Video game publisher Take-Two Interactive Software late Thursday crushed Wall Street's targets for its fiscal first quarter and raised its full-year guidance modestly above views. Take-Two stock rose in extended trading.
The New York City-based company earned an adjusted 61 cents a share on net bookings of $1.42 billion in the quarter ended June 30. Analysts polled by FactSet had expected earnings of 29 cents a share on net bookings of $1.31 billion. In the year-earlier period, Take-Two earned an adjusted 5 cents a share on net bookings of $1.22 billion.
For the current quarter, Take-Two expects to earn an adjusted 90 cents a share on net bookings of $1.63 billion. That's based on the midpoint of its outlook. Wall Street had been modeling earnings of $1.17 a share on net bookings of $1.76 billion in the fiscal second quarter ended Sept. 30. In the year-earlier period, Take-Two earned an adjusted 66 cents a share on net bookings of $1.47 billion.
Take-Two also raised its guidance for the full fiscal 2026. It now expects to earn an adjusted $2.76 a share on net bookings of $6.1 billion, based on the midpoint of its range. Analysts had been expecting earnings of $2.74 a share on net bookings of $6.05 billion. In fiscal 2025, Take-Two earned an adjusted $2.52 a share on net bookings of $5.65 billion.
"As we approach the release of the most ambitious pipeline in our company's history, we have exceptional confidence in our multiyear outlook and our ability to deliver meaningful shareholder returns," Chief Executive Strauss Zelnick said in a news release.
Take-Two Stock Pops After Report
The company's lineup of new game releases includes "Mafia: The Old Country," "NBA 2K26" and "Borderlands 4" this fall and "Grand Theft Auto 6" on May 26.
"This is a super robust lineup, maybe the strongest we've ever been able to talk about at this stage of the game," Zelnick told Investor's Business Daily.
Meanwhile, all of the company's game labels "are crushing it," he said.
For instance, this year's version of pro basketball game "NBA 2K25" has sold in 11.5 million units, "much more than last year's title at this time," he said.
The company is seeing strong engagement for "Grand Theft Auto Online" thanks to new content and excitement over the upcoming release of "GTA 6," Zelnick said.
In after-hours trading on the stock market today, Take-Two stock climbed more than 3% to 234.27. During the regular session Thursday, Take-Two stock dipped 0.3% to close at 226.49.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
