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Take-Two
(NASDAQ:TTWO)
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Rating:54Neutral
Price Target:
$207.00
▼(-11.13% Downside)
Action:Reiterated
Date:10/01/26
TTWO scores in the mid-range primarily because fundamentals are recovering (strong revenue and margin rebound, improved leverage, and positive operating/free cash flow), and the earnings call reinforced a sizable FY2027 growth and cash-flow outlook. These positives are tempered by continued net losses (driving a negative P/E) and weak technicals, with the stock trading below key moving averages and showing bearish momentum despite oversold readings.
Positive Factors
Franchise strength and recurring engagement
Take-Two's globally recognized franchises provide durable intellectual property, repeat releases, and established communities that support both upfront sales and recurring spending. Strong GTA and NBA 2K engagement can sustain monetization across console, PC, and online ecosystems over multiple periods.
Negative Factors
Bottom-line losses remain
Despite stronger revenue, margins, and EBITDA, Take-Two has not yet converted the recovery into consistent GAAP profitability. Continued operating and net losses can constrain retained capital, weaken resilience if launches disappoint, and leave earnings dependent on further execution improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Franchise strength and recurring engagement
Take-Two's globally recognized franchises provide durable intellectual property, repeat releases, and established communities that support both upfront sales and recurring spending. Strong GTA and NBA 2K engagement can sustain monetization across console, PC, and online ecosystems over multiple periods.
Read all positive factors
Take-Two Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down sales by region (North America, EMEA, Asia), highlighting where Take-Two’s franchises like GTA and NBA 2K are strongest and where growth or regulatory risk may lie. Geographic mix also determines currency exposure and where the company should focus marketing and localization spend to drive future growth.
Breaks down sales by region (North America, EMEA, Asia), highlighting where Take-Two’s franchises like GTA and NBA 2K are strongest and where growth or regulatory risk may lie. Geographic mix also determines currency exposure and where the company should focus marketing and localization spend to drive future growth.
Data provided by:
The Fly
The FlyTake-Two (TTWO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.09B
Dividend YieldN/A
Average Volume (3M)2.47M
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth15.30%
EPS Growth92.77%
CountryUS
Employees12,909
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-1.73
Shares Outstanding186,980,440
10 Day Avg. Volume2,455,025
30 Day Avg. Volume2,472,999
Financial Highlights & Ratios
PEG Ratio1.30
Price to Book (P/B)10.42
Price to Sales (P/S)5.50
P/FCF Ratio79.30
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue7.13
Enterprise Value/Gross Profit12.72
Enterprise Value/Ebitda38.00
Forecast
1Y Price Target
$295.78Price Target Upside26.98% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
EPS Forecast (FY)7.01
Revenue Forecast (FY)$8.59B
Take-Two Business Overview & Revenue Model
Company Description
Established in 1993 and headquartered in New York, New York, Take-Two Interactive Software, Inc. is a global leader in the development, publishing, and marketing of interactive entertainment experiences for consumers worldwide. The company's exten...
How the Company Makes Money
Take-Two makes money primarily by selling and monetizing video games and related digital content across console, PC, and mobile. Key revenue streams include: (1) Full game sales (physical and digital): revenue from initial purchases of new titles ...
Take-Two Earnings Call Summary
Earnings Call Date:Aug 07, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call was cautiously optimistic and largely positive: Take-Two delivered a better‑than‑expected quarter with strong franchise performance (notably NBA 2K and the Grand Theft Auto series), reiterated an ambitious FY27 bookings outlook (~$8.0B–$8.2B) backed by GTA VI momentum, and maintained healthy cash flow and margin discipline. Key challenges include a YoY decline in mobile net bookings (-7%), higher cost of revenue (including a $43M impairment), and a Q2 bookings guide below last year—factors management expects to be manageable but that introduce near‑term uncertainty. Overall, the positives (strong IP momentum, healthy bookings, and clear path to >$1B operating cash flow and net cash) outweigh the near‑term headwinds related to mobile and certain cost items.Positive Updates
Net Bookings Beat Guidance in Q1
First quarter net bookings of $1.39 billion, slightly above guidance range of $1.32B–$1.37B.
Negative Updates
Recurrent Consumer Spending and Mobile Weakness
Overall recurrent consumer spending declined 1% for the period (better than the guided -3%), and mobile net bookings declined 7% YoY. Management expects mobile to be down for the year due to last year's Color Block Jam comps and moderating trends in mature Zynga titles.
Read all updates
Q1-2027 Updates
Positive
Negative
Net Bookings Beat Guidance in Q1
First quarter net bookings of $1.39 billion, slightly above guidance range of $1.32B–$1.37B.
Read all positive updates
Company Guidance
Take-Two reiterated fiscal 2027 net bookings guidance of $8.0–$8.2 billion (≈20% growth at the midpoint vs. FY26) and said recurrent consumer spending should be roughly in line with FY26 and represent ~64% of net bookings; it expects GAAP net revenue of $7.9–$8.1 billion, cost of revenue of $3.54–$3.66 billion, total operating expenses of $4.15–$4.17 billion, management‑basis operating expense growth of ≈7%, operating cash flow in excess of $1.0 billion, a net‑cash position by year‑end, and planned capex of ≈$290 million. For Q2 it guided net bookings of $1.62–$1.67 billion (vs. $1.96B LY), recurrent spending down ≈5%, GAAP revenue $1.42–$1.47 billion and management operating expenses down ≈5%; Q1 actuals included $1.39B net bookings, $1.5B GAAP revenue, $651M cost of revenue (up 17%, incl. $43M impairment) and $918M operating expenses.Take-Two Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
56
Neutral
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.69B | 6.66B | 5.63B | 5.35B | 5.35B | 3.50B |
| Gross Profit | 3.75B | 3.81B | 3.06B | 2.24B | 2.29B | 1.97B |
| EBITDA | 1.25B | 1.24B | -2.98B | -1.80B | 582.50M | 747.00M |
| Net Income | -320.40M | -298.20M | -4.48B | -3.74B | -1.12B | 418.00M |
Balance Sheet | ||||||
| Total Assets | 9.06B | 9.38B | 9.18B | 12.22B | 15.86B | 6.55B |
| Cash, Cash Equivalents and Short-Term Investments | 1.83B | 1.99B | 1.47B | 776.00M | 1.01B | 2.55B |
| Total Debt | 2.94B | 2.96B | 4.11B | 3.53B | 3.49B | 250.20M |
| Total Liabilities | 5.46B | 5.87B | 7.04B | 6.55B | 6.82B | 2.74B |
| Stockholders Equity | 3.61B | 3.51B | 2.14B | 5.67B | 9.04B | 3.81B |
Cash Flow | ||||||
| Free Cash Flow | 326.10M | 461.50M | -214.60M | -157.80M | -203.10M | 99.40M |
| Operating Cash Flow | 500.20M | 624.30M | -45.20M | -16.10M | 1.10M | 258.00M |
| Investing Cash Flow | -664.80M | -649.20M | -151.50M | -28.20M | -2.88B | 139.20M |
| Financing Cash Flow | -493.20M | 94.60M | 650.50M | -91.40M | 1.93B | -256.80M |
Take-Two Technical Analysis
Negative
232.93
Price Trends
214.98
Negative
226.11
Negative
221.13
Negative
Market Momentum
-2.14
Negative
44.38
Neutral
53.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTWO, the sentiment is Negative. The current price of 232.93 is above the 20-day moving average (MA) of 205.31, above the 50-day MA of 214.98, and above the 200-day MA of 221.13, indicating a bearish trend. The MACD of -2.14 indicates Negative momentum. The RSI at 44.38 is Neutral, neither overbought nor oversold. The STOCH value of 53.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TTWO.
Take-Two Risk Analysis
Take-Two disclosed 48 risk factors in its most recent earnings report. Take-Two reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Take-Two Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $74.29B | 15.32 | 20.04% | 2.47% | 9.83% | -2.22% | |
62 Neutral | $173.95M | 2.31 | -88.88% | 21.33% | ― | ― | |
61 Neutral | $37.78B | -36.98 | -288.77% | ― | 41.33% | 0.75% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | $38.09B | -117.74 | -9.12% | ― | 15.30% | 92.77% | |
49 Neutral | $45.65M | -1.05 | -20.93% | ― | -13.26% | -46.94% | |
49 Neutral | $787.63M | -2.83 | 82.92% | 19.37% | 5.84% | -421.33% |
* Communication Services Sector Average
TTWO
Take-Two
203.69
-50.58
-19.89%
NTES
NetEase
118.61
-23.99
-16.82%
GDEV
Nexters
9.57
-14.79
-60.71%
MYPS
PLAYSTUDIOS
3.80
-5.69
-59.94%
PLTK
Playtika Holding
2.07
-1.64
-44.28%
RBLX
Roblox
52.89
-75.60
-58.84%
Take-Two Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Take-Two Signs Long-Term Xbox Publishing Agreement
Positive
Sep 30, 2026
On September 28, 2026, Take-Two Interactive Software, Inc. and Microsoft Corporation entered into a new long-term XBOX Publisher License Agreement, effective September 17, 2026, granting Take-Two rights to develop, publish, manufacture, market, di...
Executive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Take-Two Shareholders Approve Governance Changes and Director Slate
Neutral
Sep 22, 2026
On September 17, 2026, Take-Two held its annual meeting of stockholders virtually, where shareholders elected all nominated directors for terms expiring in 2027 and approved, on an advisory basis, the compensation of the company’s named exec...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.