GET DAILY SIGNALSTake-Two Interactive (TTWO): Q2 Results Show Resilience Ahead of GTA VI Launch
Key Takeaways
- Take-Two Interactive reported results for its fiscal second quarter of 2027, the three months ended September 30, 2026, with GAAP net revenue of roughly $1.5 billion, down 16% year over year.
- Net bookings of $1.6 billion came in below the company's guidance range of $1.62 billion to $1.67 billion, weighed down by a 9% decline in recurrent consumer spending.
- A GAAP net loss of $0.29 per share was narrower than the $0.86 loss FactSet had projected, while adjusted earnings of $0.99 per share exceeded the $0.94 consensus estimate.
- Management reiterated full-year fiscal 2027 net bookings guidance of $8.0 billion to $8.2 billion and modestly raised net revenue guidance to $7.98 billion to $8.18 billion.
- The company said pre-orders for Grand Theft Auto VI, which launches November 19, 2026, are reaching "unprecedented levels."
- For additional details, explore Take-Two's Major News, Today's Price Move, Price Targets, and Forecast.
Earnings Context and Why It Matters
Take-Two enters the most consequential stretch of its fiscal year with this report, its final earnings update before Grand Theft Auto VI launches on November 19, 2026. Investors treated the September-quarter results as a read on whether the blockbuster release can deliver the step-change in bookings, revenue, and cash flow the company has projected. The quarter itself was quiet on major launches, so attention centered on recurrent consumer spending from franchises such as NBA 2K and Zynga's mobile portfolio, along with updated full-year guidance. Management's commentary on GTA 6 pre-orders is now setting the tone for how the market prices Take-Two's biggest release in more than a decade. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
Take-Two posted GAAP net revenue of $1,497 million for fiscal Q2 2027, a 16% decline from $1,774 million a year earlier, reflecting the timing of major releases. Net bookings totaled $1,601 million, down 18% year over year and modestly below the company's own guidance range of $1.62 billion to $1.67 billion. Recurrent consumer spending fell 9% from the prior-year period, pressured by NBA 2K, and accounted for 81% of net bookings.
On the bottom line, Take-Two recorded a GAAP net loss of $0.29 per share, which was narrower than the $0.86 per-share loss FactSet had anticipated. Adjusted earnings came in at $0.99 per share, ahead of the $0.94 consensus. Management reiterated its fiscal 2027 net bookings outlook of $8.0 billion to $8.2 billion and slightly raised net revenue guidance to a range of $7.98 billion to $8.18 billion. For the fiscal third quarter, the company guided net revenue of $3.27 billion to $3.42 billion and adjusted earnings per share of $3.80 to $4.00.
Market Reaction and Investor Sentiment
TTWO shares climbed roughly 4% in after-hours trading following the report, as investors looked past a lighter bookings quarter and focused instead on the strength of GTA 6 pre-orders and the company's reiterated full-year outlook. The stock initially closed lower in the regular session before rebounding. Sentiment remains dominated by the approaching GTA VI launch, with the third-quarter bookings guidance of $3.35 billion to $3.50 billion arriving slightly below some Wall Street estimates, yet doing little to dampen enthusiasm. Investors appear willing to tolerate near-term softness in the recurring consumer spending base in exchange for exposure to what management has called a potentially "historic" year. From what I see, this reaction aligns with how the market often prices major upcoming releases.
Forward Outlook and Key Factors to Monitor
The single most important catalyst is the November 19 launch of Grand Theft Auto VI, which management says is generating extraordinary pre-orders. Investors will watch early sales, the mix between standard and higher-priced Ultimate Edition purchases, and add-on content attach rates, all of which feed directly into the company's full-year bookings guidance of $8.0 billion to $8.2 billion.
Beyond the launch, monitor recurrent consumer spending trends. Take-Two expects flat RCS for fiscal 2027, balancing strong growth in the Grand Theft Auto series against an anticipated moderation in Zynga's mature mobile titles and the difficult comparison from last year's Color Block Jam. High-single-digit growth in NBA 2K and continued mobile discipline will matter for the second half.
On the financial side, management projects operating cash flow above $1 billion for the year and a shift to a net cash position by fiscal year-end, alongside roughly $290 million in capital expenditures. Upcoming releases—including PGA Tour 2K27, WWE 2K27, and Zynga's Top Goal—plus management's stated openness to accretive M&A and geographic expansion, round out the factors worth watching in the quarters ahead. I’m watching this closely as the launch approaches.
Exploring Tickeron AI Tools
In my view, tools like the AI Screener have become a regular part of my process for filtering ideas and comparing names like TTWO against peers. The platform lets me quickly scan for technical patterns, fundamentals, and AI-driven signals across thousands of stocks and ETFs. It has helped surface context on volatility and performance metrics that complement traditional earnings analysis. I find it especially useful when evaluating how a stock might behave around major catalysts.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
TTWO's RSI Indicator ascending out of oversold territory
The RSI Indicator for TTWO moved out of oversold territory on November 02, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 31 similar instances when the indicator left oversold territory. In 25 of the 31 cases the stock moved higher. This puts the odds of a move higher at 81%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 04, 2026. You may want to consider a long position or call options on TTWO as a result. In 57 of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 70%.
The Moving Average Convergence Divergence (MACD) for TTWO just turned positive on November 04, 2026. Looking at past instances where TTWO's MACD turned positive, the stock continued to rise in 36 of 47 cases over the following month. The odds of a continued upward trend are 77%.
TTWO moved above its 50-day moving average on November 04, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +2.86% 3-day Advance, the price is estimated to grow further. Considering data from situations where TTWO advanced for three days, in 220 of 327 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.
TTWO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The 50-day moving average for TTWO moved below the 200-day moving average on October 07, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TTWO declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 57%.
The Aroon Indicator for TTWO entered a downward trend on October 20, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of 8 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 33 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 57 (best 1 - 100 worst), indicating steady price growth. TTWO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 69 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TTWO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 95, placing this stock better than average.
The Tickeron Valuation Rating of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (11.134) is normal, around the industry mean (12.346). TTWO's P/E Ratio (-124.202) is considerably lower than the industry average of (-4.296). Projected Growth (PEG Ratio) (2.772) is also within normal values, averaging (2.125). Dividend Yield (0.000) settles around the average of (2.202) among similar stocks. TTWO's P/S Ratio (5.869) is very high in comparison to the industry average of (1.575).
The Tickeron SMR rating for this company is 93 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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a developer of interactive entertainment software
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