Take-Two (TTWO) Q2 2027 Earnings Report

The call was strongly optimistic overall. The company reported several second-quarter shortfalls, including net bookings below guidance, a 9% decline in recurrent consumer spending versus a planned 5% decline, a 16% revenue decline and softer-than-forecast NBA 2K performance. However, these were outweighed by extraordinary Grand Theft Auto VI preorder demand, continued Grand Theft Auto V growth, major franchise milestones, solid performance across several mobile titles, lower operating expenses and the reiterated $8 billion to $8.2 billion fiscal 2027 net bookings outlook.

Take-Two reiterated its fiscal 2027 net bookings outlook of $8 billion to $8.2 billion, expects recurrent consumer spending to be in line with fiscal 2026, representing 65% of net bookings, with strong growth for the Grand Theft Auto series, high single-digit growth for NBA 2K and a decline in mobile; label contributions are projected at roughly 37% Rockstar Games, 34% Zynga and 29% 2K, with operating cash flow in excess of $1 billion, a net cash position by fiscal year-end and approximately $290 million of capital expenditures. GAAP net revenue is expected to range from $7.98 billion to $8.18 billion, cost of revenue from $3.68 billion to $3.8 billion and operating expenses from $4.08 billion to $4.1 billion, while management-basis operating expense growth is expected to be approximately 5% year-over-year. For fiscal third quarter, net bookings are projected to range from $3.35 billion to $3.5 billion compared to $1.76 billion in the prior year, recurrent consumer spending is projected to increase by approximately 12%, GAAP net revenue to range from $3.27 billion to $3.42 billion, cost of revenue from $1.65 billion to $1.73 billion and operating expenses from $1.16 billion to $1.18 billion, and management-basis operating expenses are expected to grow by approximately 21% year-over-year.