Take-Two Interactive Software Inc
Q1 2027 Earnings
Includes a $43.4 million impairment charge related to cancellation of an unannounced title from a third-party developer
Market Reaction
Did TTWO Beat Earnings? Q1 2027 Results
Take-Two Interactive kicked off fiscal 2027 on a stronger-than-expected note, posting GAAP earnings per share of negative $0.18 for its first quarter, a 13.92% beat against the consensus estimate of negative $0.21, while revenue of $1.53 billion topped expectations by 12.73% and edged up 2.0% year-over-year. The quarter's GAAP figures include a $43.4 million impairment charge tied to the company's decision to cancel an unannounced title from a third-party developer, which contributed to a wider GAAP net loss of $34.1 million versus $11.9 million a year ago. Despite that headwind, recurrent consumer spending, spanning virtual currency, add-on content, and in-game purchases, powered 84% of net revenue, with mobile alone contributing $762.3 million, or half of total sales. The company held firm on its full-year FY27 outlook of $8.0 to $8.2 billion in Net Bookings, anchored by the November 19, 2026 launch of Grand Theft Auto VI, a release that suppliers and partners across the gaming ecosystem have already flagged as a critical industry catalyst heading into the holiday season.
- NBA 2K was the largest contributor to both Net Bookings and GAAP net revenue
- Grand Theft Auto series was the second largest contributor
- Recurrent consumer spending accounted for 84% of total Net Bookings and GAAP net revenue
- Console net revenue grew from 37% to 42% of total mix year-over-year
- Digital online distribution accounted for 98% of total net revenue
“Our excellent first quarter results reflect the power of our portfolio and disciplined execution across all of our labels. With these positive trends and excitement around the November 19th launch of Grand Theft Auto VI, we are reiterating our Fiscal 2027 Net Bookings outlook of $8.0 to $8.2 billion. Looking further ahead, we expect to sustain this new level of scale and generate strong cash flows, setting us on a path to deliver continued growth and long-term shareholder returns.”
Take-Two Interactive CEO, on the earnings call
Forward Guidance & Outlook
Take-Two reiterated its full fiscal year 2027 Net Bookings outlook of $8.0 to $8.2 billion. GAAP net revenue is expected at $7,900 to $8,100 million. GAAP net income is expected at $104 to $143 million, or $0.55 to $0.75 per diluted share. EBITDA is expected at $993 to $1,053 million. Net cash from operating activities is expected to exceed $1,000 million, with capital expenditures of approximately $290 million. For Q2 FY27 (ending September 30, 2026), the company expects Net Bookings of $1,620 to $1,670 million, GAAP net revenue of $1,420 to $1,470 million, and a GAAP net loss of $157 to $140 million ($0.84 to $0.75 loss per share). Q2 EBITDA is expected at $(20) to $4 million. Key assumptions include a continuation of the current economic backdrop, timely delivery of titles, continued PS5 and Xbox Series X|S installed base growth, and stable foreign exchange rates.
TTWO YoY Financials
TTWO Revenue by Segment
TTWO Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.