Take-Two Interactive Software Reports Strong Earnings

By Zaheer Kachwala

Reuters – Take-Two Interactive Software (ETR:SOWGn) has exceeded Wall Street expectations for its second-quarter bookings and profits, thanks to the impressive performance of its popular franchises, "Grand Theft Auto" and "Borderlands." This has led to an increase of over 5% in its shares during extended trading.

Key Financial Highlights

• Second Quarter Bookings: $1.47 billion (beating estimates of $1.43 billion, according to LSEG data).

The video game publisher reports robust in-game purchases across its mobile and console titles as anticipation builds for the much-awaited "Grand Theft Auto VI," scheduled to be released next year. Analysts predict that "GTA VI" will generate billions in yearly sales soon after launch.

The company’s fiscal 2026 slate will also feature titles such as "Borderlands 4" and "Mafia: The Old Country," which are expected to contribute substantially to future bookings alongside "GTA VI." According to Wedbush Securities analyst Michael Pachter, these titles should collectively grow over Civilization this year by about $400 million, and the "GTA" series is forecasted to add around $2 billion.

Take-Two (NASDAQ:TTWO) has also announced the sale of its Private Division label to an undisclosed buyer, allowing the company to concentrate on expanding its core and mobile business for long-term growth. The mobile division reported strong spending, with a growth of over 9% in the most recent quarter.

Joost Van Dreunen, a lecturer at NYU's Stern School of Business, noted that Zynga (NASDAQ:ZNGA) is aggressively pursuing revenue strategies like ads to counterbalance user acquisition costs.

Forecasts: Take-Two has predicted bookings between $1.35 billion and $1.40 billion, falling slightly below expectations of $1.44 billion. The company remains optimistic about achieving net bookings growth in fiscal years 2026 and 2027, with most growth anticipated to stem from "GTA VI."

On an adjusted basis, the company reported earnings of 66 cents per share, surpassing estimates of 41 cents per share.