Game On: Take-Two reports mixed Q4 earnings results

“Game On” is The Fly’s weekly recap of the stories powering up or beating down video game stocks.

TAKE-TWO REPORTS MIXED Q4 EARNINGS RESULTS: Last week, Take-Two (TTWO) reported a fourth quarter loss per share of ($21.08) on net bookings of $1.58B, which compared to a loss per share of ($17.02) for the same period last year and analyst net bookings estimates of $1.55B. GAAP results include impairment charges of $3.55B related to goodwill and $176.3M for acquisition-related intangible assets. The company also guided to a Q1 loss per share of (78c) to (65c) on net bookings of $1.25B-$1.3B, which compared to analyst estimates of (78c) and $1.28B, respectively. Additionally, Take-Two forecast a FY26 loss per share of ($2.79) to ($2.45) on net bookings of $5.9B-$6B.

“We achieved outstanding results in our 2025 Fiscal Year, with each of our labels contributing meaningfully to our performance. Our Fiscal 2026 outlook reflects continuing positive momentum, with Net Bookings guidance of $5.9B to $6B. As we bring our exciting lineup to market, including Grand Theft Auto VI in Fiscal 2027, we expect to achieve record levels of Net Bookings that will establish a new baseline for our business and set us on a path of enhanced profitability,” said CEO Strauss Zelnick.

Following the report, JPMorgan raised the firm’s price target on Take-Two to $250 from $225 and kept an Overweight rating on the shares. The company reported strong fiscal Q4 results, with broad-based outperformance across key titles driving bookings to the top-end of guidance, the analyst said. The firm added the biggest news of the quarter came a few weeks ago when Take-Two announced the delay of GTA VI, “which made it all the more important that other franchises delivered in the near-term.”

Meanwhile, Benchmark raised the firm’s price target on Take-Two to $250 from $225 and kept a Buy rating on the shares after what the firm calls “a strong finish to fiscal 2025,” driven by broad based performance across core franchises and mobile. Excitement for Grand Theft Auto VI continues to build, as evidenced by trailer two having surpassed 475M cross platform views in its first 24 hours, noted the analyst, who sees this “reinforcing the franchise’s global cultural resonance and the anticipated impact of its fiscal 2027 release.”

Additionally, Wedbush raised the firm’s price target on Take-Two to $269 from $253 and kept an Outperform rating on the shares. The firm noted that the practical effect of Take-Two delaying the launch of Grand Theft Auto VI from “fall 2025” to May 26, 2026, is that the company guided substantially below consensus estimates for FY26. The company’s initial guidance will disappoint some investors. Still, Wedbush remains bullish and says it believes the premium multiple is warranted because the company has many levers to pull to drive profits well above our estimates, including the higher price point for GTA VI, integration of the game into GTA Online, and significant margin expansion from its first-party web store. The firm thinks investors will ultimately appreciate the excess free cash flow generation opportunity as the already-spent game development costs are amortized.

UBISOFT REPORTS Q4 NET BOOKINGS: Last week, Ubisoft (UBSFY) reported Q4 net bookings of EUR 902.3M, which compared to net bookings of EUR 872.7M for the same period last year. The company also guided to Q1 net bookings of EUR 310M and ‘stable’ FY25/FY26 net bookings year-on-year. Ubisoft also expects FY25/FY26 break-even non-IFRS operating income and negative free cash flow. Following the closing of the Tencent (TCEHY) transaction, the group expects to maintain a consolidated net debt position of around zero. The group expects to return to positive non-IFRS operating income and free cash flow generation in FY27 and to see significant content coming from its largest brands in FY27 and FY28.

Yves Guillemot, CEO, said, “This year has been a challenging one for Ubisoft, with mixed dynamics across our portfolio, amid intense industry competition. Despite these headwinds, Ubisoft managed to deliver positive free cash flow generation over the fiscal year, reflecting the discipline applied across the Group.”

Following the news, Oddo BHF downgraded Ubisoft to Underperform from Neutral with a EUR 9.00 price target.

Meanwhile, Deutsche Bank lowered the firm’s price target on Ubisoft to EUR 10.50 from EUR 12.00 and kept a Hold rating on the shares.

NETEASE REPORTS Q1 EARNINGS: Last week, NetEase (NTES) reported Q1 earnings per share of $2.41 on revenue of $3.79B.

“We entered 2025 with solid momentum, fueled by our ongoing innovation and new titles that strengthen our reach across genres and resonate with players around the world,” said William Ding, CEO. “In addition to the strong performance of our latest games, our long-standing franchises continue to thrive, powered by outstanding content updates and continuous gameplay enhancements that bring fresh takes to player experiences. As we reimagine new gaming possibilities, we remain rooted in innovation and long-term operations, partnering with top talent and strategic collaborators to deliver engaging experiences to players everywhere.”

Following the report, Barclays raised the firm’s price target on NetEase to $118 from $104 and kept an Equal Weight rating on the shares. The company’s new game launches were strong and the beat on profits was mostly driven by lower expenses, which will gradually ramp back up, the analyst said.

ACTIVISION TO END ‘CALL OF DUTY: WARZONE MOBILE’ DOWNLOADS: Last week, Microsoft’s (MSFT) Activision said in a post on X, “We deeply appreciate your dedication and passion for Call of Duty: Warzone Mobile. Going forward, we will be streamlining the scope of the game. This decision was made after careful consideration of various factors and while we’re proud of the accomplishment in bringing Call of Duty: Warzone to mobile in an authentic way, it unfortunately has not met our expectations with mobile-first players like it has with PC and console audiences. As a result, we will no longer be delivering new seasonal content and gameplay updates to the mobile version. Effective immediately, players will no longer be able to purchase Call of Duty Points or Black Cell using real currency in Call of Duty: Warzone Mobile. Sunday, May 18, 2025 will be the last day the game can be downloaded from the Google Play and Apple’s App Store and social features across both mobile platforms will be retired. Players who have the game installed before Monday, May 19, 2025 will still have access to the game with continued cross-progression of shared inventories using existing content, and servers with matchmaking for online play. Any unspent COD Points can also be redeemed in-game toward available content in the Store. We know that this news may be disappointing, and we truly appreciate the support, passion, feedback, and dedication from our community.”

EPIC SAYS APPLE BLOCKED ACCESS TO FORTNITE: Apple (AAPL) has (KKR), Disney (DIS), and Sony (SONY).

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