Take-Two Interactive (TTWO, Financial) has reaffirmed its projections for significant growth, anticipating sequential increases in net bookings, reaching unprecedented levels in fiscal years 2026 and 2027. This optimism is bolstered by the announcement from its subsidiary, Rockstar Games, regarding the release of Grand Theft Auto VI. Originally slated for Fall 2025, the highly anticipated game is now scheduled to hit the market on May 26, 2026, coinciding with Take-Two's Fiscal Year 2027.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 29 analysts, the average target price for Take-Two Interactive Software Inc (TTWO, Financial) is $226.24 with a high estimate of $270.00 and a low estimate of $137.43. The average target implies an downside of 3.80% from the current price of $235.17. More detailed estimate data can be found on the Take-Two Interactive Software Inc (TTWO) Forecast page.
Based on the consensus recommendation from 30 brokerage firms, Take-Two Interactive Software Inc's (TTWO, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Take-Two Interactive Software Inc (TTWO, Financial) in one year is $211.76, suggesting a downside of 9.95% from the current price of $235.17. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Take-Two Interactive Software Inc (TTWO) Summary page.
TTWO Key Business Developments
Release Date: February 06, 2025
- Net Bookings: $1.37 billion, within guidance range of $1.35 billion to $1.4 billion.
- Recurrent Consumer Spending: Increased 9% year over year, accounting for 79% of net bookings.
- NBA 2K Performance: Grew over 30%, surpassing forecasts.
- Mobile Growth: Increased 6%, below guidance of low double-digit growth.
- GAAP Net Revenue: $1.36 billion, flat compared to last year.
- Cost of Revenue: Declined 13% to $600 million.
- Operating Expenses: Increased 10% to $892 million; management basis increase of 8% year over year.
- Fiscal Year Net Bookings Guidance: Reiterated at $5.55 billion to $5.65 billion, representing 5% growth over fiscal 2024.
- Recurrent Consumer Spending Forecast: Raised to 5% growth, driven by NBA 2K.
- Non-GAAP Adjusted Unrestricted Operating Cash Flow: Expected outflow of $150 million.
- Capital Expenditures: Approximately $140 million, primarily for game technology and office buildouts.
- Fourth Quarter Net Bookings Guidance: Projected to range from $1.48 billion to $1.58 billion.
- Fourth Quarter Operating Expenses: Planned to range from $900 million to $920 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Take-Two Interactive Software Inc (TTWO, Financial) achieved solid third-quarter results with net bookings of $1.37 billion, within their guidance range.
- NBA 2K delivered a phenomenal quarter, with sales exceeding 7 million units and recurrent consumer spending up over 30%.
- The company is optimistic about its upcoming releases, including Grand Theft Auto 6, Borderlands 4, and Sid Meier's Civilization VII, which are expected to drive future growth.
- Zynga's Match Factory is performing well and is on track to become Zynga's second-largest title by the end of the fiscal year.
- Take-Two Interactive Software Inc (TTWO) is forecasting a strong fiscal year 2026 and 2027, with expectations of record levels of net bookings and financial growth.
Negative Points
- Some mobile franchises underperformed, with Empires and Puzzles not meeting expectations.
- The company anticipates challenges in the fourth quarter due to continued mobile trends and a shift of operating expenses.
- Recurrent consumer spending growth in mobile was below expectations, primarily due to underperformance in the hyper-casual mobile portfolio.
- Grand Theft Auto Online experienced a decline, impacting overall performance.
- Operating expenses increased by 10% year over year, partly due to a shift in timing of expenses into the fourth quarter.
