Take-Two Interactive Software (TTWO) recently released its fiscal second-quarter earnings, showcasing a strong financial performance despite a delay in the much-anticipated “Grand Theft Auto 6.” The New York-based video game publisher reported impressive earnings, yet the delay overshadowed this success.
Strong Earnings Amidst GTA 6 Delay
In the quarter ending on September 30, Take-Two posted adjusted earnings of $1.46 per share, significantly exceeding the analyst expectations of $0.94. Net bookings reached $1.96 billion, far above the projected $1.73 billion by analysts from FactSet.
Year-over-year, Take-Two’s adjusted earnings skyrocketed by 121%, with net bookings increasing by 33%. The company attributed its strong performance to the popularity of its basketball game, “NBA 2K6,” and successful mobile titles such as “Toon Blast” and “Match Factory.”
GTA 6 Release Delayed
Despite these positive results, Take-Two announced a six-month delay for “Grand Theft Auto 6,” shifting its release from May 26 to November 19. The company stated that Rockstar Games, the studio behind the game, required more time to ensure the final product meets the high standards expected by players.
Future Projections
Looking ahead to the current quarter, Take-Two anticipates adjusted earnings of $0.80 per share, with net bookings projected at $1.58 billion. This estimate is based on the midpoint of their guidance, which is higher than the expected earnings of $0.76 per share with bookings of $1.49 billion from Wall Street analysts.
For the fiscal year ending March 31, 2026, Take-Two has increased its net bookings forecast to between $6.4 billion and $6.5 billion, surpassing analysts’ expectations of $6.18 billion. The midpoint of this guidance represents a 14% growth compared to fiscal 2025. Furthermore, the company estimates adjusted earnings of $3.17 per share for the entire year, exceeding the consensus of $2.90.
Market Response
Following the earnings announcement, TTWO stock experienced volatility. In after-hours trading, shares plummeted by 9%, reaching $229.69. During the regular trading session, the stock fell by 0.9%, closing at $252.40. Despite these fluctuations, TTWO remains on the IBD Tech Leaders list, maintaining a focus on competitive tech and gaming sectors.
- Adjusted Earnings: $1.46 per share
- Net Bookings: $1.96 billion
- GTA 6 Release Date: November 19
- Fiscal Year Net Bookings Target: $6.4 – $6.5 billion
- Projected Adjusted Earnings for Full Year: $3.17 per share
