Take-Two misses EPS but raises guidance on GTA VI momentum
Video game publisher raises FY26 net bookings outlook to $6.65-6.70B as investors look to 2026 blockbuster launch
Take-Two Interactive shares declined 4.3% in Tuesday trading after the video game publisher reported third-quarter earnings that missed analyst expectations on the bottom line while exceeding revenue targets and raising full-year guidance.
The New York-based company, whose flagship studios include Rockstar Games and 2K, reported quarterly revenue of $1.699 billion, surpassing the consensus estimate of $1.579 billion by 7.6%. However, the company posted an earnings per share loss of $0.50, wider than the expected loss of $0.39. The Q3 2026 earnings release showed net bookings grew 28% year-over-year to $1.76 billion, a metric that closely tracks consumer spending on the company's games.
Despite the earnings miss, Take-Two lifted its fiscal year 2026 net bookings guidance to a range of $6.65 to $6.70 billion, signaling continued confidence in its portfolio's performance and the highly anticipated Grand Theft Auto VI launch scheduled for November 19, 2026. Chief Executive Officer Strauss Zelnick cited ongoing momentum across the company's franchises and the transformative potential of the next installment in the blockbuster GTA series.
"We're executing well against our strategic priorities and building toward what we expect will be a record fiscal year 2027, driven by GTA VI," Zelnick said in a prepared statement. "Our diversified portfolio of franchises continues to demonstrate resilience and growth."
The stock's decline, accompanied by elevated trading volume, reflects investor caution over the widening losses and the extended timeline for GTA VI's release. Take-Two shares, which have fallen from a 52-week high of $264.79, currently trade at $212.17, giving the company a market capitalization of approximately $40.7 billion. The stock has shed roughly 20% from its November peak.
Analysts maintain a broadly positive outlook on Take-Two, with 27 of 29 analysts covering the stock rating it a buy or strong buy. The consensus target price stands at $278.23, representing significant upside from current levels, according to market data. The company's forward price-to-earnings ratio of 27.47 suggests investors are pricing in substantial growth from the GTA VI launch and other franchise expansions.
Take-Two's revenue over the trailing twelve months reached $6.22 billion, with quarterly revenue growth accelerating 31.1% year-over-year. The company's flagship NBA 2K series continues to perform strongly, while its mobile gaming segment and newer intellectual properties contribute to expanding margins and recurring revenue streams.
The raised guidance comes as the video game industry navigates a complex landscape of changing consumer spending patterns, increased development costs, and intensifying competition. Take-Two's ability to deliver consistent revenue growth despite industry headwinds underscores the strength of its franchise portfolio and its successful transition toward live-service gaming models that generate ongoing player engagement and monetization.
Looking ahead, investors will focus on Take-Two's execution through fiscal 2026 as it positions for the GTA VI launch. The company has indicated that fiscal 2027 projections are expected to establish new records across most financial metrics, driven by what analysts anticipate could be the largest entertainment launch in history. The game's development has been underway for years at Rockstar Games, with the studio known for its commitment to quality and lengthy development cycles.
Until the GTA VI release, Take-Two will rely on its established franchises and planned content updates to maintain momentum. The company's recent acquisitions and investments in mobile gaming and emerging platforms position it to diversify beyond console and PC gaming, potentially creating additional revenue streams ahead of the blockbuster launch.