Take-Two Interactive Software (NASDAQ:TTWO) Beats Q2 Estimates but Stock Falls on Grand Theft Auto VI Delay

Take-Two Interactive Software (NASDAQ:TTWO) delivered a quarterly financial performance that handily surpassed analyst expectations, yet the market's immediate reaction was one of disappointment, sending shares lower in after-hours trading. The video game publisher's fiscal second quarter 2026 results, ended September 30, 2025, showcased robust growth but were overshadowed by a revised release date for its most anticipated title.

Quarterly Performance Versus Expectations

The company's top and bottom-line results for the quarter demonstrated significant strength, exceeding the forecasts set by Wall Street analysts. The performance highlights a clear beat on both key financial metrics.

• Revenue: Net Bookings, the company's operational metric, reached $1.96 billion, a 33% increase compared to the $1.47 billion reported in the same quarter last year. This figure substantially exceeded the analyst estimate of $1.76 billion.
• Earnings Per Share: The company reported a Non-GAAP EPS of $1.46, which dramatically outperformed the analyst consensus estimate of $0.94.

This strong quarterly showing was attributed to what CEO Strauss Zelnick described as "releasing new hit titles, driving innovation in live services, and maintaining our commitment to developing the highest quality products." Key contributors included the latest iterations of the NBA 2K series, the successful launch of Borderlands 4, and enduring engagement with titles from the Grand Theft Auto and Red Dead Redemption franchises.

Forward Guidance and Market Reaction

Despite the impressive quarterly beat, the company's stock traded down approximately 7% in after-hours trading following the report. This negative price action appears to be primarily driven by the company's updated product roadmap, specifically a delay for its blockbuster title.

The company raised its Net Bookings forecast for the full 2026 fiscal year to a range of $6.40 billion to $6.50 billion, marking the second consecutive quarter it has lifted its outlook. However, the market's focus was drawn to the announcement that Rockstar Games will now release Grand Theft Auto VI on November 19, 2026—a six-month delay from its previously expected launch window.

For the upcoming fiscal third quarter ending December 31, 2025, Take-Two provided Net Bookings guidance of $1.55 billion to $1.60 billion. The midpoint of this range, $1.575 billion, sits above the analyst sales estimate of $1.527 billion for the period, indicating that near-term operational momentum remains strong.

Press Release Highlights

Beyond the financial figures, the earnings report contained several key operational and strategic points that define the company's current trajectory. The performance was heavily supported by recurrent consumer spending, which includes virtual currency and in-game purchases, accounting for 73% of total Net Bookings and showing 20% year-over-year growth.

The company's product release schedule remains active, with several major titles launched in the quarter, including NBA 2K26, Mafia: The Old Country, and Borderlands 4. Looking ahead, the pipeline includes WWE 2K26 and mobile titles like CSR 3 and Top Goal, all building towards the eventual launch of Grand Theft Auto VI in late 2026. Management expressed confidence that this robust pipeline will establish "record levels of Net Bookings in Fiscal 2027."

Conclusion

Take-Two Interactive's fiscal Q2 2026 was a fundamental success, with the company beating earnings and revenue estimates while raising its full-year guidance. The disconnect between these strong results and the negative market reaction underscores the high expectations embedded in the stock's valuation, particularly surrounding the timing of its flagship Grand Theft Auto franchise. Investors are seemingly weighing the positive operational performance against the delayed gratification of the company's largest potential revenue driver.

For a detailed look at historical earnings and future analyst estimates for Take-Two Interactive Software, visit the earnings and estimates page for TTWO.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The author has no position in the stock mentioned. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.