TTWO US S&P 500NASDAQ-100Russell 1000 Earnings call
Take-Two Interactive (TTWO) · Q2 2026 results and valuation
Share price: $231.31 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q1 2027 · published 7 Aug 2026 and 21 May 2026
Net loss narrowed on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
Loss narrowed
Net income vs Q1 2026
Outlook given
Net income -34.1M vs -59.5M
Revenue −8.7%
Net income -34.1M vs -11.9M in Q2 2025 and -59.5M last quarter.
2 · How management spoke
Typical
More upbeat than 50% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Guidance
The company forecasts operating cash flow in excess of $1 billion, indicating it remains on track to be in a net position.
Valuation
Is Take-Two Interactive undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-03-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 7.6% growth a year (3-year revenue growth), the model's fair value is $44.41 a share — the stock trades 421% above it. Today's price assumes 29.2% growth a year.
Current price
$231.31
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+29.2% for 10 yrs
Fair value / share
$44.41
Buy below
$33.31
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Guidance
Net bookings are now expected to split roughly 37% Rockstar Games, 34% Zynga, and 29% 2K.
Source quote
“We now expect the net bookings breakdown from our labels to be roughly 37% Rockstar Games, 34% Zynga and 29% 2K.”
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Key theme
Take-Two Interactive expects to sustain this new level of scale and generate strong cash flows for the next several years as it releases…
Source quote
“We expect to sustain this new level of scale and generate strong cash flows for the next several years as we release... We're reiterating our fiscal 2027 outlook for net bookings of $8 billion to $8.2 billion, which reflects both ongoing positive trends in our business and our high degree of confidence around the November 19 release of Grand Theft Auto VI. Now turning to highlights for the...”
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Guidance
Take-Two Interactive continues to expect GAAP net revenue to range from $7.9 billion to $8.1 billion, while it now expects cost of revenue to range from $3.54 billion to $3.66…
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Engagement was up meaningfully during the quarter with recurrent consumer spending growing 7%, driven by a 15% increase in average daily active users, a 25% increase in MyCAREER daily active...”
“As we bring these opportunities to fruition, we are confident in our ability to enhance our financial profile further and generate strong cash flows, setting us on a path to...”
“We expect to sustain this new level of scale and generate strong cash flows for the next several years as we release our robust development pipeline, capitalize on incremental opportunities...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.53B | 1.68B | −8.7% | 1.50B | +2.0% |
| Gross profit | 882.5M | 938.7M | −6.0% | 945.0M | −6.6% |
| Operating income | -35.5M | 10.9M | Turned loss | 21.6M | Turned loss |
| Net income | -34.1M | -59.5M | Loss narrowed | -11.9M | Loss widened |
| EPS | -0.18 | -0.32 | Loss narrowed | -0.07 | Loss widened |
| P/E | 12-mo loss | 12-mo loss | — | 12-mo loss | — |
Topics
Most discussed now
- New The change in technology that will allow a console experience effectively to become a mobile experience probably broadens the market.
- These important factors are described in Take-Two Interactive's filings with the SEC, including the company's most recent annual report on…
- On July 30, 2K and Gearbox launched Bounty Pack 4: Mergers and Acquisitions for Borderlands 4, which includes a new...
- Take-Two Interactive achieved excellent first quarter results driven by its powerful franchises, industry-leading talent and unwavering…
- Without regard to what happens in the console business, which is a consequence to it, of course, Take-Two Interactive sees the...
Faded since Q1 2026
- Dropped To the extent that technology allows anyone to do a better job in asset creation, naturally, Take-Two Interactive will avail itself with...
- Dropped You're not going to see us doing deals hand over fist.
- Dropped This is Take-Two Interactive's best estimate sitting here today.
- Fading NBA 2K delivered record net bookings and recurrent consumer spending.
Latest announcements
Official filings, newest first.
- Material agreement · SEC 8-K
- Articles or bylaws amended; Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change; Shareholder vote results · SEC 8-K
- Other events · SEC 8-K