Take-Two Interactive Software Inc

Take-Two Interactive Software reported first-quarter 2026 sales of US$1,422.8 million, revenue of US$1,533.9 million and a wider net loss of US$34.1 million, while guiding to a second-quarter net revenue range of US$1,420 million to US$1,470 million and a full-year 2027 outlook that now includes a small net profit. The company's full-year 2027 guidance calls for net income of US$104 million to US$143 million on US$7,900 million to US$8,100 million of net revenue, shifting from expected annual losses to modest profitability. The update frames how much room Take-Two has to absorb higher operating expenses while still benefiting from its pipeline, recurrent spending, and mobile initiatives tied to the Zynga portfolio. The biggest current risk remains that rising development and marketing costs outpace the contribution from new and existing titles.

Take-Two Interactive Software reported first-quarter fiscal 2027 adjusted earnings of 36 cents per share, beating the Zacks Consensus Estimate by 16.13 percent. Revenues of 1.39 billion dollars declined 2.6 percent year over year but topped the consensus estimate of 1.36 billion dollars by 2.3 percent, as better-than-expected NBA 2K and Grand Theft Auto performance helped Net Bookings exceed management's guidance. NBA 2K26 sold in more than 12 million units, up 9 percent from NBA 2K25, while Grand Theft Auto V has sold in over 230 million units worldwide and recurrent consumer spending for the series grew 3 percent. Management said Grand Theft Auto VI had an exceptional start to preorders ahead of its November 19 release. For the fiscal second quarter, the company expects Net Bookings of 1.62 to 1.67 billion dollars and a GAAP loss of 84 to 75 cents per share, while reiterating full-year Net Bookings guidance of 8.0 to 8.2 billion dollars, representing roughly 20 percent growth at the midpoint.

Take-Two Interactive Software surged 6% after reporting first-quarter 2026 earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.31 per share. Fluor Corporation shares surged 16.9% after reporting second-quarter 2026 earnings of $0.91 per share, surpassing the Zacks Consensus Estimate of $0.73 per share. The Wendy's Company rose 4.1% after reporting second-quarter 2026 earnings of $0.18 per share, exceeding the Zacks Consensus Estimate of $0.16 per share. Under Armour fell 4.5% after reporting first-quarter 2026 revenues of $1.1 billion, missing the Zacks Consensus Estimate by 0.93%.

Take-Two Interactive Software shares rose approximately 4.2% after the company reported fiscal first-quarter net bookings of $1.39 billion and reaffirmed its fiscal 2027 net bookings forecast of $8 billion to $8.2 billion. Bookings slipped 3% from a year ago but exceeded management's guidance, while the company posted a net loss of $34.1 million versus $11.9 million a year earlier after a $43.4 million impairment charge tied to a canceled unannounced third-party game. Recurrent consumer spending accounted for 84% of both net bookings and GAAP revenue, with revenue climbing 2% to $1.53 billion. The first quarter contributed about 17% of the midpoint of the full-year bookings target, leaving a significant portion dependent on the planned November 19 release of Grand Theft Auto VI. The stock traded at $241.57, about 11.5% above a GF Value estimate of $216.58.

Take-Two Interactive Software reported fiscal first quarter Net Bookings of $1.39 billion, slightly above its guidance range, and reiterated its full-year Net Bookings outlook of $8.0 to $8.2 billion. GAAP net revenue was $1.53 billion, compared to $1.50 billion a year earlier, while GAAP net loss widened to $34.1 million, or $0.18 per share, from $11.9 million, or $0.07 per share, partly due to a $43.4 million impairment charge for an unannounced title. Recurrent consumer spending accounted for 84% of total Net Bookings, with top contributors including NBA 2K, Grand Theft Auto, and Toon Blast. The company also provided a fiscal second quarter Net Bookings outlook of $1.62 to $1.67 billion and expects to launch Grand Theft Auto VI on November 19, 2026.

Sony is set to be a major beneficiary of the launch of Grand Theft Auto VI, but the highly anticipated game lands as the PlayStation maker grapples with rising memory chip prices. The Japanese entertainment conglomerate, widely seen as the winner of the high-end console wars, has a long history with Take-Two Interactive Software, which will launch its delayed GTA VI on November 19. Analysts expect the game to be console-only, with the vast majority of new users choosing a PlayStation 5, softening the decline of PS5 hardware sales and supporting software growth. However, Sony has been buffeted by AI investment-driven memory price rises and has repeatedly raised console prices, with the PS5 now at a higher-than-ideal price point for the game's launch. The base version of GTA VI on PS5 will be priced at $79.99 and will be digital-only, as Sony plans to stop making physical discs from 2028, a move aimed at shoring up profit amid the industry's shift away from physical media.

Take-Two Interactive Software has proposed an Officer Exculpation Amendment to its Restated Certificate of Incorporation, which would limit the liability of certain officers to the fullest extent permitted under Delaware law. Shareholders are being asked to vote on the proposal after the Board recommended its approval, with the vote scheduled for September 17, 2026. The amendment does not shield officers from breaches of loyalty, bad faith, intentional misconduct, knowing legal violations, or improper personal benefits, keeping core accountability mechanisms in place. The governance change could influence executive recruitment, retention, and the cost of directors and officers insurance, while shifting some litigation risk away from individual officers to the corporate level. Take-Two Interactive Software trades at $247.62, with the stock up 5% over the past week and 10.6% over the past year.

Take-Two Interactive Software is expected to deliver a largely in-line fiscal first quarter performance, with investor attention remaining on management commentary around Grand Theft Auto VI, according to Jefferies analysts. Wall Street forecasts a roughly 4% year-over-year decline in bookings, driven by weakness in the mobile business as several key titles slow. The analysts maintained their Buy rating and $300 price target, above current levels of about $238, and expect the stock to continue trading higher into the game's release. Take-Two will report its Q1 earnings on August 7.

TimesSquare Capital Management’s U.S. Mid Cap Growth Strategy added to its position in Take-Two Interactive Software during the first quarter of 2026, citing confidence in the company’s intellectual property and the planned November launch of Grand Theft Auto 6. The strategy noted that Take-Two shares fell 23% on speculation that Google’s Project Genie would harm game developers, but its own research concluded Genie poses no threat. Take-Two’s fiscal third-quarter results reinforced the firm’s conviction. The stock closed at $249.98 on June 30, 2026, with a market capitalization of $46.41 billion, and posted a one-month return of 15.84%.

Shares of Take-Two Interactive rose 2.9% to $245.40 after the company saw strong pre-order numbers for Grand Theft Auto VI and received a bullish analyst update. Pre-orders for GTA VI, which opened on June 25, 2026, were six times higher in 24 hours at one French retailer than what the Call of Duty franchise typically sees during its entire pre-order period, and an industry analyst projects the game could sell 25 million units on its first day, more than doubling the record set by GTA V. A Bank of America analyst raised the price target on the stock from $320 to $368, citing an improved outlook for GTA Online's monetization. The positive sentiment follows a fiscal year 2026 in which Take-Two's net revenue grew 18% year-over-year to $6.66 billion.

Rockstar Games may have spent roughly $1 billion to $2 billion developing Grand Theft Auto VI, placing it in the same cost range as the $1.5 billion Burj Khalifa, according to industry analyst estimates. The Financial Times, citing video game research group DFC Intelligence, projected last year that GTA VI would generate $3.2 billion in first-year revenue, with about $1 billion of that coming from pre-orders alone. Analysts believe Take-Two Interactive could recoup the entire development budget within days of the November 19 launch, given the franchise's track record—GTA V earned $1 billion in three days in 2013. Unverified reports claim 39 million pre-orders and $3 billion in revenue within 24 hours of pre-orders opening on June 25, though Take-Two and Rockstar have not confirmed these figures. Take-Two shares traded near $239 in late June, with a consensus analyst price target of about $281 and a Street high of $368 from Bank of America.

Take-Two Interactive Software has released full pricing and edition details for Grand Theft Auto VI, confirming a digital-only launch without physical discs and a single-player only experience at release. The base game will be priced at US$80, with a US$100 Ultimate Edition also available. The absence of GTA Online at launch shifts early revenue expectations toward upfront unit sales and Ultimate Edition uptake rather than recurring online spending. The higher base price sets a premium positioning for one of the most expensive games ever produced, while removing physical discs pushes more sales through higher-margin digital channels.

StockStory highlights Take-Two Interactive as a cash-producing stock worth buying, while questioning Carriage Services and AECOM. Take-Two, known for Grand Theft Auto and NBA 2K, is praised for a 26.3% sales growth outlook, 38.1% annual EPS growth over three years, and a free cash flow margin that rose 10.7 percentage points. Carriage Services is flagged for muted 3.6% annual revenue growth over five years and a weak 10.4% free cash flow margin over two years. AECOM faces concerns over a 2% average backlog decline over two years, tepid 4% growth estimates, and a free cash flow margin that dropped 3 percentage points over five years.

Wedbush Securities Managing Director Michael Pachter says Grand Theft Auto VI is on track to become one of the biggest video game launches in history, citing surging pre-order demand. The game, developed by Rockstar over 13 years at a cost of about $1.5 billion, follows the previous title that sold over 100 million units at full price. Pachter notes the $80 base price is the highest ever for a game, but argues Take-Two could have charged $100 and still sold 30 to 40 million units quickly, calling the pricing a generous move toward consumers. He adds that fewer than 25% of buyers finished the prior game, underscoring the value of the roughly 200-hour experience.

Microsoft's gaming revenue fell 7% to $5.34 billion in the third quarter of fiscal 2026, as Xbox hardware revenue plunged 33% and content and services revenue declined 5% year over year. The drop came even as total company revenue rose 18% to $82.9 billion and Microsoft Cloud revenue grew 29% to $54.5 billion, highlighting a divergence between gaming and the rest of the business. CFO Amy Hood had guided for a mid-to-high single-digit decline in total gaming revenue, and the results landed at the softer end of that range. Microsoft is increasingly leaning on cloud-delivered gaming through Game Pass and new first-party titles to tie Xbox to its broader ecosystem, with a recent Game Pass Ultimate price adjustment yet to be reflected in results. Rivals Electronic Arts and Take-Two Interactive posted gains in their latest quarters, with EA net bookings up about 4% and Take-Two net revenues up 6%, though neither faces the hardware headwinds weighing on Xbox.

Take-Two Interactive Software shares rose 2.99% in premarket trading after the company priced Grand Theft Auto VI at $79.99 and reaffirmed a November 19 launch date. A premium Ultimate Edition will cost $99.99 and include exclusive vehicles, weapons, and apparel tied to the story featuring protagonists Jason and Lucia. Pre-orders open June 25, with early buyers receiving the Vintage Vice City Pack and digital purchasers getting a complimentary month of the GTA+ membership service. The sequel follows Grand Theft Auto V, which launched in 2013 and has sold roughly 230 million copies, and analysts expect the new installment to generate billions of dollars in sales within days of release.

Cerebras shares fell 11% in premarket trading after the semiconductor company reported its first earnings since going public in May, posting a first-quarter loss of 22 cents on revenues of $193.4 million and guiding for core gross margin to shrink to between 36% and 38% in the second quarter from 46.5% in the first. FedEx shed about 6.5% even after delivering better-than-expected fiscal fourth-quarter results, which were the last before it spun off its freight business. Micron rose more than 2.5%, rebounding from a 13% drop on Tuesday and ahead of its earnings due after the bell Wednesday, while other memory stocks also recovered from a sell-off triggered by a sharp decline in South Korean tech shares, with Sandisk up more than 2%, Western Digital up more than 1%, and Seagate Technology up about 1%. KB Home added 2.5% after fiscal second-quarter revenue of $1.11 billion beat the $1.10 billion consensus, though earnings of 43 cents per share missed the 45-cent estimate. Worthington Enterprises tumbled 10% after adjusted earnings of 97 cents per share on revenue of $371.5 million fell short of FactSet expectations for $1.06 per share and $386.5 million. Wendy's surged as it became one of the most discussed stocks on Reddit's r/Wallstreetbets, with short interest around 23% of its float according to S3 Partners, potentially setting up a short squeeze. Arm Holdings rose 3% after UBS and TD Cowen raised price targets, citing an improved outlook for its CPU business amid the shift toward agentic AI. Take-Two Interactive Software gained more than 3% after announcing that presales for Grand Theft Auto 6 begin Thursday and after BTIG initiated coverage with a buy rating, saying the game will drive a multi-year improvement in earnings power.

Bank of America raised its price objective on Take-Two Interactive Software to $368 and reiterated a Buy rating, citing stronger long-term monetization potential from the next version of Grand Theft Auto Online. The firm increased its fiscal 2028 bookings forecast for GTA Online by roughly $900 million to $2.2 billion, lifting its assumed annual revenue per monthly active user to $60 from $35. Analysts expect the next installment to monetize at nearly twice the rate of its predecessor, narrowing the gap with leading live-service titles such as Fortnite, and highlighted structural improvements at Rockstar including a larger live-service team and enhanced anti-cheat systems. Bank of America now forecasts fiscal 2028 net bookings of $10.7 billion and earnings per share of $14.23 for Take-Two, while leaving fiscal 2027 estimates unchanged. Take-Two shares traded up 2% at $244 on Tuesday afternoon.

Apple CEO Tim Cook confirmed the company plans to raise prices on its products to offset surging memory chip costs, calling the increases unavoidable but offering no details on timing, scale, or which products will be affected. Travel stocks including airlines and cruises moved higher as oil prices fell significantly, with WTI back to 76, as investors bet consumers will have more money and companies will benefit from lower fuel costs. Take Two Interactive will open pre-orders for Grand Theft Auto 6 on June 25th, one of the most anticipated video games ever made, reportedly in development for more than eight years and one of the most expensive games ever produced.

Take-Two Interactive Software is showing explosive upside potential driven by projected revenue growth, improving earnings per share, and expanding free cash flow margins. Wall Street analysts forecast revenue to rise by 26.2% over the next 12 months, signaling strong top-line performance from newer products and services. The company has reduced its losses and improved its EPS by 38.1% annually over the last three years, though full-year earnings remain negative. Free cash flow margin expanded by 10.7 percentage points to 6.9% over the trailing 12 months, indicating a less capital-intensive business. The stock trades at 24.4 times forward EV/EBITDA, or $229.26 per share, after a 4.7% decline since December 2025.