attractive monthly benefits, such as the inclusion of NBA 2K26 in its games library.
2K
During the first fiscal quarter, NBA 2K26’s performance was outstanding and concluded a record year for the franchise. To date, the title has sold-in over 12 million units, reflecting 9% growth compared to NBA 2K25. This year’s title will release on September 4.
Engagement was up meaningfully during the quarter, with RCS growing 7%, driven by a 15% increase in average daily active users, a 25% increase in MyCareer daily active users, and a 35% increase in average games played per user.
The achievements of this year’s iteration of the series are a testament to Visual Concepts’ ability continually to deliver new, innovative ways for fans to stay engaged, and live-service execution remains a cornerstone of NBA 2K’s sustained success, the company said.
2K also supported Borderlands 4, Sid Meier’s Civilization VII, and WWE 2K26 with an array of new offerings, which enhanced player engagement and sentiment.
Mobile games
During Q1, Zynga performed in-line with expectations, and Take-Two said its many forever franchises continued to resonate with players.
Net bookings for Toon Blast grew 8% over last year. The title was supported by a new marketing campaign featuring Emmy-Nominated actor, Giancarlo Esposito.
Empires & Puzzles maintained steady momentum, anchored by a successful ninth anniversary campaign and the introduction of new heroes and character abilities.
Words With Friends exceeded our forecast, with net bookings growing 8% year-over-year, led by strong ad performance and higher player engagement with several features, including Dice Challenge, the title’s latest permanent one-on-one game mode.
Top Eleven surpassed our expectations, with Net Bookings increasing 15% year-over-year, as fans enjoyed a special in-game event featuring player-versus-environment matches in 10 international locations.
2K’s mobile offerings continue to perform well, with strong downloads and engagement across key titles. NBA 2K All-Star, the new mobile title in China in partnership with Tencent, surpassed 10 million registered users since launching last year and is yielding strong profit margins.
The company said mobile direct-to-consumer channel remains a significant driver of revenue and margin enhancement, with many of Zynga’s titles offering this feature, and further growth anticipated.
FY27 OUTLOOK
FY27 is poised to be a breakout year for Take-Two, led by the November 19 release of Grand Theft Auto VI – arguably, the most anticipated entertainment property of all time.
The initial financial outlook for FY27 includes record net bookings of $8 billion to $8.2 billion, which reflects approximately 20% growth over FY26, primarily due to the launch of Grand Theft Auto VI on November 19, along with successful execution across the entire portfolio.
For the fiscal year ending March 31, 2027, Take-Two estimates total GAAP revenue will hit $7.9 billion to $8.1 billion. Cost of revenue is expected to be $3.54 billion to $3.65 billion, while operating expenses are expected to hit $4.15 billion to $4.17 billion. Net income is expected to be $104 million to $143 million. EBITDA is expected to be $993 million to $1.05 billion. Net bookings are unchanged at $8 billion to $8.2 billion.
The company believes that FY27 will be an inflection point for Take-Two – one that will write an exciting new chapter in its history and provide the foundation for new levels of success and the creation of groundbreaking entertainment experiences.
With the ongoing positive trends in its business and excitement around the November 19 release of Grand Theft Auto VI, Take-Two is reiterating our fiscal 2027 net bookings outlook
Largest contributors to net bookings are expected to be the Grand Theft Auto series, NBA 2K, Toon Blast, Match Factory, Empires & Puzzles, Words With Friends, the Red Dead Redemption series, WWE 2K, Color Block Jam, and Zynga Poker.
The company continues to expect RCS to be in-line with FY27, and to represent 64% of net bookings. The underlying drivers remain unchanged, with NBA 2K projected to grow high single digits; the Grand Theft Auto series expected to be up; and mobile expected to be down, due to last year’s success of Color Block Jam, and the assumption that trends will moderate for several of Zynga’s mature mobile titles.
Now the firm expects the net bookings breakdown by labels to be roughly 37% Rockstar Games, 34% Zynga, and 29% 2K.
The company continues to forecast operating cash flow in excess of $1 billion, and remain on track to be in a net cash position by the end of the fiscal year. Now the plan is to deploy approximately $290 million of capital expenditures, which is up from our prior forecast, due to a planned real estate purchase.
Total operating expenses are now expected to range from $4.15 billion to $4.17 billion. On a management basis, we expect operating expense growth of approximately 7% year-over-year, which is down slightly from our prior forecast.
2Q FY27 OUTLOOK
Net bookings for the second fiscal quarter ending September 30 are expected to be $1.62 billion to $1.67 billion, compared to $1.96 billion a year earlier.
Release slate for Q2 includes NBA 2K27, as well as new content updates for various titles.
Largest contributors to net bookings are expected to be NBA 2K, the Grand Theft Auto series, Toon Blast, Match Factory, Empires & Puzzles, Words With Friends, Color Block Jam, the Borderlands franchise, the Red Dead Redemption series, and Zynga Poker.
The firm projects RCS to decline by approximately 5%, which assumes growth for NBA 2K and the Grand Theft Auto series, while mobile is expected to be down.
Operating expenses are planned to range from $1.01 billion to $1.02 billion. On a management basis, operating expenses are expected to decline by approximately 5% year-over-year, as last year included significant marketing expenses for the launch of Borderlands 4.
Long-Term Outlook:
Looking ahead, FY27 is on track to be a milestone year for Take-Two – led by the release of Grand Theft Auto VI.
The company said it has great ambitions, as the teams have carefully curated new opportunities that it believes will sustain this new level of scale for the foreseeable future, including live-service enhancements, franchise extensions, the launch of new IP, and international expansion. In addition, the firm will continue to evaluate accretwotive M&A.
Take-Two expect to sustain this new level of scale and generate strong cash flows for the next several years, as it releases its robust development pipeline; capitalize on incremental opportunities within highly-established hit franchises; and continue to apply our proven, long-term approach to managing the company.
As the firm brings these opportunities to fruition, it is confident in its ability to enhance its financial profile further and generate strong cash flows, setting us on a path to deliver continued growth and long-term shareholder returns.
The game slate
Take-Two doesn’t have many dates for upcoming games. 2K’s NBA 2K27 is coming out on the PC and consoles on September 4, with Rockstar’s GTA VI coming on the PS 5 and Xbox Series X/S on November 19.
Products without dates include PGA Tour 2K27, WWE 2K27, Top Goal on mobile, CSR3 on mobile, Judas from Ken Levine’s Ghost Story Games, 2K’s Project Ethos, and 2K’s next BioShock. Take-Two said nothing about the release of a new GTA Online or the PC version of Grand Theft Auto VI.
Take-Two said it has 13,000 employees.
In closing for the analyst call, Zelnick said, “The first thing and the most important thing is, we want to reiterate our enormous gratitude to our 13,000 colleagues around the world who work hard every day to deliver the best entertainment properties to consumers wherever they are, with whatever devices they have, whatever interest they have — and more often than not, our teams brilliantly succeed. That’s everything. We are aware of that. As I said, I’m grateful for that.”
He added, “We’re also really excited about the future we bring for our company and for our colleagues, and all of that should translate into enormous benefits for our shareholders. And we have a wonderful year that we’re in the process of doing, and things are going really well, and we have great expectations for the upcoming launch of GTA VI, NBA 2K, WWE, and lots of other titles coming from [other teams]. We expect that this will usher in a new period of success at a different and advanced level for Take-Two. We couldn’t feel more optimistic than we do with big smiles on our faces, and yet we know we have to wake up every day and do the hard work to deliver. That’s our goal.”
