Start here if you're new
what it is
Take-Two makes video games you already know, sells them on console, PC, and mobile, and waits for hits to do heavy lifting.
how it gets paid
Last year Take-Two Interactive made $5.6B in revenue (full-year pace in the feed).
why it's growing
Full-year GAAP net revenue is ~$5.5–5.6B-scale (fiscal year basis). In Q2 FY26 (quarter ended Sep 30, 2025), GAAP net revenue was ~$1.77B— net bookings grew ~33% YoY to ~$1.96B, which is not the same thing as clean GAAP profitability yet.
what just happened
Q2 FY26 GAAP net revenue was ~$1.77B with a GAAP net loss of ~$0.73 per diluted share— better than the year-ago loss, still not profitable on a GAAP basis.
At a glance
A+ balance sheet — rock-solid finances — built to survive anything
15/100 earnings predictability — expect surprises
68.2x trailing p/e — you're paying up for this one
9.5% return on capital — nothing to write home about
xvary composite: 52/100 — below average
What they do
Take-Two makes video games you already know, sells them on console, PC, and mobile, and waits for hits to do heavy lifting.
Rockstar and 2K give you franchises people wait years for and still show up for on day one. Foreign sales were about 40% of fiscal 2024 revenue, which tells you these brands travel. That matters because a company with $5.6B in annual revenue does not need every title to work, but one giant release can still move the whole income statement.
How they make money
$5.6B
annual revenue · their business grew +5.3% last year
total revenue
$5.6B
+5.3%
The products that matter
premium open-world franchises
Grand Theft Auto & Red Dead Redemption
feeds the $2.0B full-game line
the source data does not break out franchise revenue, which is annoying, but these series anchor the full-game sale engine and create the installed audience that later feeds recurrent spending.
pipeline driver
annual sports releases
NBA 2K & WWE 2K
supports ~73% of Q2 FY26 net bookings (recurrent)
annual sports titles matter because they refresh the player base every year and keep in-game spending active. in Q2 FY26, recurrent consumer spending was ~73% of net bookings per the earnings release.
repeat engagement
in-game spending and subscriptions
Recurring Player Spending
~72% of Q2 FY26 GAAP net revenue (recurrent)
recurrent consumer spending is the monetization engine— in Q2 FY26 it was ~72% of GAAP net revenue and ~73% of net bookings, per the release.
monetization engine
Key numbers
$6.5B
FY26 net bookings guide (range)
After Q2 FY26, Take-Two guided FY26 net bookings to about $6.4–$6.5B— still a step up vs. ~$5.65B FY25 net bookings, but not a $9B headline.
68.2x
trailing p/e
Price-to-earnings → what you pay for each dollar of profit → so what: the stock already assumes a big comeback even after trailing EPS was -$2.00.
-77.9%
operating margin
Operating margin is negative in this window— the feed mangled the sign if you ever see a positive 77.9%. The core ops line is deep red, not a healthy positive margin.
9.5%
return on capital
Return on capital → profit earned on the money put into the business → so what: this is fine, not elite, for a stock priced like a superstar.
Financial health
A+
strength
- balance sheet grade A+ — near the highest rating possible
- risk rank 3 — safer than 50% of stocks
- price stability 60 / 100
- long-term debt $2.9B (6% of capital)
- net profit margin screen shows ~10.6% in one trailing window— conflicts with negative operating margin and GAAP losses elsewhere; use the same period in the 10-Q/10-K
- return on equity feed mixes periods— do not treat ~12% ROE as consistent with trailing GAAP losses until reconciled
A+ — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in TTWO 3 years ago → it's now worth $25,230.
The index would have given you $13,920.
source: institutional data · total return
What just happened
missed estimates
Q2 FY26 GAAP net revenue was ~$1.77B with a GAAP net loss of ~$0.73 per diluted share.
Net bookings grew ~33% YoY to ~$1.96B. GAAP gross profit was ~$981M on ~$1,774M net revenue (~55% gross margin), and the quarter was still a GAAP loss— the model is bookings-led while GAAP catches up.
$1.77B
GAAP net revenue (Q2 FY26)
-$0.73
GAAP EPS (diluted)
$1.96B
net bookings
the number that mattered
Net bookings at ~$1.96B show demand, but GAAP EPS was still negative— the disconnect between bookings strength and GAAP profit is the whole debate.
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shares of take-two interactive software have traded higher in price in recent months.
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this is part of a longer uptrend since early 2023.
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most recently, the company reported favorable comparisons for the september period.
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revenues increased roughly 31% on a year-to-year basis.
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total net bookings grew 33% to $1.96 billion.
source: company earnings report, 2026
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What could go wrong
the #1 risk is fiscal 2027 pipeline execution behind promised record net bookings.
med
fiscal 2027 has to justify the story
management is talking about "record levels of Net Bookings" and a "new baseline" for fiscal 2027. the stock is already leaning on that promise.
if fiscal 2027 lands close to the current FY2026 outlook of $6.05–$6.15B instead of clearly above it, the growth narrative gets thinner fast.
med
gaap profitability is still not clean
GAAP EPS can still be negative (e.g. ~-$0.50 in a recent quarter) even when operating margin looks positive (~13.5%) in that same print— amortization, stock comp, and other below-the-line items matter.
that matters because a strong balance sheet can fund development, but it does not make a premium multiple cheaper if reported earnings stay messy.
med
recurrent spending concentration cuts both ways
~73% recurrent bookings is great when engagement is strong. it also means the model depends on players sticking around and continuing to spend inside live-service titles.
if that mix slips, the business starts looking more like a hit-driven publisher again and less like a steady monetization machine.
the valuation is asking you to look past a recent GAAP loss and toward more than $6B in annual bookings with an even stronger fiscal 2027. if that step-up slips, the premium story slips with it.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
fiscal 2027 booking setup
management has framed fiscal 2027 as a new baseline. that is the promise the market is underwriting right now.
metric
~73% recurrent booking share (Q2 FY26)
if that mix holds, the post-launch monetization engine is intact. if it fades, the business becomes more dependent on blockbuster release timing.
risk
gaap earnings cleanup
a recent quarterly GAAP loss of $0.50 per share tells you the accounting picture is still volatile even with solid bookings.
trend
recurring spend vs. full-game sales
Recurring Player Spending grew 17% while Full-Game Sales & Other fell 12%. that gap is the business model shift in one line.
Analyst rankings
short-term outlook
bottom 5%
momentum score 5 — the weakest rating. in human-speak, analysts think the next 12 months could lag even if the long-term pipeline still excites people.
risk profile
average
stability score 3 means typical stock risk. not a bunker stock, not a chaos stock.
chart momentum
average
technical score 3 says the chart is not sending a strong signal either way. the market is waiting for harder evidence.
earnings predictability
15 / 100
low predictability means quarter-to-quarter results can move around more than the underlying franchise value suggests.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 526 buyers vs. 402 sellers in 3q2025. total institutional holdings: 0.2B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$206
$354
$256
current price
$280
target midpoint · +10% from current · 3-5yr high: $285 (+10% · 3% ann'l return)
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