Take-Two Interactive delivers earnings beat for Q4 as GTA VI delay weighs on outlook

Take-Two Interactive Software Inc (NASDAQ:TTWO) shares edged higher in early trade on Friday as its fiscal fourth quarter report impressed investors.

Q4 revenue grew 13% year-over-year to $1.58 billion, ahead of estimates of $1.55 billion.

Net bookings grew 17% to $1.58 billion, driven by strong performance from titles like NBA 2K25, Grand Theft Auto Online and V, and Civilization VII.

Adjusted earnings per share (EPS) were $1.09, slightly above the consensus of $1.08 per share.  

“We achieved outstanding results in our 2025 fiscal year, with each of our labels contributing meaningfully to our performance,” Take-Two CEO Strauss Zelnick said in a statement.

“As we bring our exciting lineup to market, including Grand Theft Auto VI in fiscal 2027, we expect to achieve record levels of net bookings that will establish a new baseline for our business and set us on a path of enhanced profitability.”

However, the video game-maker’s full-year outlook disappointed.  

For fiscal 2026, ending March 31, 2026, Take-Two projected revenue in the range of $5.95 billion to $6.05 billion and net bookings between $5.9 billion and $6 billion, below estimates of $6.46 billion.

It guided adjusted EPS of $2.58, in line with the previous year and a net loss between $439 million and $499 million, reflecting ongoing costs and the impact of the delayed Grand Theft Auto VI release.

Analysts unsurprised 

Jefferies analysts were unsurprised by Take-Two's softer guidance for fiscal 2026. 

"We've been here before," they wrote in a note. "Take-Two guides a softer/conservative fiscal year ahead of an expected inflection from GTA VI. We see little changed in the fundamental outlook, and were encouraged by mgmt comments of fiscal year 2027 being the new baseline for bookings and higher profitability." 

Jefferies believes the guidance is beatable, especially with expected contributions from Borderlands 4 and Mafia, which could outperform low guidance assumptions.

Encouraging trends include strong growth in recurrent consumer spending, a rebound in NBA 2K, and continued mobile performance, the analsyts added. 

They maintain a 'Buy' rating and $270 price target on the company. Shares of Take-Two Interactive traded up 0.5% at about $233 shortly after US markets opened on Friday.