Take-Two Interactive Software (NASDAQ:TTWO) reported a stronger-than-expected finish to fiscal 2026 and issued an initial fiscal 2027 outlook calling for record net bookings, driven by the planned Nov. 19 release of Grand Theft Auto VI.
Chairman and Chief Executive Officer Strauss Zelnick said the company ended fiscal 2026 with “excellent results,” including fourth-quarter net bookings of $1.58 billion, above the high end of its guidance range. Full-year net bookings were $6.7 billion, approximately $750 million above the initial guidance the company provided last May.
Chief Financial Officer Lainie Goldstein said fiscal 2026 net bookings totaled $6.72 billion, exceeding the high end of Take-Two’s guidance range of $6.65 billion to $6.7 billion. GAAP net revenue rose 18% for the year to $6.65 billion, while cost of revenue increased 11% to $2.8 billion. Operating cash flow was $624 million, above the company’s $450 million forecast.
Grand Theft Auto VI Anchors Fiscal 2027 Outlook
Take-Two projected fiscal 2027 net bookings of $8 billion to $8.2 billion, representing roughly 20% growth from fiscal 2026. Goldstein said the increase is primarily tied to the launch of Grand Theft Auto VI, along with execution across the company’s broader portfolio.
Zelnick described fiscal 2027 as a potential “breakout year” for Take-Two and said Rockstar Games will begin marketing Grand Theft Auto VI this summer. He did not provide pricing details or additional release platform information beyond Rockstar’s prior announcement for consoles.
Goldstein said the company expects the largest contributors to fiscal 2027 net bookings to include the Grand Theft Auto series, NBA 2K, Toon Blast, Match Factory, Empires & Puzzles, the Red Dead Redemption series, Words with Friends, Color Block Jam and Zynga Poker. Take-Two expects recurrent consumer spending to be flat year over year and to represent 65% of net bookings.
The company also forecast operating cash flow in excess of $1 billion for fiscal 2027 and said it expects to be in a net cash position by the end of the fiscal year. Capital expenditures are expected to be approximately $200 million, primarily for game technology and office buildouts.
Mobile and Live Services Drive Fiscal 2026 Performance
Mobile was a key contributor to Take-Two’s fiscal 2026 performance. Zelnick said Zynga achieved its highest net bookings since Take-Two acquired the business in 2022. He cited strong results from several titles, including Toon Blast, which grew approximately 25% year over year, and Empires & Puzzles, which grew 5% over last year. Color Block Jam grew 15% and remained the highest-grossing title in Rollic’s history.
Goldstein said recurrent consumer spending increased 7% in the fourth quarter and accounted for 82% of net bookings. For the full year, recurrent consumer spending grew 17% and accounted for 78% of net bookings. She said NBA 2K grew more than 30%, mobile increased 13% and Grand Theft Auto Online increased 6% for the year, all sharply exceeding the company’s initial May guidance.
For fiscal 2027, however, Goldstein said Take-Two expects mobile recurrent consumer spending to decline, reflecting last year’s success of Color Block Jam and an assumption that trends will moderate for several of Zynga’s mature mobile titles. In the question-and-answer session, Zelnick said the mobile outlook does not assume a “massive new release hit,” noting that mobile hit rates are difficult to predict.
Grand Theft Auto and Red Dead Remain Strong Ahead of GTA VI
Zelnick said the Grand Theft Auto series continued to exceed expectations. Fourth-quarter recurrent consumer spending for the franchise grew 5% year over year, supported by engagement in GTA Online and the update “A Safehouse in the Hills.” He said the update included mansion properties, the return of Michael De Santa from Grand Theft Auto V, new missions, vehicles, GTA+ benefits and the Rockstar Mission Creator.
Grand Theft Auto V has sold in nearly 230 million units to date, according to Zelnick. He also said Red Dead Redemption 2 posted its highest annual unit sales since its launch year and has sold in more than 85 million units to date.
Asked about the trajectory of GTA Online after the release of Grand Theft Auto VI, Zelnick said it is difficult to know exactly how the title will perform, but added that it will remain in market and continues to have many loyal players.
Sports Titles Post Gains
Take-Two’s sports portfolio also contributed to the quarter. Zelnick said NBA 2K26 has sold in more than 10 million units to date, up 5% from NBA 2K25. Recurrent consumer spending for the title grew 10%, helped by higher daily active users and more games played per user.
Goldstein said NBA 2K had one of the strongest fourth quarters in franchise history, though trends moderated from the “extreme growth” seen in the second and third quarters. In response to an analyst question, she said Take-Two saw a high concentration of spending from its most engaged players earlier in the year, leaving less upside in the fourth quarter.
Zelnick also highlighted WWE 2K26, launched March 13, saying recurrent consumer spending rose 20% year over year and players had completed more than 85 million matches, up 7% from WWE 2K25. PGA TOUR 2K25 also saw renewed engagement, with consumers playing 60 million rounds during the quarter, a 110% increase from the third quarter.
Pipeline, Expenses and Capital Allocation
President Karl Slatoff said Take-Two’s development pipeline includes 29 titles through fiscal 2029. For fiscal 2027, the company plans to release Grand Theft Auto VI and six additional titles: two mobile titles, three sports titles — NBA 2K27, PGA TOUR 2K27 and WWE 2K27 — and one platform extension.
Goldstein said Take-Two expects GAAP net revenue of $7.9 billion to $8.1 billion in fiscal 2027, with cost of revenue between $3.5 billion and $3.62 billion. Total operating expenses are expected to range from $4.18 billion to $4.2 billion. On a management basis, operating expenses are expected to grow about 8%, largely due to higher marketing expense for Grand Theft Auto VI and new mobile releases, along with higher research and development costs.
In response to an analyst question about expenses, Goldstein said about half of the expected $300 million increase in management-basis operating expenses is tied to selling and marketing across the company’s title pipeline.
Zelnick said Take-Two’s capital priorities remain supporting organic growth, pursuing selective accretive acquisitions and returning capital to shareholders when it makes sense. He said prior buybacks have been opportunistic and that the company continues to evaluate capital returns based on value.
Management also discussed artificial intelligence, with Zelnick saying Take-Two remains optimistic about new technology’s potential to improve efficiency and innovation. He emphasized that asset creation is not the same as hit creation and said the company’s creative teams are expected to use technology in support of “handcrafted” entertainment experiences.
About Take-Two Interactive Software (NASDAQ:TTWO)
Take-Two Interactive Software is an American video game publisher headquartered in New York City. Founded in 1993 by Ryan Brant, the company is publicly traded on the NASDAQ under the ticker TTWO and is led by Chairman and CEO Strauss Zelnick. Take-Two operates through distinct publishing labels that manage development, marketing and distribution of interactive entertainment for a global audience.
Take-Two's publishing portfolio includes Rockstar Games and 2K, as well as the Private Division label, which supports independent and mid-size developers.
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