Key Takeaways for Take-Two Interactive Stock
- Take-Two reported Q4 fiscal 2026 net bookings of $1.58 billion, beating the high end of its own guidance range.
- Operating income turned positive in Q4 at $40 million, reaching a 2% operating margin versus negative 10% two years prior.
- TIKR’s model values Take-Two Interactive stock at around $446, implying roughly 111% total return from the current price of $212.
If Take-Two’s income statement is finally inflecting, the data behind it is worth examining before GTA VI changes the story entirely. Pull up TTWO’s full financial history on TIKR for free →
Take-Two Posts a Positive Operating Quarter as GTA VI Looms Over Everything Ahead
Take-Two Interactive (TTWO) closed fiscal year 2026 with Q4 net bookings of $1.58 billion, above the high end of its own guidance range of $1.51 billion to $1.56 billion, as the company simultaneously confirmed a November 19 launch date for Grand Theft Auto VI.
Take-Two is one of the largest interactive entertainment companies in the world, operating through three publishing labels: Rockstar Games, responsible for the Grand Theft Auto and Red Dead Redemption franchises; 2K, home to NBA 2K, WWE 2K, and PGA TOUR 2K; and Zynga, the mobile business behind Toon Blast, Match Factory!, and Empires and Puzzles.
Recurrent consumer spending (meaning in-game purchases, subscriptions, and live service revenue that players generate after buying a game) grew 7% year-over-year in Q4 and accounted for 82% of total net bookings.
For the full fiscal year, recurrent consumer spending grew 17%, with NBA 2K up over 30%, mobile up 13%, and Grand Theft Auto Online up 6%, all of which, according to CFO Lainie Goldstein on the Q4 earnings call, “sharply exceeded our initial May guidance.”
Zynga achieved its highest net bookings since Take-Two acquired it for $9.7 billion in 2022.
Red Dead Redemption 2 reached its highest annual unit sales since its launch year, with over 85 million units sold to date, and Grand Theft Auto V now stands at nearly 230 million units.
Meanwhile, GTA VI is guided to drive fiscal 2027 net bookings to a record range of $8 billion to $8.2 billion, which would represent roughly 20% growth over fiscal 2026.
Goldstein confirmed that on a management basis, operating expenses rose 7% year-over-year in fiscal 2026, a pace she described as “strong leverage over the prior year.”
The income statement data behind Q4 is where the investment case sharpens. See Take-Two’s full revenue and margin history on TIKR →
TTWO’s Q4 Operating Income Turned Positive, But the Eight-Quarter Margin Path Is the Real Story
Take-Two’s revenue grew 6% year-over-year in Q4 to $1.68 billion, continuing a multi-quarter reacceleration from the contraction posted two years prior.
Cost of goods sold fell 5% in Q4, and gross profit held at $970 million.
That produced a gross margin of 58%, consistent with the range-bound performance across the past eight quarters.
Also, the more significant shift is in total operating expenses, which declined to $930 million in Q4.
That compression while revenue grew 6% produced the quarter’s most consequential result: operating income of $40 million.
A 2% operating margin in Q4 marks the first clearly positive operating quarter in the eight-quarter data set.
The contrast to the operating loss of negative $140 million posted in Q1 fiscal 2025 shows that the cost structure is bending toward revenue, not expanding with it.
SG&A fell to $620 million in Q4, while R&D held at $260 million, meaning the improvement came from selling and administrative discipline rather than reduced development investment.
Over eight quarters, TTWO’s operating margin moved from negative 10% to positive 2%, while gross margin remained range-bound between 54% and 63%.
Take-Two Trades at a Persistent Operating Margin Discount to EA Across All Eight Quarters
Electronic Arts has held a positive operating margin in every quarter of the eight-quarter comparison, ranging from a low of 9% to a high of 24% in the most recent period ending March 2026.
Take-Two’s operating margin turned positive for the first time in the data set in that same quarter, reaching 2%.
The gap between TTWO and Electronic Arts (EA) peaked at roughly 30 percentage points in Q2 fiscal 2025, when Take-Two posted negative 21% against EA’s positive 21%.
Meanwhile, Roblox (RBLX) has run deeper operating losses than Take-Two in six of the eight quarters, reaching negative 30% in Q1 fiscal 2026.
In Q4, Roblox’s operating margin deteriorated further to negative 16%, even as Take-Two’s crossed into positive territory for the first time.
EA’s Q4 margin expansion to 24% while Take-Two reached only 2% illustrates the scale of structural distance that still exists, even at Take-Two’s recent inflection point.
The peer data confirms that Take-Two’s operating leverage story is real but early: it has closed the gap with Roblox decisively, and it is now at least on the same side of zero as EA.
TIKR’s $446 Target on TTWO Stock Holds If Operating Leverage Survives the GTA VI Launch Cycle
TIKR’s model values Take-Two Interactive at approximately $446 by March 2031, implying around 111% total return from the current price of $212, or roughly 17% per year.
The credibility of that target rests on whether the operating leverage visible in Q4 holds as GTA VI marketing spend accelerates through fiscal 2027.
Goldstein confirmed on the earnings call that fiscal 2027 management-basis operating expense growth is expected at roughly 8% year-over-year, driven primarily by GTA VI marketing costs, while net bookings are guided to grow around 20%; if that ratio holds, operating income should step up meaningfully from Q4’s $40 million starting point.
Explore the full TIKR valuation model for Take-Two Interactive stock and stress-test the assumptions yourself. Access TIKR’s valuation tools for free →
Should You Invest in Take-Two Interactive Software, Inc.?
The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.
Pull up Take-Two Interactive Software, Inc. stock and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
You can build a free watchlist to track Take-Two Interactive Software, Inc. alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.
Access Professional Tools to Analyze TTWO stock on TIKR for Free →
