Take-Two Interactive (TTWO)
NASDAQ:TTWO
Top Page
Take-Two
(NASDAQ:TTWO)
Select Model
Select Model
Rating:57Neutral
Price Target:
$220.00
▲(13.96% Upside)
Action:ReiteratedDate:02/04/26
The score is held back primarily by very weak profitability despite improving cash generation and manageable leverage. A strong earnings update with raised net bookings and improved operating cash flow outlook provides meaningful support, but technicals remain bearish with the stock below major moving averages and negative momentum, and valuation is constrained by losses and the lack of dividend yield.
Positive Factors
High recurring consumer spending
A large and growing share of net bookings from recurrent consumer spending (≈78% guidance) improves revenue predictability and monetization durability. Steady in‑game spending across live services reduces reliance on new releases and supports multi‑period cash flow generation.
Negative Factors
Deeply negative operating and net margins
Severely negative margins indicate that operating costs, non‑cash charges or one‑off items are overwhelming gross profit, limiting the company’s ability to convert revenue into sustainable earnings. This constrains long‑term returns and investment capacity despite healthy gross margins.
Read all positive and negative factors
Positive Factors
Negative Factors
High recurring consumer spending
A large and growing share of net bookings from recurrent consumer spending (≈78% guidance) improves revenue predictability and monetization durability. Steady in‑game spending across live services reduces reliance on new releases and supports multi‑period cash flow generation.
Read all positive factors
Take-Two (TTWO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.13B
Dividend YieldN/A
Average Volume (3M)1.97M
Price to Earnings (P/E)―
Beta (1Y)0.80
Revenue Growth13.98%
EPS Growth-6.71%
CountryUS
Employees12,371
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)1.23
Shares Outstanding185,175,460
10 Day Avg. Volume2,011,249
30 Day Avg. Volume1,969,528
Financial Highlights & Ratios
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 Cap1.05
Enterprise Value/Revenue5.62
Enterprise Value/Gross Profit10.16
Enterprise Value/Ebitda-13.46
Forecast
1Y Price Target
$288.06Price Target Upside49.22% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)3.9
Revenue Forecast (FY)$6.66B
Take-Two Business Overview & Revenue Model
Company Description
Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. The company offers its products under the Rockstar Games, 2K, Private Division, and T2 Mobile Games names. It develop...
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...
Take-Two Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyTake-Two Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 14, 2026
Earnings Call Sentiment Positive
The call presented strong, broad-based operational momentum: a sizable Q3 beat on net bookings, double-digit revenue growth, robust recurring consumer spending, exceptional performance from NBA 2K, GTA and multiple mobile titles, and a raised operating cash flow outlook. Management highlighted continued mobile DTC progress, AI adoption, and a deep product pipeline culminating in GTA VI. Headwinds are modest in comparison — a slightly conservative Q4 guide vs last year, near-term margin pressures from rising cost of revenue and expenses, market concern over AI affecting stock sentiment, and reliance on the upcoming blockbuster release. Taken together, the positive results, upgraded guidance, and clear execution across labels significantly outweigh the listed lowlights.Positive Updates
Quarterly Net Bookings Beat and Raised Full-Year Outlook
Q3 net bookings of $1.76B meaningfully exceeded guidance ($1.55B–$1.6B). Management raised full-year net bookings guidance to $6.65B–$6.7B (Strauss earlier referenced up to $7.0B), implying ~18% growth year-over-year at the midpoint and ~ $725M above the initial outlook referenced earlier in the call.
Negative Updates
Q4 Net Bookings Guidance Slightly Below Prior Year
Q4 net bookings guidance of $1.51B–$1.56B compares to $1.58B in the prior year, implying a slight year-over-year decrease at the midpoint for the quarter.
Read all updates
Q3-2026 Updates
Positive
Negative
Quarterly Net Bookings Beat and Raised Full-Year Outlook
Q3 net bookings of $1.76B meaningfully exceeded guidance ($1.55B–$1.6B). Management raised full-year net bookings guidance to $6.65B–$6.7B (Strauss earlier referenced up to $7.0B), implying ~18% growth year-over-year at the midpoint and ~ $725M above the initial outlook referenced earlier in the call.
Read all positive updates
Company Guidance
Take-Two raised its outlook after a strong Q3: net bookings were $1.76 billion (well above guidance of $1.55–$1.60B), and the company now expects FY26 net bookings of roughly $6.65–$7.00 billion (about 18% growth at the midpoint and ~ $725M above the May outlook); Q4 net bookings are guided to $1.51–$1.56B (vs $1.58B LY). Recurrent consumer spending is expected to grow ~17% for the year and represent ~78% of net bookings (Q3 RCS rose 23% and was 76% of net bookings; Q4 RCS is guided to ~+7% with NBA 2K driving a high‑teens/low‑20s uplift in Q4, mobile mid‑single digits, and a modest decline in GTA Online). FY GAAP net revenue is guided to $6.55–$6.60B, FY cost of revenue $2.78–$2.80B, and FY operating expenses $3.96–$3.97B (management opex growth ~8%); operating cash flow forecast was raised to $450M (from $250M), capex remains ~ $180M. Q3 GAAP net revenue was $1.7B (+25%), cost of revenue $754M (+26%), and operating expenses $984M (+10%); management‑basis opex showed leverage versus top‑line growth. Net bookings by label are projected ~46% Zynga, 38% 2K, and 16% Rockstar.Take-Two Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
45
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.56B | 5.63B | 5.35B | 5.35B | 3.50B | 3.37B |
| Gross Profit | 3.63B | 3.06B | 2.24B | 2.29B | 1.97B | 1.84B |
| EBITDA | -2.74B | -2.98B | -1.80B | 582.50M | 747.00M | 890.80M |
| Net Income | -3.96B | -4.48B | -3.74B | -1.12B | 418.00M | 588.90M |
Balance Sheet | ||||||
| Total Assets | 10.01B | 9.18B | 12.22B | 15.86B | 6.55B | 6.03B |
| Cash, Cash Equivalents and Short-Term Investments | 2.37B | 1.47B | 776.00M | 1.01B | 2.55B | 2.73B |
| Total Debt | 3.88B | 4.11B | 3.53B | 3.49B | 250.20M | 191.27M |
| Total Liabilities | 6.51B | 7.04B | 6.55B | 6.82B | 2.74B | 2.70B |
| Stockholders Equity | 3.50B | 2.14B | 5.67B | 9.04B | 3.81B | 3.33B |
Cash Flow | ||||||
| Free Cash Flow | 487.80M | -214.60M | -157.80M | -203.10M | 99.34M | 843.39M |
| Operating Cash Flow | 667.90M | -45.20M | -16.10M | 1.10M | 257.98M | 912.32M |
| Investing Cash Flow | -421.60M | -151.50M | -28.20M | -2.88B | 139.22M | -806.72M |
| Financing Cash Flow | 666.90M | 650.50M | -91.40M | 1.93B | -256.81M | -57.34M |
Take-Two Technical Analysis
Negative
193.05
Price Trends
212.22
Negative
229.27
Negative
235.42
Negative
Market Momentum
-5.44
Positive
31.36
Neutral
17.93
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTWO, the sentiment is Negative. The current price of 193.05 is below the 20-day moving average (MA) of 205.70, below the 50-day MA of 212.22, and below the 200-day MA of 235.42, indicating a bearish trend. The MACD of -5.44 indicates Positive momentum. The RSI at 31.36 is Neutral, neither overbought nor oversold. The STOCH value of 17.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $67.91B | 18.20 | 22.14% | 2.19% | 5.69% | 32.87% | |
70 Outperform | $50.55B | 145.12 | 11.05% | 0.37% | -1.45% | -11.99% | |
65 Neutral | $9.53B | 62.04 | 8.04% | ― | 16.84% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $35.13B | -126.36 | -126.41% | ― | 13.98% | -6.71% | |
52 Neutral | $1.04B | -7.20 | 119.44% | 9.98% | 7.49% | -60.32% | |
52 Neutral | $37.07B | -52.47 | -290.61% | ― | 32.70% | 12.57% |
* Communication Services Sector Average
TTWO
Take-Two
189.69
-17.56
-8.47%
EA
Electronic Arts
202.01
58.11
40.38%
NTES
NetEase
109.26
8.74
8.70%
BILI
Bilibili
22.33
3.22
16.85%
PLTK
Playtika Holding
2.73
-2.06
-43.01%
RBLX
Roblox
52.31
-5.98
-10.26%
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.