Is Take-Two Interactive Stock a Steal Ahead of Grand Theft Auto 6 Release?

Take-Two Interactive Software, the publisher of Grand Theft Auto, is approaching a major release with GTA VI in May 2026. The game is expected to be a blockbuster, with a reported $1 billion development cost. The company's fiscal first-quarter revenue rose 12% YoY, and it raised its revenue outlook for the fiscal year. However, the business is not profitable. Take-Two's success is heavily reliant on the GTA franchise, which has sold over 455 million units. The company has additional successful franchises launching new titles in September, which are expected to boost revenue in the fiscal second quarter.

Take-Two Interactive Software, the publisher of the popular Grand Theft Auto (GTA) series, is gearing up for a major release with GTA VI, slated for May 2026. The game is expected to be a blockbuster, with a reported development cost of over $1 billion [1]. The company's fiscal first-quarter revenue rose by 12% year-over-year (YoY), and it has raised its revenue outlook for the fiscal year. However, Take-Two's business remains unprofitable, with a net loss of $11.9 million in the first quarter [1].

The success of the GTA franchise is critical to Take-Two's financial performance. The series has sold over 455 million units, with GTA V alone accounting for over 215 million units sold since its debut in 2013 [1]. The franchise continues to be a significant contributor to the company's revenue, representing 15% of Take-Two's Q1 sales [1].

In addition to GTA VI, Take-Two has other successful franchises launching new titles in September. NBA 2K26 is set to release on September 5, and Borderlands 4 will follow on September 12. These releases are expected to boost revenue in the fiscal second quarter, with sales projected to range between $1.65 billion and $1.7 billion [1].

Despite the sales growth, Take-Two's business is not yet profitable. However, the company's operating income improved significantly, with a turnaround from a loss of $184.9 million in the prior year to an operating income of $21.6 million in the first quarter [1]. Digital content sales, which now represent 98% of Take-Two's revenue, are a key driver of this improvement [1].

The stock's price-to-sales (P/S) ratio has been increasing steadily over the past year, suggesting that shares are not cheap and that the anticipated sales boost from upcoming popular titles may already be priced into the stock [1]. Investors should consider using strategies like dollar-cost averaging to build their positions over time.

In conclusion, while Take-Two Interactive Software faces challenges with profitability, the upcoming release of GTA VI and the launch of new titles in September present strong opportunities for revenue growth. Investors should carefully evaluate the stock's valuation and consider their risk tolerance before making investment decisions.

References:
[1] https://www.nasdaq.com/articles/grand-theft-auto-6-slated-may-2026-take-two-interactive-stock-steal-2025