Take-Two Interactive Software Inc. (NASDAQ:TTWO) stock rose in Friday’s session as investors assessed the video game publisher’s fiscal first-quarter 2027 results and affirmed its full-year outlook.
The company reported higher revenue but lower net bookings and a wider quarterly loss, with recurrent consumer spending remaining its largest source of revenue ahead of the planned Nov. 19 launch of “Grand Theft Auto VI.”
Take-Two Interactive Revenue Increases, Bookings Decline
Take-Two reported GAAP net revenue of $1.53 billion for the fiscal first quarter ended June 30, 2026, up from $1.50 billion a year earlier.
Net bookings fell 3% year over year to $1.39 billion from $1.42 billion, missing analyst estimates of $1.41 billion.
Recurrent consumer spending declined 1% on a bookings basis but still accounted for 84% of total net bookings.
On a GAAP revenue basis, recurrent consumer spending increased 3% and represented 84% of total revenue. Key contributors included NBA 2K, the Grand Theft Auto series, Toon Blast, Empires & Puzzles, Match Factory!, the Red Dead Redemption series, Words With Friends, Color Block Jam, WWE 2K, Zynga Poker and Merge Dragons.
Take-Two posted a GAAP net loss of $34.1 million, or 18 cents per share, compared with a loss of $11.9 million, or 7 cents per share, a year earlier. The quarter included a $43.4 million impairment charge related to the cancellation of an unannounced third-party title.
GAAP gross profit totaled $882.5 million, resulting in a gross margin of about 57.5%.
Adjusted earnings were 35 cents per share, topping the analyst consensus estimate of 33 cents.
The company used $168.8 million in operating cash during the quarter and ended June with $1.36 billion in cash and cash equivalents.
Company Affirms Fiscal 2027 Outlook
Addressing concerns over GTA VI’s $80 base price, CEO Strauss Zelnick said Take-Two is focused on delivering value, not maximizing pricing. He said Rockstar Games is known for creating experiences that far exceed what consumers pay for, adding that the company believes GTA VI will be an “incredible bargain” given the scale and longevity of the experience.
Zelnick said the quarter reflected the strength of Take-Two’s portfolio and disciplined execution across its labels. He said favorable business trends and anticipation surrounding the Nov. 19 release of “Grand Theft Auto VI” support the company’s fiscal 2027 outlook.
Take-Two affirmed fiscal 2027 GAAP revenue guidance of $7.90 billion to $8.10 billion and net bookings guidance of $8.00 billion to $8.20 billion, below the analyst consensus estimate of $8.51 billion.
The company also reiterated adjusted earnings guidance of $5.75 to $6.00 per share, compared with the analyst consensus estimate of $6.80.
For the fiscal second quarter, Take-Two expects GAAP revenue of $1.42 billion to $1.47 billion and net bookings of $1.62 billion to $1.67 billion, below the analyst consensus estimate of $1.72 billion. It forecast adjusted earnings of 90 cents to $1.00 per share, compared with the consensus estimate of 90 cents.
Take-Two Interactive Price Acttion
TTWO Price Action: Take-Two Interactive shares were up 3.94% at $241.64 at the time of publication on Friday, according to Benzinga Pro data.
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