Take-Two (TTWO) AI Stock Analysis

• Market Cap: $43.16B
• Dividend Yield: N/A
• Average Volume (3M): 1.63M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: 13.98%
• EPS Growth: -6.71%
• Country: US
• Employees: 12,371
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 1.46
• Shares Outstanding: 184,778,840
• 10 Day Avg. Volume: 2,421,549
• 30 Day Avg. Volume: 1,633,986
• PEG Ratio: -0.50
• Price to Book (P/B): 16.98
• Price to Sales (P/S): 6.44
• P/FCF Ratio: -169.10
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 7.89
• Enterprise Value/Gross Profit: 14.07
• Enterprise Value/Ebitda: -17.82
• 1Y Price Target: $286.67
• Price Target Upside: 19.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 3.28
• Revenue Forecast (FY): $6.46B

• Rating: 50 Neutral
• Price Target: $232.00 ▼(-3.52% Downside)

The overall stock score reflects a mixed outlook. The most significant factor is the positive sentiment from the earnings call, highlighting strong net bookings and growth in key franchises. However, this is offset by financial performance challenges, negative technical indicators, and a weak valuation due to profitability issues.

Positive Factors

Record-Breaking Net Bookings

Record-breaking net bookings indicate strong demand and effective monetization strategies, supporting long-term revenue growth and market position.

Strong Mobile Performance

Robust growth in the mobile segment diversifies revenue streams and capitalizes on the expanding mobile gaming market, enhancing future growth prospects.

NBA 2K26 Success

The success of NBA 2K26 demonstrates strong franchise appeal and recurring revenue potential, reinforcing Take-Two's competitive advantage in sports gaming.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth and weather economic downturns.

Decline in Free Cash Flow

A significant decline in free cash flow indicates challenges in cash generation, which could hinder investment in new projects and debt servicing.

Grand Theft Auto VI Release Delay

The delay of a major title like GTA VI can impact revenue and engagement, potentially affecting short-term financial performance and investor confidence.

Take-Two Business Overview & Revenue Model

Company Description

Take-Two Interactive Software, Inc. is a leading global developer, publisher, and marketer of interactive entertainment for consumers around the world. The company operates through two primary segments: Rockstar Games and 2K. Take-Two is renowned for its high-quality video game franchises, including Grand Theft Auto, NBA 2K, and Borderlands, and it also delves into mobile gaming through its Social Point subsidiary. The company focuses on creating immersive gaming experiences across various platforms, including consoles, PCs, and mobile devices.

How the Company Makes Money

Take-Two generates revenue primarily through the sale of video game software, which includes both physical and digital copies of its games. The company also earns significant income from downloadable content (DLC) and microtransactions, especially in its popular online multiplayer games. Additionally, Take-Two benefits from recurring revenue through its subscription services and in-game purchases. The company has established strong partnerships with console manufacturers, such as Sony and Microsoft, which help in promoting their titles on platforms like PlayStation and Xbox. Furthermore, Take-Two invests in mobile gaming, enhancing its revenue through the acquisition of companies like Social Point, and leveraging the growing mobile gaming market. The success of its franchises and ongoing engagement with players through online services and community events are critical factors contributing to its earnings.

Take-Two Financial Statement Overview

Summary

Take-Two is experiencing revenue growth but faces significant profitability and cash flow challenges. The company has a stable capital structure with manageable leverage, but negative returns on equity and cash flow issues highlight the need for operational improvements.

Income Statement

Take-Two's income statement shows a mixed performance. The TTM data reveals a gross profit margin of 56.1%, which is healthy, but the company is struggling with profitability, as indicated by a negative net profit margin of -64.3%. Revenue growth is positive at 7.3%, suggesting some top-line expansion. However, the negative EBIT and EBITDA margins highlight significant operational challenges.

Balance Sheet

The balance sheet presents a moderate picture. The debt-to-equity ratio has improved to 0.29 in the TTM, indicating a manageable level of leverage compared to previous periods. However, the return on equity is negative, reflecting ongoing profitability issues. The equity ratio stands at 34.0%, suggesting a stable capital structure.

Cash Flow

Cash flow analysis indicates challenges, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is low at 0.11, reflecting weak cash generation relative to net income. The free cash flow to net income ratio is 0.57, suggesting some ability to cover net losses with free cash flow, but overall cash flow health is concerning.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.22B	5.63B	5.35B	5.35B	3.50B	3.37B
Gross Profit	3.49B	3.06B	2.24B	2.29B	1.97B	1.84B
EBITDA	-2.75B	-2.98B	-1.80B	582.50M	747.00M	890.80M
Net Income	-4.00B	-4.48B	-3.74B	-1.12B	418.00M	588.90M
Balance Sheet
Total Assets	10.08B	9.18B	12.22B	15.86B	6.55B	6.03B
Cash, Cash Equivalents and Short-Term Investments	2.12B	1.47B	776.00M	1.01B	2.55B	2.73B
Total Debt	3.51B	4.11B	3.53B	3.49B	250.20M	191.27M
Total Liabilities	6.65B	7.04B	6.55B	6.82B	2.74B	2.70B
Stockholders Equity	3.43B	2.14B	5.67B	9.04B	3.81B	3.33B
Cash Flow
Free Cash Flow	192.00M	-214.60M	-157.80M	-203.10M	99.34M	843.39M
Operating Cash Flow	357.90M	-45.20M	-16.10M	1.10M	257.98M	912.32M
Investing Cash Flow	-397.50M	-151.50M	-28.20M	-2.88B	139.22M	-806.72M
Financing Cash Flow	671.50M	650.50M	-91.40M	1.93B	-256.81M	-57.34M

Take-Two Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 240.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTWO, the sentiment is Neutral. The current price of 240.46 is below the 20-day moving average (MA) of 246.22, below the 50-day MA of 251.17, and above the 200-day MA of 230.46, indicating a neutral trend. The MACD of -4.46 indicates Positive momentum. The RSI at 43.46 is Neutral, neither overbought nor oversold. The STOCH value of 46.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TTWO.

Take-Two Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTES	81 Outperform	$86.06B	18.68	24.36%	2.08%	2.86%	19.96%
EA	68 Neutral	$50.07B	58.68	13.20%	0.38%	-1.45%	-11.99%
PLTK	63 Neutral	$1.48B	17.00	―	9.57%	7.49%	-60.32%
BILI	62 Neutral	$10.88B	102.18	5.30%	―	16.84%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TTWO	50 Neutral	$43.16B	―	-86.61%	―	13.98%	-6.71%
RBLX	48 Neutral	$71.08B	―	-324.24%	―	32.70%	12.57%

Take-Two Corporate Events

Take-Two Interactive’s Record Earnings and Future Outlook

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.

Take-Two Interactive Reports Strong Q2 2026 Results

Take-Two Interactive Software, Inc. is a prominent developer, publisher, and marketer of interactive entertainment products, primarily operating through its Rockstar Games, 2K, and Zynga labels, known for creating engaging entertainment experiences across multiple platforms.

Take-Two Approves 2017 Stock Plan Amendment

On September 18, 2025, Take-Two Interactive Software, Inc. held its annual stockholders meeting, where several key decisions were made. The amendment and restatement of the 2017 Stock Incentive Plan were approved, alongside the election of directors and the ratification of Ernst & Young LLP as independent auditors for the fiscal year ending March 31, 2026. These decisions reflect the company’s ongoing commitment to strategic governance and financial oversight, potentially impacting its operational efficiency and stakeholder confidence.

The most recent analyst rating on (TTWO) stock is a Buy with a $275.00 price target. To see the full list of analyst forecasts on Take-Two stock, see the TTWO Stock Forecast page.

Take-Two Announces New Investor Presentation Materials

On September 10, 2025, Take-Two Interactive Software, Inc. announced that its senior management and certain board members will utilize new investor presentation materials for shareholder meetings. The company reported strong financial results for Q1 FY2026, with net revenue of $1.50 billion, and highlighted its ambitious development pipeline, including major upcoming titles like Grand Theft Auto VI. The company also emphasized its commitment to shareholder value and detailed its diverse board composition and executive compensation structure, which is heavily performance-based.

The most recent analyst rating on (TTWO) stock is a Buy with a $275.00 price target. To see the full list of analyst forecasts on Take-Two stock, see the TTWO Stock Forecast page.

Take-Two Approves Deferred Compensation Plan for Employees

On August 29, 2025, Take-Two Interactive Software, Inc.’s Board of Directors approved a nonqualified deferred compensation plan for key employees, effective September 1, 2025. This plan allows select U.S.-based employees and directors to defer portions of their salary or bonuses, with the company retaining the right to amend or terminate the plan at its discretion.

The most recent analyst rating on (TTWO) stock is a Buy with a $275.00 price target. To see the full list of analyst forecasts on Take-Two stock, see the TTWO Stock Forecast page.

Take-Two Interactive’s Strong Start to Fiscal 2026

The recent earnings call for Take-Two Interactive reflected a strong start to fiscal 2026, marked by significant achievements in net bookings and the performance of key franchises such as NBA 2K and Grand Theft Auto. The overall sentiment was positive, with optimism surrounding upcoming releases and the potential for continued growth. However, there were some concerns about a potential slowdown in the mobile segment and rising operating expenses.

Take-Two Interactive Raises Fiscal Year Outlook

Take-Two Interactive Software, Inc. is a prominent developer, publisher, and marketer of interactive entertainment, known for its popular franchises such as Grand Theft Auto and NBA 2K, operating primarily through its Rockstar Games, 2K, and Zynga labels.