Take-Two Interactive’s Record Earnings and Future Outlook

Take-Two Interactive ((TTWO)) has held its Q2 earnings call. Read on for the main highlights of the call.

Take-Two Interactive’s recent earnings call was marked by an overwhelmingly positive sentiment, driven by record-breaking net bookings and robust performances from key titles such as NBA 2K26 and several mobile games. Despite some challenges, including performance issues with Borderlands 4 and a delay in the release of Grand Theft Auto VI, the company expressed confidence in addressing these hurdles and maintaining a strong financial outlook.

Record-Breaking Net Bookings

Take-Two Interactive reported an impressive $1.96 billion in net bookings for the second quarter, setting a new record for the company. This achievement significantly exceeded expectations and marked the best second quarter in the company’s history, showcasing strong demand across its portfolio.

Strong Mobile Performance

The mobile segment experienced substantial growth, with Toon Blast seeing a 26% year-over-year increase and a 90% rise over two years. Rollic’s Color Block Jam achieved a net bookings record, and Zynga Poker’s successful launch on Steam further underscored the segment’s strength.

NBA 2K26 Success

NBA 2K26 emerged as a standout performer, setting multiple records with over 5 million units sold. This represented a double-digit increase over NBA 2K25, and recurrent consumer spending grew by an impressive 45%, highlighting the franchise’s enduring popularity.

Mafia: The Old Country and Borderlands 4 Launches

Mafia: The Old Country exceeded internal expectations, while Borderlands 4 received high critical praise and achieved the largest concurrent player count on Steam in the franchise’s history, despite some performance issues on PC.

Revised Financial Outlook

Take-Two raised its net bookings outlook for fiscal 2026 to between $6.4 billion and $6.5 billion, representing a 14% growth over fiscal 2025 at the midpoint. This revision reflects the company’s confidence in its ongoing projects and market position.

Borderlands 4 PC Performance Issues

The launch of Borderlands 4 was softer than anticipated due to optimization and performance challenges on PC. The company is actively working to address these issues to enhance player experience and engagement.

Grand Theft Auto VI Release Delay

Rockstar Games announced a delay in the release of Grand Theft Auto VI, now scheduled for November 19, 2026. This decision aims to ensure a polished product that meets high consumer expectations, although it may impact engagement with existing GTA titles.

Operating Expense Increase

Operating expenses rose due to higher performance-based compensation and investments in user acquisition. However, this was partially offset by a shift in some console marketing and IT expenses, reflecting strategic financial management.

Forward-Looking Guidance

Take-Two Interactive’s forward-looking guidance is optimistic, with a revised net bookings outlook for fiscal 2026 between $6.4 billion and $6.5 billion. The company anticipates NBA 2K and mobile titles to drive future growth, with recurrent consumer spending projected to grow approximately 11% and operating cash flow expected to reach $250 million.

In conclusion, Take-Two Interactive’s earnings call highlighted a predominantly positive outlook, driven by record-breaking net bookings and strong performances from key titles. While challenges such as the delay of Grand Theft Auto VI and Borderlands 4’s performance issues were acknowledged, the company remains optimistic about its future growth prospects and financial performance.