Take-Two Set to Report Q1 Earnings: What's in Store for the Stock?

Take-Two Interactive Software TTWO is scheduled to release first-quarter fiscal 2026 results on Aug. 7.

For the first quarter of fiscal 2026, Take-Two expects GAAP net revenues between $1.35 billion and $1.40 billion. It anticipates a GAAP net loss per share between 78 cents and 65 cents.

The Zacks Consensus Estimate for TTWO’s fiscal first-quarter revenues is pegged at $1.28 billion, indicating growth of 5.42% on a year-over-year basis.

The consensus mark for earnings is pegged at 26 cents per share, which has been unchanged over the past 30 days, indicating an improvement from the year-ago quarter's earnings of 5 cents.

TTWO beat the Zacks Consensus Estimate for earnings in the trailing four quarters, with an average surprise of 121.1%.

Take-Two Interactive Software, Inc. Price and EPS Surprise

 

Take-Two Interactive Software, Inc. price-eps-surprise | Take-Two Interactive Software, Inc. Quote

Let us see how things have shaped up for the upcoming announcement.

Key Factors to Consider for TTWO

Take-Two’s gaming portfolio and recurrent consumer spending model are expected to have benefited from sustained franchise engagement in the to-be-reported quarter. Continued momentum across core console franchises and live service titles is likely to have supported net bookings, while Zynga’s newer mobile offerings are expected to have contributed to diversification across platforms.

NBA 2K is expected to have maintained engagement in the first quarter following its strong fiscal 2025 performance, with monetization from virtual currency and MyTEAM driving steady contribution. Recurrent consumer spending is likely to have been a key growth driver across both console and mobile channels. Zynga’s mobile portfolio is expected to have delivered a mixed performance. Scaling titles such as Match Factory and Color Block Jam are likely to have added to bookings, helping offset moderation in more mature games like Words With Friends.

Grand Theft Auto Online bookings are expected to have declined modestly year over year, reflecting platform maturity and late-cycle usage trends. However, the franchise likely continued to support engagement through GTA+ and regular content updates.

Seasonal softness during the spring quarter and elevated mobile acquisition costs are anticipated to have limited margin improvement. The gross margin expansion is expected to have been constrained, while operating expenses are projected to rise 3% year over year. Ongoing development costs and pre-launch marketing expenses are likely to have weighed on the fiscal first-quarter profitability.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the exact case here.

TTWO has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering, as our model indicates that they possess the right combination of factors to exceed earnings expectations in their upcoming releases:

AvePoint AVPT currently has an Earnings ESP of +5.88% and a Zacks Rank #3. AvePoint shares have gained 11.3% year to date. AvePoint is set to report second-quarter 2025 results on Aug. 7.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Lumentum LITE has an Earnings ESP of +5.12% and flaunts a Zacks Rank #1 at present. Lumentum shares have risen 32.3% year to date. Lumentum is set to report fourth-quarter fiscal 2025 results on Aug. 12.

Globant GLOB currently has an Earnings ESP of +0.11% and a Zacks Rank #2. Globant shares have plummeted 61.8% year to date. Globant is set to report second-quarter 2025 results on Aug. 14.

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This article originally published on Zacks Investment Research (zacks.com).

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