Take-Two Boosts FY26 Net Bookings Outlook to $6.15B with Mobile and NBA 2K Driving Growth

Take-Two Interactive has raised its FY26 net bookings outlook to $6.15B, driven by growth in mobile and the NBA 2K franchise. CEO Strauss H. Zelnick stated that fiscal 2026 is off to an excellent start, citing ongoing demand for core franchises and the diversified success of its business. The company's strong performance is expected to continue throughout the year.

Take-Two Interactive Software, Inc. (TTWO) has raised its fiscal year 2026 (FY26) net bookings outlook to a range of $6.05 billion to $6.15 billion, driven by strong performance across its mobile and NBA 2K franchises. The company reported first-quarter (Q1) 2026 net bookings of $1.42 billion, significantly above its guidance range of $1.25 billion to $1.3 billion [1].

CEO Strauss H. Zelnick opened the earnings call by stating that fiscal 2026 is off to an excellent start, citing ongoing demand for core franchises and the diversified success of its business. The company's strong performance is expected to continue throughout the year, with a focus on quality, engagement, and expanding the reach of key titles across platforms.

Key product performance updates included Toon Blast's 22% growth over last year, Match Factory!'s 33% increase, and Color Block Jam becoming the highest grossing title in the studio's history. NBA 2K25 reached over 11.5 million units sold, with daily active users and MyCAREER daily active users both up 30% and recurrent consumer spending up 48%.

The company expects to achieve record levels of net bookings in fiscal 2027, setting a higher baseline for its business and enhancing profitability. The largest contributors to net bookings are expected to be NBA 2K, the Grand Theft Auto series, Toon Blast, Borderlands 4, Match Factory!, the Red Dead Redemption series, Color Block Jam, Empires & Puzzles, and Words With Friends.

Management highlighted potential moderation in mobile growth due to the maturity of certain titles, but remains confident in the company’s pipeline and ability to deliver shareholder returns. The company expects recurrent consumer spending to grow approximately 4%, revised upward from the prior forecast of flat, and to represent 76% of net bookings.

Analysts raised questions about the sustainability of mobile growth, advertising revenue recovery, macroeconomic risks, and pricing strategy, reflecting a neutral to cautiously positive sentiment with a focus on consistency and risk management. Management maintained a confident and upbeat tone during the call, emphasizing the company's commitment to quality and the strength of its product pipeline.

References:
[1] https://seekingalpha.com/news/4482138-take-two-raises-fy26-net-bookings-outlook-to-6_15b-as-mobile-and-nba-2k-drive-growth