Take‑Two Interactive Software, Inc. reported fiscal second‑quarter 2026 results that included a record $1.96 billion in net bookings and $1.773 billion in GAAP net revenue, both up 33 % and 31 % year‑over‑year, respectively. The company posted a GAAP net loss of $133.9 million, or –$0.73 per share, driven by a one‑time goodwill impairment and other non‑recurring charges. On a non‑GAAP basis, adjusted earnings per share were $1.46, a beat of $0.55 over the consensus estimate of $0.91.
The revenue beat was largely powered by the mobile segment, which grew 20 % year‑over‑year and accounted for 42 % of net bookings, while the console and PC segments contributed 46 % and 12 % respectively. Recurring consumer spending—primarily from live‑service titles such as NBA 2K and Grand Theft Auto Online—rose 20 % and represented 73 % of total bookings, underscoring the strength of Take‑Two’s high‑margin live‑service model. These drivers offset a modest decline in legacy console sales, allowing the company to exceed revenue expectations by roughly $30 million.
The GAAP loss reflects a combination of a $133 million goodwill impairment and rising development costs that have eroded operating margins. Management noted that the company is investing heavily in new IP and platform technology, which has increased operating expenses by 13 % year‑over‑year. The loss also highlights the impact of one‑time charges and the need for continued cost discipline as the company scales its live‑service operations.
Management raised its fiscal‑2026 net‑bookings outlook to $6.40 billion–$6.50 billion, up from the prior $6.05 billion–$6.15 billion range, and increased revenue guidance in line with the stronger mobile and core franchise performance. The guidance signals confidence that the company’s diversified portfolio will sustain growth, even as it navigates the delayed launch of its flagship title. The raised outlook also reflects the company’s belief that the mobile segment will continue to expand at a faster pace than console and PC.
The company confirmed that Rockstar Games will release Grand Theft Auto VI on November 19, 2026, a delay from the previously expected May 2026 date. The postponement is intended to allow additional polish and to align the launch with the holiday season, but it also creates a near‑term revenue gap that investors are watching closely. The delay, combined with the GAAP loss, contributed to a muted market reaction focused on profitability concerns, despite the revenue beat and guidance lift.
Chairman and CEO Strauss Zelnick emphasized that “the company achieved outstanding second‑quarter results by releasing new hit titles, driving innovation in live services, and maintaining a commitment to quality.” He added that the raised net‑bookings forecast reflects “robust demand across mobile and NBA 2K, and a strong pipeline that will support record bookings in fiscal 2027.” These comments reinforce the company’s confidence in its growth strategy while acknowledging the need to manage costs and navigate the timing of its flagship releases.
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