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Take-Two
(NASDAQ:TTWO)
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Rating:63Neutral
Price Target:
$268.00
▲(26.39% Upside)
Action:Reiterated
Date:05/22/26
The score is driven primarily by improving but still mixed fundamentals (strong revenue and better cash flow/balance sheet, but weak and volatile profitability), supported by strong technical momentum. Valuation is constrained by negative earnings (negative P/E), while the latest earnings call adds upside due to ambitious FY27 guidance tied to GTA VI, partially tempered by near-term softness and higher planned spending.
Positive Factors
Owned IP & live-service franchises
Take‑Two’s marquee franchises (GTA, Red Dead, NBA 2K) create durable competitive advantages through long sales tails, cross‑platform reach and franchise recognition. These assets generate recurring engagement, enable high-margin digital monetization and support licensing/merchandising for sustained multi-year revenue.
Negative Factors
Volatile profitability and recent net losses
Despite strong revenue momentum, recurring operating and net losses and negative ROE in recent years show profitability has been inconsistent. This variability undermines sustainable free cash flow conversion and raises execution risk for funding high-cost AAA and live‑service investments without eroding long‑term margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Owned IP & live-service franchises
Take‑Two’s marquee franchises (GTA, Red Dead, NBA 2K) create durable competitive advantages through long sales tails, cross‑platform reach and franchise recognition. These assets generate recurring engagement, enable high-margin digital monetization and support licensing/merchandising for sustained multi-year revenue.
Read all positive factors
Take-Two Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down where sales come from across regions (North America, EMEA, APAC, etc.), showing which markets drive growth and where exposure or opportunity exists. For investors, regional splits reveal reliance on core markets, sensitivity to local economic trends and currency moves, and potential upside in underpenetrated regions.
Breaks down where sales come from across regions (North America, EMEA, APAC, etc.), showing which markets drive growth and where exposure or opportunity exists. For investors, regional splits reveal reliance on core markets, sensitivity to local economic trends and currency moves, and potential upside in underpenetrated regions.
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The Fly
The FlyTake-Two (TTWO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$45.15B
Dividend YieldN/A
Average Volume (3M)2.83M
Price to Earnings (P/E)―
Beta (1Y)0.85
Revenue Growth18.16%
EPS Growth93.64%
CountryUS
Employees12,371
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-1.62
Shares Outstanding185,666,660
10 Day Avg. Volume2,134,867
30 Day Avg. Volume2,826,798
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 Cap0.97
Enterprise Value/Revenue6.57
Enterprise Value/Gross Profit11.48
Enterprise Value/Ebitda36.95
Forecast
1Y Price Target
$295.93Price Target Upside39.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
EPS Forecast (FY)6.77
Revenue Forecast (FY)$8.57B
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:May 21, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 07, 2026
Earnings Call Sentiment Positive
The call was markedly positive: management reported record fiscal results (net bookings, revenues, and operating cash flow), multiple franchises and mobile titles outperformed expectations, and the company provided aggressive FY27 guidance anchored by the highly anticipated Grand Theft Auto VI (Nov 19). At the same time, management flagged near-term conservatism around mobile, a planned increase in marketing and R&D spend (raising operating expenses), softer Q1 guidance versus prior year, and some uncertainty about post-launch GTA Online dynamics. Overall, the strength and scale of the highlights — record results, strong cash generation, and a clear catalyst (GTA VI) with extensive pipeline — materially outweigh the near-term lowlights and conservatism in mobile guidance.Positive Updates
Record Fiscal Year and Quarter Net Bookings
Fiscal 2026 net bookings of $6.72 billion (≈$750M above initial guidance) and fourth quarter net bookings of $1.58 billion (above the high end of guidance). Company cites record net bookings and operating performance for the year.
Negative Updates
Mobile Revenue Guidance Weakness for FY27
Management expects mobile net bookings to be down in fiscal 2027 versus fiscal 2026, driven by moderation in several mature Zynga titles (assumption in guidance). Mobile was a major contributor in FY26, making this a material headwind to recurrent revenue assumptions.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Fiscal Year and Quarter Net Bookings
Fiscal 2026 net bookings of $6.72 billion (≈$750M above initial guidance) and fourth quarter net bookings of $1.58 billion (above the high end of guidance). Company cites record net bookings and operating performance for the year.
Read all positive updates
Company Guidance
Take‑Two’s initial fiscal 2027 guidance calls for net bookings of $8.0–$8.2 billion (about +20% vs. FY26’s $6.72B and driven largely by the Nov. 19 launch of GTA VI), GAAP net revenue of $7.9–$8.1B, cost of revenue $3.5–$3.62B and total operating expenses $4.18–$4.2B (management OpEx +~8% YoY); the company expects operating cash flow in excess of $1B, to be in a net‑cash position by year‑end, and plans ~ $200M of capex. Management expects recurring consumer spending to be flat vs. FY26 and to represent ~65% of net bookings (assumes NBA 2K up high‑single digits, GTA up, mobile down), a label mix of ~36% Rockstar / 35% Zynga / 29% 2K, and for FY27 margins to benefit from scale and efficiency initiatives. First‑quarter FY27 guidance: net bookings $1.32–$1.37B (vs. Q1 FY26 $1.42B), RCS down ≈3%, GAAP revenue $1.45–$1.50B, cost of revenue $578–$594M, and operating expenses $926–$936M (management OpEx +~3% YoY).Take-Two Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
66
Positive
Cash Flow
57
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.66B | 5.63B | 5.35B | 5.35B | 3.50B |
| Gross Profit | 3.61B | 3.06B | 2.24B | 2.29B | 1.97B |
| EBITDA | 1.26B | -2.98B | -1.80B | 582.50M | 747.00M |
| Net Income | -298.20M | -4.48B | -3.74B | -1.12B | 418.00M |
Balance Sheet | |||||
| Total Assets | 9.38B | 9.18B | 12.22B | 15.86B | 6.55B |
| Cash, Cash Equivalents and Short-Term Investments | 1.99B | 1.47B | 776.00M | 1.01B | 2.55B |
| Total Debt | 2.96B | 4.11B | 3.53B | 3.49B | 250.20M |
| Total Liabilities | 5.87B | 7.04B | 6.55B | 6.82B | 2.74B |
| Stockholders Equity | 3.51B | 2.14B | 5.67B | 9.04B | 3.81B |
Cash Flow | |||||
| Free Cash Flow | 461.50M | -214.60M | -157.80M | -203.10M | 99.40M |
| Operating Cash Flow | 624.30M | -45.20M | -16.10M | 1.10M | 258.00M |
| Investing Cash Flow | -649.20M | -151.50M | -28.20M | -2.88B | 139.20M |
| Financing Cash Flow | 94.60M | 650.50M | -91.40M | 1.93B | -256.80M |
Take-Two Technical Analysis
Positive
212.04
Price Trends
230.11
Positive
217.73
Positive
230.90
Positive
Market Momentum
7.26
Negative
54.79
Neutral
33.92
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 212.04 is below the 20-day moving average (MA) of 239.59, below the 50-day MA of 230.11, and below the 200-day MA of 230.90, indicating a bullish trend. The MACD of 7.26 indicates Negative momentum. The RSI at 54.79 is Neutral, neither overbought nor oversold. The STOCH value of 33.92 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 | $84.21B | 16.74 | 21.64% | 2.19% | 8.50% | 7.29% | |
69 Neutral | $51.76B | 58.13 | 14.19% | 0.37% | 1.72% | -17.04% | |
65 Neutral | $7.43B | 53.40 | 8.04% | ― | 11.20% | ― | |
63 Neutral | $45.15B | -152.09 | -8.57% | ― | 18.16% | 93.64% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $39.63B | -35.25 | -276.20% | ― | 38.10% | -16.91% | |
52 Neutral | $1.46B | -4.90 | 113.59% | 9.98% | 7.30% | -307.46% |
* Communication Services Sector Average
TTWO
Take-Two
243.20
4.74
1.99%
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206.41
58.16
39.23%
NTES
NetEase
128.03
1.22
0.96%
BILI
Bilibili
17.70
-4.62
-20.70%
PLTK
Playtika Holding
3.83
-0.59
-13.43%
RBLX
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55.35
-56.48
-50.51%
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.