Contents
TLDR
- Take-Two Interactive (TTWO) reported Q3 net bookings of $1.76 billion, beating the $1.58 billion estimate by 11%.
- Recurrent consumer spending grew 23% year-over-year with Grand Theft Auto Online up 27% and NBA 2K up 30%.
- The company raised full-year 2026 guidance by $225 million to $6.68 billion despite stock falling over 5%.
- Jim Cramer called TTWO a “great stock” and said investors are getting a buying opportunity after the decline.
- Concerns about Google’s Project Genie AI platform triggered the selloff despite strong results and GTA VI on track for November.
Take-Two Interactive shares fell more than 5% despite crushing third-quarter expectations. Net bookings hit $1.76 billion, beating the $1.58 billion consensus by 11%.
Take-Two Interactive Software, Inc., TTWO
Jim Cramer called the decline a buying opportunity. “A great stock,” Cramer said on his show. “I do think that you’re getting a chance to buy it.”
The selloff came as investors worried about Google’s Project Genie. The AI platform appears capable of creating video games automatically. This sparked fears about disruption to traditional game publishers.
Strong Revenue Growth Across Key Franchises
Recurrent consumer spending jumped 23% year-over-year. That accelerated from 20% growth in the prior quarter. This metric tracks ongoing player spending on virtual items and content.
Grand Theft Auto Online revenue surged 27%. Management had previously guided for a moderate decline. NBA 2K’s recurrent spending climbed 30% year-over-year.
The mobile segment delivered its third consecutive quarter of double-digit growth. Revenue rose 19% since the Zynga acquisition. Total revenue reached $6.56 billion over the last twelve months, representing 20.34% growth.
Earnings per share came in at $1.23, crushing the $0.83 estimate. The beat shows strong execution across the company’s portfolio of franchises.
Raised Guidance Points to Continued Strength
Take-Two increased full-year 2026 bookings guidance by $225 million. The new $6.68 billion target implies 17% recurrent consumer spending growth. Previous guidance called for just 11% growth.
Oppenheimer maintained its Outperform rating with a $265 price target. BofA Securities kept its Buy rating at $295, calling the weakness an attractive entry point. Goldman Sachs adjusted its target to $270 from $280 while maintaining a Buy rating.
The stock has dropped 12.75% over the past week. Technical indicators show shares trading in oversold territory. Analysts expect the company to return to profitability this fiscal year with projected EPS of $3.30.
Grand Theft Auto VI Launch Confirmed
Management reaffirmed Grand Theft Auto VI’s November 19 release date. Launch marketing begins this summer. Cramer highlighted GTA as “the greatest performing entertainment property in history.”
After EA’s announced takeover, Take-Two will be the only independent publicly traded major game publisher. Cramer noted this creates “great scarcity value” for the stock.
The company’s mobile business continues gaining momentum post-Zynga acquisition. All major franchises showed broad-based strength in the quarter.
Analysts remain bullish despite the Google AI concerns. The strong Q3 results and raised guidance demonstrate execution ahead of the crucial GTA VI launch later this year.
