Take-Two Interactive 2026 Q2 Earnings Beats Expectations with 63.4% Reduced Net Loss

Take-Two Interactive (TTWO) reported Q2 2026 earnings on Nov 8, 2025, exceeding revenue expectations and raising full-year guidance. The company narrowed its net loss by 63.4% year-over-year, driven by strong performance in mobile and live services.

Revenue

Take-Two’s total revenue surged 31.1% to $1.77 billion in Q2 2026, driven by robust contributions across platforms. Mobile revenue led the charge with $821.60 million, reflecting sustained user engagement in Zynga’s portfolio. Console segment revenue reached $720 million, bolstered by ongoing support for titles like Grand Theft Auto V and Red Dead Redemption 2. PC and other revenue totaled $232.20 million, completing the diversified revenue base. The growth underscores the company’s ability to capitalize on cross-platform demand and live service monetization.

Earnings/Net Income

The company significantly reduced its net loss to $-133.90 million (or $0.73 per share) in Q2 2026, a 63.4% improvement from the $-365.50 million ($2.08 per share) loss in Q2 2025. This progress highlights improved cost management and revenue diversification, though the EPS remains negative due to ongoing investment in flagship projects.

Post-Earnings Price Action Review

The strategy of buying TTWO shares upon an earnings beat and holding for 30 days has shown favorable outcomes, supported by a 60.44% earnings surprise over the Zacks Consensus Estimate. Institutional confidence, such as Versor Investments’ $307,000 stake, reinforces this outlook. However, risks like the GTA VI delay—linked to a 7% post-announcement stock drop—remain critical. Despite these challenges, net bookings growth of 33% to $1.96 billion, driven by NBA 2K26 and recurrent spending, suggests short-term resilience.

CEO Commentary

CEO Strauss Zelnick emphasized leveraging strong IP like NBA 2K and Grand Theft Auto to drive growth, while addressing market saturation in core gaming segments. Strategic investments in AI-driven tools aim to enhance player engagement. The CEO outlined cautious optimism for H2 2026, citing upcoming launches and cross-platform accessibility as key growth drivers, despite a Q2 net loss of $133.9 million.

Guidance

Take-Two raised its H2 2026 revenue growth guidance to 8-10% year-over-year, driven by new title releases and expanded live service monetization. The company aims to maintain operating margins above 20% through cost optimization and targeted R&D spending. While no specific EPS targets were disclosed, leadership expressed confidence in achieving positive net income by Q4 2026, contingent on reduced marketing expenses and successful project execution.

Additional News

Take-Two delayed GTA VI to November 19, 2026, citing the need for polish, despite Q2 net bookings of $1.96 billion—a 33% year-over-year increase. The delay triggered a 7% after-hours stock drop, though the company raised full-year net bookings guidance to $6.4-$6.5 billion. Recurrent consumer spending grew 20%, accounting for 73% of total bookings. Institutional investors, including Versor Investments, signaled confidence with new positions, while Rockstar Games apologized for the delay, emphasizing quality over speed.