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1. Company Snapshot

1.a. Company Description

Take-Two Interactive Software, Inc.develops, publishes, and markets interactive entertainment solutions for consumers worldwide.The company offers its products under the Rockstar Games, 2K, Private Division, and T2 Mobile Games names.


It develops and publishes action/adventure products under the Grand Theft Auto, Max Payne, Midnight Club, and Red Dead Redemption names; and offers episodes and content, as well as develops brands in other genres, including the LA Noire, Bully, and Manhunt franchises.The company also publishes various entertainment properties across various platforms and a range of genres, such as shooter, action, role-playing, strategy, sports, and family/casual entertainment under the BioShock, Mafia, Sid Meier's Civilization, XCOM series, and Borderlands.In addition, it publishes sports simulation titles comprising NBA 2K series, a basketball video game; the WWE 2K professional wrestling series; and PGA TOUR 2K.


Further, the company offers Kerbal Space Program, OlliOlli World, and The Outer Worlds and Ancestors: the Humankind Odyssey under Private Division; and free-to-play mobile games, such as Dragon City, Monster Legends, Two Dots, and Top Eleven.Its products are designed for console gaming systems, including PlayStation 4 and PlayStation 5; Xbox One; the Nintendo's Switch; personal computers; and mobile comprising smartphones and tablets.The company provides its products through physical retail, digital download, online platforms, and cloud streaming services.


Take-Two Interactive Software, Inc.was incorporated in 1993 and is based in New York, New York.

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1.b. Last Insights on TTWO

Take-Two Interactive's recent performance was driven by strong Q2 earnings, with revenue and EPS beating estimates. The company's release of new hit titles contributed to its success. Wedbush analysts expect in-line Q2 results and have a price target of $290. The company's Q2 2026 earnings call highlighted its achievements, with CEO Strauss Zelnick citing "outstanding second quarter results." According to Marketbeat, 19 analysts have assigned a buy rating to the stock. The company's solid financials and positive analyst sentiment are notable.

1.c. Company Highlights

2. Take-Two Interactive Software Beats Expectations with Record-Breaking Q2 Results

Take-Two Interactive Software delivered a strong financial performance in its second quarter of fiscal year 2026, with net bookings reaching $1.96 billion, exceeding expectations. The company's earnings per share (EPS) came in at $1.46, significantly higher than the estimated $0.939. The success was driven by the strong performance of NBA 2K26, which set multiple records and saw unprecedented in-game spending. The mobile business also outperformed expectations, driven by innovation in live services.

Publication Date: Nov -08

📋 Highlights
  • Record Q2 Net Bookings:: Achieved $1.96 billion, surpassing expectations, driven by NBA 2K26’s record-breaking performance and mobile business growth.
  • Full-Year Outlook Raised:: Fiscal 2026 net bookings projected to reach $6.4–6.5 billion, reflecting 14% growth from fiscal 2025 and optimism in sustained momentum.
  • Recurrent Consumer Spending Growth:: Rose 20% year-over-year, fueled by NBA 2K26, mobile titles, and enhanced in-game monetization strategies.
  • Grand Theft Auto VI Delay:: Pushed to November 19, 2026, to prioritize quality, with no impact on GTA Online content or marketing cadence.
  • Mobile Business Expansion:: Generated 46% of total label net bookings (Zynga), with mobile ad revenue growth exceeding 20% and improved margins from direct-to-consumer initiatives.

Revenue Growth and Outlook

The company raised its net bookings outlook for fiscal 2026 to $6.4 billion to $6.5 billion, citing strong second-quarter results and optimism for the rest of the year. This represents a significant growth trajectory, with analysts estimating next year's revenue growth at 14.0%. Lainie Goldstein, CFO, noted that net bookings were significantly above guidance, driven by better-than-expected performance from NBA 2K, Mafia: The Old Country, and several mobile titles.

Segment Performance

The company's mobile business continues to show strong growth, with titles such as Toon Blast, Match Factory!, and Color Block Jam seeing significant growth. The 2K label also performed well, with the launch of several successful titles, including NBA 2K26, Borderlands 4, and Mafia: The Old Country. Rockstar Games announced that Grand Theft Auto VI will be released on November 19, 2026, giving the team more time to polish the game.

Valuation and Margins

With a P/S Ratio of 6.88 and an EV/EBITDA of -14.26, the company's valuation suggests that investors are pricing in significant growth expectations. The company's recurrent consumer spending rose 20%, outperforming guidance, and is expected to grow approximately 11% for the full year. The company's focus on delivering high-quality games and its direct-to-consumer initiative are expected to drive margin expansion.

Future Prospects

Strauss Zelnick, CEO, expressed confidence in the company's pipeline, including BioShock and GTA VI, and stated that the Rockstar team is pushing hard to seek perfection. The company's strategy is to make the best entertainment and bring it to everyone, with a long-term approach that has led to a 5,000% stock appreciation over 18 years. With a strong leadership team and creative people, the company is well-positioned for future growth.

3. NewsRoom

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Stock Market Live December 1: S&P 500 (VOO) Sinks Amidst Crypto Selloff

Dec -01

Source: 247wallst.com

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Here Are Monday’s Top Wall Street Analyst Research Calls: Archer Aviation, Beta Technologies, Carvana, Chevron, MPLX, Toast, Zscaler and More

Dec -01

Source: 247wallst.com

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5 Stocks With Strong Sales Growth to Bet on Amid Volatile Markets

Nov -25

Source: zacks.com

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AXQ Capital LP Acquires Shares of 1,236 Take-Two Interactive Software, Inc. $TTWO

Nov -25

Source: defenseworld.net

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Cetera Investment Advisers Increases Stock Holdings in Take-Two Interactive Software, Inc. $TTWO

Nov -24

Source: defenseworld.net

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Wall Street Sees a Winner in Take-Two Stock. Should You?

Nov -21

Source: marketbeat.com

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Looking for Earnings Beat? Buy These 5 Top-Ranked Stocks

Nov -19

Source: zacks.com

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Take-Two CEO says consoles aren't going away, but gaming is moving toward PCs

Nov -17

Source: cnbc.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.00%)

6. Segments

Publishing

Expected Growth: 11.0%

The 11.0% growth in Take-Two Interactive Software, Inc.'s publishing segment is driven by strong sales of Grand Theft Auto and Red Dead Redemption titles, increased digital sales, and a growing player base in the gaming industry, fueled by innovative game development and strategic marketing efforts.

7. Detailed Products

Grand Theft Auto

An open-world action-adventure game series that allows players to explore and interact with virtual worlds, completing missions and engaging in various activities.

Red Dead Redemption

An open-world western-themed game series that allows players to explore the American West, complete quests, and engage in activities such as hunting and gunfights.

NBA 2K

A basketball simulation game series that allows players to manage and play as their favorite basketball teams, complete with realistic graphics and gameplay.

Borderlands

A first-person shooter game series with RPG elements that allows players to explore post-apocalyptic worlds, complete quests, and engage in cooperative play.

L.A. Noire

An open-world detective game that allows players to investigate crimes, interview witnesses, and solve puzzles in 1940s Los Angeles.

Max Payne

A third-person shooter game series that allows players to control a detective as he navigates a gritty, crime-ridden world, completing quests and engaging in action sequences.

Manhunt

A stealth-based game that allows players to control a prisoner forced to participate in a reality TV show, completing quests and avoiding detection.

Take-Two's Private Division

A publishing label focused on supporting and developing games from independent studios, including titles such as Kerbal Space Program and OlliOlli.

8. Take-Two Interactive Software, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Take-Two Interactive Software, Inc. operates in the video game industry, which has a moderate threat of substitutes. While there are alternative forms of entertainment, such as movies and sports, the company's flagship franchises like Grand Theft Auto and Red Dead Redemption have a loyal customer base, reducing the likelihood of customers switching to substitutes.

Bargaining Power Of Customers

The bargaining power of customers in the video game industry is relatively low. Take-Two's customers are primarily gamers who are loyal to specific franchises and are willing to pay a premium for new releases. The company also has a strong brand reputation and a wide distribution network, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers in the video game industry is relatively low. Take-Two has a diverse range of suppliers, including game developers, publishers, and distributors. The company also has a strong financial position, which allows it to negotiate favorable terms with its suppliers.

Threat Of New Entrants

The threat of new entrants in the video game industry is relatively low. The industry has high barriers to entry, including significant investment requirements, complex game development processes, and established brand relationships. Take-Two's strong market position and brand recognition further reduce the threat of new entrants.

Intensity Of Rivalry

The intensity of rivalry in the video game industry is high. Take-Two competes with established players like Activision Blizzard, Electronic Arts, and Ubisoft, as well as new entrants and smaller developers. The industry is highly competitive, with companies competing on factors like game quality, innovation, and marketing. Take-Two's strong market position and flagship franchises help it compete effectively, but the rivalry remains intense.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.41%
Debt Cost 4.30%
Equity Weight 61.59%
Equity Cost 9.59%
WACC 7.56%
Leverage 62.35%

11. Quality Control: Take-Two Interactive Software, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Amphenol

A-Score: 5.5/10

Value: 0.7

Growth: 7.4

Quality: 7.2

Yield: 1.0

Momentum: 9.5

Volatility: 7.3

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Electronic Arts

A-Score: 5.1/10

Value: 0.9

Growth: 5.2

Quality: 7.8

Yield: 0.0

Momentum: 9.0

Volatility: 7.7

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A-Score: 5.1/10

Value: 0.5

Growth: 7.3

Quality: 8.1

Yield: 0.0

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Volatility: 8.0

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A-Score: 4.7/10

Value: 3.0

Growth: 7.7

Quality: 9.0

Yield: 0.0

Momentum: 1.5

Volatility: 7.3

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Take-Two Interactive

A-Score: 4.6/10

Value: 6.2

Growth: 1.7

Quality: 2.4

Yield: 0.0

Momentum: 9.0

Volatility: 8.3

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A-Score: 4.3/10

Value: 1.2

Growth: 4.0

Quality: 7.3

Yield: 0.0

Momentum: 6.0

Volatility: 7.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

150.7$

Current Price

247.88$

Potential

-39.20%

Expected Cash-Flows