Take-Two Interactive Software (NASDAQ:TTWO) shares advanced more than 3% in Tuesday’s premarket trading following the video game publisher’s second-quarter earnings announcement, despite a third-quarter bookings forecast that fell below analysts’ expectations.
The company reiterated that Grand Theft Auto VI would be released on November 19, 2026, for PlayStation 5 and Xbox Series X|S, while management reported that pre-orders continued to exceed initial expectations.
Take-Two also provided updated financial projections for fiscal 2027, including annual revenue and net bookings guidance.
Take-Two reported a second-quarter loss of $0.29 per share, compared with analysts’ expectations for earnings of $0.97 per share.
The difference represented an earnings shortfall of $1.26 per share relative to the consensus estimate.
The company reported quarterly bookings of approximately $1.5 billion, compared with the analyst consensus of $1.58 billion.
The reported figures therefore indicated that bookings were below market expectations, although the company’s shares advanced in premarket trading.
Jefferies analysts attributed part of the quarterly performance to lower-than-expected activity associated with the NBA 2K franchise.
In a research note, the analysts stated that second-quarter bookings were $20 million below the lower end of the company’s guidance, primarily because of NBA 2K performance.
For the current quarter, Take-Two projected net bookings between $3.35 billion and $3.50 billion.
The upper end of that range was slightly below the analyst consensus estimate of $3.51 billion.
The company also forecast diluted net income of $1.30 to $1.44 per share for the third quarter.
The projections reflect management’s expectations for the period that includes the scheduled release of Grand Theft Auto VI.
BTIG analysts said the guidance implied a modest reduction in their expectations for third-quarter unit sales.
Their revised assessment indicated approximately 33 million units, compared with a previous estimate of 35 million.
The analysts suggested that stronger sequential sales from the NBA franchise could reduce the level of sales required from Grand Theft Auto VI to meet the company’s overall projections.
Take-Two issued fiscal 2027 earnings guidance of $0.57 to $0.75 per share, alongside a revenue forecast of $7.98 billion to $8.18 billion.
The revenue projection was below the analyst expectation of $8.51 billion.
Separately, management reiterated its full-year net bookings outlook of $8.0 billion to $8.2 billion.
The guidance reflects the company’s expectations for its existing video game portfolio and upcoming releases, including Grand Theft Auto VI.
Actual performance will depend on consumer demand, game sales and the contribution of other titles during the remainder of the fiscal year.
Take-Two confirmed that Grand Theft Auto VI remained scheduled to launch on November 19, 2026, for Sony’s PlayStation 5 and Microsoft’s Xbox Series X|S consoles.
The release date was ten days away at the time of the company’s earnings announcement.
Jefferies analysts indicated that pre-orders for the title were substantially ahead of their initial expectations, describing the development as more significant to their investment assessment than the second-quarter results.
The analysts said the quarterly figures did not materially change their broader view of the company, despite the shortfall in bookings.
The scheduled release is a central component of Take-Two’s fiscal 2027 outlook, with the company expecting the title to contribute to its financial performance during the year.
Chairman and Chief Executive Officer Strauss Zelnick said the company expected Grand Theft Auto VI’s launch to contribute to its annual financial performance.
“The launch of Grand Theft Auto VI is ten days away and, with pre-orders continuing to reach unprecedented levels, we expect to deliver an historic year for our company,” Zelnick said.
He also reiterated the company’s fiscal 2027 net bookings forecast.
“We are reiterating our outlook for Fiscal 2027 Net Bookings of $8 to $8.2 billion,” he stated.
Zelnick said Take-Two intended to continue developing new games, expanding into additional markets, evaluating business opportunities and pursuing acquisitions expected to contribute to earnings.
These initiatives form part of management’s plans to expand the company’s operations and financial performance beyond the upcoming release.
Jefferies analysts characterised the second-quarter results as having limited implications for their broader assessment of Take-Two.
“FQ2 results were not thesis-changing, with bookings $20M below the low-end of guidance driven mostly by NBA2K weakness,” the analysts wrote.
They also highlighted the level of Grand Theft Auto VI pre-orders ahead of the scheduled November launch.
BTIG analysts separately noted that the company’s guidance implied “a slight step down in F3Q unit sales,” with their estimate moving to 33 million from 35 million.
They added that a “healthier q/q NBA ramp would lower what already appears to be a conservative GTA VI bar.”
The comments indicate that analysts are assessing the potential contribution of Grand Theft Auto VI alongside the performance of Take-Two’s existing franchises.
Take-Two’s shares advanced in premarket trading despite second-quarter earnings and bookings falling below analyst expectations and third-quarter bookings guidance coming in slightly below consensus.
The company’s confirmation of the November 19 Grand Theft Auto VI release date and management’s comments regarding pre-orders remained important developments in the earnings announcement.
Investors will be monitoring the game’s initial sales performance, the contribution from existing franchises and Take-Two’s progress towards its fiscal 2027 revenue and net bookings forecasts.
Take-Two Interactive Software stock price
| 8 hours | |
| 8 hours | |
| 10 hours | |
| 11 hours | |
| 12 hours | |
| 12 hours | |
| 12 hours | |
| 12 hours | |
| 14 hours | |
| 18 hours | |
| Nov-09 | |
| Nov-09 | |
| Nov-09 | |
| Nov-09 |
Take-Two Interactive Software Reports Lower Revenue Ahead of 'GTA VI' Launch
TTWO TTWO +8.31%
The Wall Street Journal
|
| Nov-09 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, alerts, and much more.
Learn more about Finviz Elite