TLDR
- Take-Two Interactive (TTWO) stock fell over 5% despite reporting Q3 net bookings of $1.76 billion, beating the $1.58 billion estimate.
- Jim Cramer praised the video game publisher’s solid quarter and called the decline a chance to buy before GTA VI launches in November.
- The company increased fiscal 2026 bookings guidance by $225 million to $6.68 billion as recurrent consumer spending jumped 23%.
- Grand Theft Auto Online revenue grew 27% while NBA 2K recurrent spending surged 30%, both topping management forecasts.
- Investor fears about Google’s Project Genie AI platform creating games overshadowed strong earnings and raised guidance.
Take-Two Interactive shares dropped more than 5% after earnings. The video game publisher beat estimates with $1.76 billion in net bookings versus the $1.58 billion consensus.
Take-Two Interactive Software, Inc., TTWO
Jim Cramer called it a buying opportunity. “A great stock,” he said. “I do think that you’re getting a chance to buy it.”
Concerns about Google’s Project Genie caused the selloff. The AI platform can apparently create video games automatically. This spooked investors despite Take-Two’s strong results.
The stock has declined 12.75% over the past week. Shares trade in oversold territory based on technical indicators. Cramer noted the timing was unfortunate as Google’s announcement came right after earnings.
Earnings per share reached $1.23, crushing the $0.83 estimate. Revenue came in at $1.76 billion, beating the $1.59 billion forecast. The company posted 20.34% revenue growth over the last twelve months.
Key Franchises Drive Double-Digit Growth
Recurrent consumer spending increased 23% year-over-year. This measures ongoing player spending on virtual items and content. Growth accelerated from the 20% posted in the prior quarter.
Grand Theft Auto Online delivered 27% revenue growth. Management had previously expected a moderate decline. The surprise strength shows players remain engaged years after launch.
NBA 2K’s recurrent spending jumped 30%. The basketball franchise continues generating strong monetization. Mobile revenue climbed 19% in the third consecutive quarter of double-digit growth.
Total revenue hit $6.56 billion over the trailing twelve months. All major franchises showed strength across the portfolio. The broad-based performance supported the raised guidance.
Raised Outlook Reflects Portfolio Strength
Take-Two increased full-year 2026 bookings guidance to $6.68 billion. The $225 million increase came from better-than-expected performance. The new target implies 17% recurrent consumer spending growth versus 11% previously.
Oppenheimer maintained its Outperform rating with a $265 price target. BofA Securities kept its Buy rating at $295, calling current levels attractive. Goldman Sachs adjusted its target to $270 from $280.
Analysts expect the company to return to profitability this fiscal year. Projected earnings per share stands at $3.30. Multiple Wall Street firms view the weakness as a buying opportunity.
GTA VI Release Confirmed for November
Management reaffirmed the November 19 launch date for Grand Theft Auto VI. Marketing efforts begin this summer for the blockbuster release. Cramer called it “the greatest performing entertainment property in history.”
Electronic Arts is being taken private by Saudi Arabia’s Sovereign Wealth Fund. This makes Take-Two the only independent publicly traded major game publisher. Cramer highlighted this “great scarcity value” in a previous episode.
The mobile segment continues gaining traction after the Zynga acquisition. Three straight quarters of double-digit growth demonstrate improving momentum. The company raised its full-year forecast based on execution across all segments heading into the crucial GTA VI launch window.
