Take-Two (TTWO) AI Stock Analysis

• Market Cap: $42.25B
• Dividend Yield: N/A
• Average Volume (3M): 1.86M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: 7.33%
• EPS Growth: -7.46%
• Country: US
• Employees: 12,371
• Sector: Communication Services
• Sector Strength: 91
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.61
• Shares Outstanding: 184,470,210
• 10 Day Avg. Volume: 1,696,471
• 30 Day Avg. Volume: 1,864,982
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 7.82
• Enterprise Value/Gross Profit: 14.02
• Enterprise Value/Ebitda: -13.70
• 1Y Price Target: $269.21
• Price Target Upside: 17.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

• Rating: 55 Neutral
• Price Target: $238.00 ▲(3.92% Upside)

The overall stock score is primarily influenced by Take-Two's challenging financial performance, with consistent losses and high leverage. However, the positive guidance and strong performance in key franchises from the earnings call provide a significant boost. The technical analysis and valuation indicate a neutral to slightly negative outlook, while the recent corporate event adds a modest positive impact.

Positive Factors

Financial Performance

Take-Two delivered a strong Q1 FY26, exceeding expectations across all major financial metrics.

Future Growth

Grand Theft Auto VI, scheduled for release on May 26, 2026, is a massive upcoming catalyst that could redefine the company’s financial trajectory and elevate engagement across the franchise ecosystem.

Market Position

Take-Two continues to operate from a leadership position in premium console and PC publishing, while building scale in mobile through Zynga.

Negative Factors

Mobile Segment

Forward guidance implies a major slowdown at mobile, which is suspected to be conservative.

Product Launch Challenges

Initial technical issues and lack of content at the launch of GTA Online indicate challenges that needed addressing for future growth.

Take-Two Business Overview & Revenue Model

Company Description

Take-Two Interactive Software, Inc. is a leading developer, publisher, and marketer of interactive entertainment for consumers around the globe. The company operates through two primary segments: Rockstar Games and 2K. Take-Two is well-known for its critically acclaimed franchises, including Grand Theft Auto, NBA 2K, and Red Dead Redemption. The company focuses on creating high-quality gaming experiences across various platforms, including consoles, PC, and mobile devices, and is committed to innovation in the gaming industry.

How the Company Makes Money

Take-Two generates revenue primarily through the sales of video games, downloadable content (DLC), and in-game microtransactions. The company benefits from a diverse portfolio of successful game franchises that drive significant sales during both initial launches and subsequent years. Key revenue streams include retail and digital sales of games, subscriptions, and ongoing monetization of online gaming services. Additionally, Take-Two has established strong partnerships with various platforms, including consoles like PlayStation and Xbox, which enhance distribution and visibility. The rise of esports and online gaming has also contributed to revenue growth through in-game purchases and seasonal content updates, further boosting earnings.

Take-Two Financial Statement Overview

Summary

Take-Two's financial performance is challenged by negative EBIT and net income, despite healthy revenue growth. The balance sheet shows increasing leverage, and cash flows are negative, indicating inefficiencies and potential liquidity risks.

Income Statement

Take-Two's income statement shows significant challenges, with negative EBIT and net income in recent years. The company experienced a notable revenue growth from 2022 to 2023 but faced a decline in EBIT and net income margins. Gross profit margin remains healthy but is overshadowed by large operating losses.

Balance Sheet

The balance sheet reflects a moderate position, with a manageable debt-to-equity ratio and a decrease in stockholders' equity over time. The equity ratio has reduced, indicating increased financial leverage, posing potential risks if not managed.

Cash Flow

Cash flow analysis reveals challenges with negative operating and free cash flows in recent periods. The free cash flow growth rate is concerning, and cash flow ratios indicate inefficiencies in converting net income into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.80B	5.63B	5.35B	5.35B	3.50B	3.37B
Gross Profit	3.24B	3.06B	2.68B	2.29B	1.97B	1.84B
EBITDA	-3.31B	-2.91B	-1.72B	656.80M	690.56M	876.29M
Net Income	-4.23B	-4.48B	-3.74B	-1.12B	418.00M	588.90M
Balance Sheet
Total Assets	9.68B	9.18B	12.22B	15.86B	6.55B	6.03B
Cash, Cash Equivalents and Short-Term Investments	2.04B	1.48B	776.00M	1.01B	2.55B	2.73B
Total Debt	3.51B	4.11B	3.53B	3.49B	250.22M	191.27M
Total Liabilities	6.20B	7.04B	6.55B	6.82B	2.74B	2.70B
Stockholders Equity	3.48B	2.14B	5.67B	9.04B	3.81B	3.33B
Cash Flow
Free Cash Flow	-58.30M	-214.60M	-157.80M	-203.10M	99.34M	843.39M
Operating Cash Flow	101.10M	-45.20M	-16.10M	1.10M	257.98M	912.32M
Investing Cash Flow	-153.60M	-151.50M	-28.20M	-2.88B	139.22M	-806.72M
Financing Cash Flow	672.30M	650.50M	-91.40M	1.93B	-256.81M	-57.34M

Take-Two Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 229.03
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 229.03 is above the 20-day moving average (MA) of 227.17, below the 50-day MA of 232.94, and above the 200-day MA of 210.40, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 49.35 is Neutral, neither overbought nor oversold. The STOCH value of 45.17 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	80 Outperform	$82.10B	17.89	24.36%	2.09%	2.86%	19.96%
EA	77 Outperform	$42.89B	43.03	15.46%	0.44%	2.68%	-6.15%
RBLX	72 Outperform	$81.47B	―	-401.21%	―	27.39%	16.59%
BILI	68 Neutral	$9.62B	330.30	1.58%	―	22.89%	―
Sector *	60 Neutral	$43.36B	3.95	-13.01%	4.04%	1.89%	-42.25%
PLTK	59 Neutral	$1.41B	16.23	-220.61%	10.70%	4.98%	-60.29%
TTWO	55 Neutral	$42.25B	―	-89.29%	―	7.33%	-7.46%

Take-Two Corporate Events

Take-Two Completes $1.04 Billion Stock Offering

On May 20, 2025, Take-Two Interactive Software, Inc. announced the pricing of an underwritten public offering of 4,750,000 shares of its common stock at $225.00 per share, with an option for underwriters to purchase an additional 712,500 shares. The offering, which closed on May 22, 2025, is expected to generate net proceeds of approximately $1.04 billion, or $1.19 billion if the option is fully exercised, intended for general corporate purposes including debt repayment and future acquisitions. This strategic move is likely to impact Take-Two’s financial flexibility and market positioning, potentially benefiting stakeholders by supporting growth initiatives.