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Take-Two
(NASDAQ:TTWO)
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Rating:56Neutral
Price Target:
$239.00
▲(3.17% Upside)
Action:Reiterated
Date:08/07/26
TTWO scores in the mid-range primarily because financial performance is improving (strong TTM revenue growth, higher gross margin, and positive operating/free cash flow) but is still held back by ongoing net losses and uneven free-cash-flow momentum. The earnings call adds support via reiterated strong FY27 bookings and >$1B operating cash flow expectations, while technicals are currently soft and valuation is constrained by a negative P/E and no stated dividend yield.
Positive Factors
Franchise / IP Strength
Take-Two owns enduring, top-tier IP (GTA, NBA 2K, Zynga portfolio) that generate multi-year revenue tails and recurring spend. Strong preorders and massive lifetime sales create a durable monetization funnel for live services, merchandising and licensing, supporting repeatable revenue and pricing power.
Negative Factors
Ongoing Net Losses
Despite revenue and gross margin improvement, persistent operating and net losses limit return generation and leave ROE negative. Until the company sustainably converts higher bookings and improved gross margins into consistent net profits, capital allocation and investor returns remain constrained and balance-sheet risk is not fully mitigated.
Read all positive and negative factors
Positive Factors
Negative Factors
Franchise / IP Strength
Take-Two owns enduring, top-tier IP (GTA, NBA 2K, Zynga portfolio) that generate multi-year revenue tails and recurring spend. Strong preorders and massive lifetime sales create a durable monetization funnel for live services, merchandising and licensing, supporting repeatable revenue and pricing power.
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
$46.17B
Dividend YieldN/A
Average Volume (3M)2.46M
Price to Earnings (P/E)―
Beta (1Y)0.84
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. Volume1,491,236
30 Day Avg. Volume2,456,338
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$292.71Price Target Upside26.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
EPS Forecast (FY)6.88
Revenue Forecast (FY)$8.56B
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 video games and by monetizing ongoing player engagement through recurrent consumer spending (live services). (1) Full game sales: Revenue comes from premium game purchases (digital downloads and physical u...
Take-Two Earnings Call Summary
Earnings Call Date:Aug 07, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 11, 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 | 986.20M | 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
Positive
231.65
Price Trends
237.86
Positive
226.37
Positive
229.04
Positive
Market Momentum
1.83
Negative
54.16
Neutral
55.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTWO, the sentiment is Positive. The current price of 231.65 is below the 20-day moving average (MA) of 241.70, below the 50-day MA of 237.86, and above the 200-day MA of 229.04, indicating a bullish trend. The MACD of 1.83 indicates Negative momentum. The RSI at 54.16 is Neutral, neither overbought nor oversold. The STOCH value of 55.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $78.57B | 15.56 | 21.64% | 2.53% | 8.50% | 7.29% | |
65 Neutral | $7.12B | 34.18 | 8.04% | ― | 11.20% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $46.17B | -142.75 | -9.12% | ― | 15.30% | 92.77% | |
54 Neutral | $27.31B | -26.75 | -288.77% | ― | 41.33% | 0.75% | |
50 Neutral | $957.36M | -3.44 | 82.92% | 10.87% | 5.84% | -421.33% |
* Communication Services Sector Average
TTWO
Take-Two
246.95
14.40
6.19%
NTES
NetEase
125.12
-2.08
-1.64%
BILI
Bilibili
17.44
-7.91
-31.20%
PLTK
Playtika Holding
2.51
-1.03
-29.16%
RBLX
Roblox
38.23
-81.72
-68.13%
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.