Take-Two Interactive Software (TTWO) Financial Results Summary
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Take-Two Interactive Software, Inc. (TTWO) Q4 2026: Flat Net Bookings, Strong Year-End Performance — Cautiously Optimistic
Take-Two Interactive Software, Inc. reported its fourth quarter results for fiscal year 2026, revealing total Net Bookings of $1.58 billion, which remained flat compared to the same quarter last year. This performance is notable as it exceeded the company's guidance range, indicating a resilient demand for its gaming portfolio despite the lack of growth year-over-year.
Key Financial Metrics
- Fourth Quarter Net Bookings: $1.58 billion (flat YoY)
- Fourth Quarter GAAP Net Revenue: $1.68 billion, up from $1.58 billion YoY (+6.3%)
- Fourth Quarter GAAP Net Loss: $59.5 million, or $0.32 per share, compared to a loss of $3,726.2 million, or $21.08 per share, in the same quarter last year.
- Fiscal Year 2026 Total Net Bookings: $6.72 billion, up 19% from $5.65 billion in fiscal year 2025.
- Fiscal Year 2026 GAAP Net Revenue: $6.66 billion, an 18% increase from $5.63 billion in fiscal year 2025.
- Fiscal Year 2026 GAAP Net Loss: $298.2 million, or $1.62 per share, compared to a loss of $4.48 billion, or $25.58 per share, in the previous year.
Analyst View
This quarter presents a mixed bag for shareholders. While the flat Net Bookings in Q4 may seem disappointing, the overall fiscal year performance shows significant improvement, with a 19% increase in total Net Bookings and an 18% rise in GAAP net revenue. The substantial reduction in net loss from $4.48 billion to $298.2 million is particularly encouraging, reflecting improved operational efficiency and cost management.
The growth in recurrent consumer spending, which rose 7% and accounted for 82% of total Net Bookings, is a positive indicator of the company's ability to monetize its existing user base effectively. The largest contributors to Net Bookings included popular titles such as NBA® 2K26 and Grand Theft Auto® Online, which continue to drive engagement and revenue.
Dividend and Share Buyback
There were no announcements regarding dividends or share buybacks in this quarter's report. However, the company provided an initial outlook for fiscal year 2027, projecting Net Bookings between $8.0 billion and $8.2 billion, which suggests a positive trajectory moving forward.
Forward Catalyst
Investors should closely monitor the upcoming launch of Grand Theft Auto VI on November 19, 2026. This title is expected to significantly impact the company's performance in fiscal year 2027, potentially setting new records for operating performance. Additionally, the company's focus on optimizing live services and expanding its development pipeline will be crucial for sustaining growth.
In summary, while the flat Net Bookings in Q4 2026 may raise concerns, the overall fiscal year results and the promising outlook for the next year provide a cautiously optimistic view for shareholders. The upcoming launch of major titles and the company's strategic initiatives will be key factors to watch in the coming quarters.
Note: The following tables present amounts in millions.
| TAKE-TWO INTERACTIVE SOFTWARE, INC. | CONSOLIDATED STATEMENTS OF OPERATIONS | (Unaudited, in millions, except per share amounts) | |||
|---|---|---|---|---|---|
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | Fiscal Year Ended March 31, 2026 | Fiscal Year Ended March 31, 2025 | ||
| Net revenue: | |||||
| Game revenue | $ 1,568.4 | $ 1,473.8 | $ 6,162.1 | $ 5,167.5 | |
| Advertising revenue | 111.4 | 108.7 | 494.3 | 466.1 | |
| Total net revenue | 1,679.8 | 1,582.5 | 6,656.4 | 5,633.6 | |
| Cost of revenue: | |||||
| Product costs | 203.2 | 205.1 | 863.8 | 821.1 | |
| Game development costs | 184.8 | 303.0 | 662.2 | 811.0 | |
| Licenses | 119.9 | 124.7 | 463.5 | 365.8 | |
| Software development costs and royalties | 150.8 | -9.7 | 439.8 | 168.1 | |
| Internal royalties | 82.4 | 156.1 | 417.4 | 405.4 | |
| Total cost of revenue | 741.1 | 779.2 | 2,846.7 | 2,571.4 | |
| Gross profit | 938.7 | 803.3 | 3,809.7 | 3,062.2 | |
| Selling and marketing expenses | 392.2 | 402.1 | 1,770.8 | 1,683.7 | |
| Research and development expenses | 262.5 | 297.8 | 1,074.6 | 1,005.2 | |
| General and administrative expenses | 223.8 | 230.2 | 874.4 | 883.3 | |
| Depreciation and amortization | 50.2 | 87.8 | 198.5 | 229.4 | |
| Goodwill impairment | — | 3,545.2 | — | 3,545.2 | |
| Business reorganization costs | -0.9 | 17.1 | -4.4 | 106.5 | |
| Total operating expenses | 927.8 | 4,580.2 | 3,913.9 | 7,453.3 | |
| Income (loss) from operations | 10.9 | -3,776.9 | -104.2 | -4,391.1 | |
| Interest and other, net | -23.6 | -25.0 | -93.6 | -100.2 | |
| Loss before income taxes | -12.7 | -3,801.9 | -197.8 | -4,491.3 | |
| Provision for (benefit from) income taxes | 46.8 | -75.7 | 100.4 | -12.4 | |
| Net loss | -59.5 | -3,726.2 | -298.2 | -4,478.9 | |
| Loss per share: | |||||
| Basic and diluted loss per share | $ -0.32 | $ -21.08 | $ -1.62 | $ -25.58 | |
| Weighted average shares outstanding | Basic | 185.3 | 176.8 | 183.9 | 175.1 |
| TAKE-TWO INTERACTIVE SOFTWARE, INC. | CONSOLIDATED BALANCE SHEETS | (in millions, except per share amounts) |
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