TTWO Earnings: Waiting for GTA VI

Here's our initial take on Take-Two Interactive's (NASDAQ: TTWO) financial report.

Key Metrics

EBITDA = earnings before interest, taxes, depreciation, and amortization.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Treading Water in Fiscal 2026

Take-Two Interactive finished out fiscal 2025 on a strong note, with double-digit revenue and net bookings growth. Around three-quarters of net bookings came from recurrent consumer spending. Grand Theft Auto V and Grand Theft Auto Online continued to be major contributors to net bookings in the fourth quarter.

Take-Two took a large hit to earnings due to impairment charges related to previous acquisitions. The company wrote off $3.55 billion related to goodwill and another $176 million worth of acquisition-related intangible assets, driving earnings per share deep into negative territory.

Due to the delay of Grand Theft Auto VI to May 2026, that upcoming blockbuster has been pushed into fiscal 2027. For fiscal 2026, now devoid of a GTA-related boost, the company expects to generate revenue between $5.95 billion and $6.05 billion, along with net bookings between $5.9 billion and $6.0 billion. For comparison, net bookings in fiscal 2025 came in at $5.65 billion. Take-Two also expects to report a sizable net loss between $439 million and $499 million for fiscal 2026.

Immediate Market Reaction

Shares of Take-Two were down about 2.5% in after-hours trading soon after the fourth-quarter report was released. Ever since the company delayed GTA VI, a weak outlook for fiscal 2026 has been expected, and the big earnings miss was due to charges that don't necessarily reflect the company's operating performance.

What to Watch

Fiscal 2027 will almost certainly be Take-Two's biggest year ever, thanks to a new iteration of the Grand Theft Auto franchise. The company does have some significant releases planned for fiscal 2026, including Borderlands 4 and multiple new sports games. However, nothing on the release schedule will come close to the sales GTA VI is expected to generate.

Take-Two will be largely treading water in fiscal 2026 as it works toward releasing the first new GTA game in over a decade.

Helpful Resources

• Full earnings report
• Investor relations page

Should you invest $1,000 in Take-Two Interactive Software right now?

Before you buy stock in Take-Two Interactive Software, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Take-Two Interactive Software wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $620,719!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $829,511!*

Now, it’s worth noting Stock Advisor’s total average return is 959% — a market-crushing outperformance compared to 170% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 12, 2025

Timothy Green has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Take-Two Interactive Software. The Motley Fool has a disclosure policy.