Take-Two Interactive (TTWO.US) published a very strong report for the first quarter of fiscal year 2026, surprising analysts and investors positively. The company significantly raised its annual net bookings revenue forecast to $6.05–6.15 billion (above Wall Street expectations), pointing to exceptional momentum in both the mobile segment (Zynga) and the top NBA 2K and Grand Theft Auto series. Before the opening of today's session, TTWO's share price is up more than 6%, signaling strong market confidence in the company's prospects and its broad pipeline. Management emphasizes that Take-Two is entering the most ambitious production period in its history. In the coming months, NBA 2K26 and Borderlands 4 will hit the market, Mafia: The Old Country premiered yesterday, and the highly anticipated Grand Theft Auto VI is set to officially debut on May 26, 2026.
Quarterly results are driven by very good performance in the mobile, sports, and well-known IP sectors, with player spending on microtransactions and online services remaining the key growth driver. According to analysts at TD Cowen and Benchmark, the release of titles such as Borderlands 4, NBA 2K26, and further updates to GTA Online will be crucial to maintaining the positive trend in the coming quarters. However, some comments point to the management's conservative attitude towards the mobile segment in the coming months. If expectations for Grand Theft Auto VI and subsequent hits materialize, Take-Two has a chance to continue its long-term boom, although market hopes may lead to greater volatility in the periods between key releases.
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Create account Try a demo Download mobile app Download mobile appQ1 2026 financial results:
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Net bookings: $1.42 billion, +17% y/y (forecast: $1.32 billion)
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USA: $836.6 million, +15% y/y; International: $586.5 million, +20% y/y
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Digital/online: $1.41 billion, +18% y/y; Brick-and-mortar retail sales: $18 million, -42% y/y
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Console: $474.4 million, +17% y/y; Mobile: $792.8 million, +12% y/y; PC: $155.9 million, +51% y/y
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Operating profit: $21.6 million (compared to a loss of $184.9 million a year ago)
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Net loss: $11.9 million (a year ago: $262 million), EPS: -$0.07
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Revenue: $1.50 billion, +12% year-on-year
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Adjusted EPS: $0.61 (forecast: $0.29)
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Adjusted EBITDA: $198.2 million (forecast: $124.8 million)
The market reaction shows that confidence in the studio's long-term growth remains high, although expectations for flagship titles such as GTA VI have raised the bar — the company's future valuation on Wall Street will depend on the success of these titles.
The euphoric reaction to the company's results and its rich product pipeline are pushing the company's share price today before the session to recent historic highs. Source: xStation
