Take-Two Interactive Software Inc (NASDAQ:TTWO) is expected to post fiscal second quarter 2026 results largely in line with guidance, according to analysts at Wedbush, who have raised their price target on the ‘Outperform’-rated stock to $290 from $275.
Shares of Take-Two traded hands at $255, up almost 40% this year.
The analysts highlighted that while Take-Two released a “substantial line-up of titles this quarter,” unit sales appear to have been “a mixed bag.”
They project net bookings of $1.75 billion and EPS of $0.95, compared with consensus estimates of $1.73 billion and $0.92, and company guidance of $1.7 billion to $1.75 billion and $0.85 to $0.95. That guidance implies year-over-year bookings growth of about 18% at the high end.
The quarter featured several high-profile releases, including Borderlands 4, Mafia: The Old Country, and NBA 2K26. All three titles received strong reviews, with NBA 2K26 “touted as the best iteration in the series” and Borderlands 4 achieving “the series’ second-highest Metacritic score.”
Wedbush wrote that NBA 2K26 likely exceeded its launch quarter estimate of 4.7 million units, while Borderlands 4 and Mafia: The Old Country likely came in slightly below expectations.
The analysts also pointed to solid ongoing mobile performance from the company’s Match Factory! division, with Toon Blast and Toy Blast maintaining strong momentum.
Wedbush reiterated confidence in Take-Two’s long-term positioning, emphasizing the company’s diversification and high-quality intellectual property.
“Take-Two has consistently demonstrated that, despite its reliance on GTA, its business is well-diversified with compelling, high-quality IP across its various categories,” the analysts wrote.
Looking ahead, Wedbush maintained its fiscal year estimates and continues to expect Grand Theft Auto VI to launch in May 2026.
The firm’s full-year forecasts call for net bookings of $6.2 billion and EPS of $2.92, roughly in line with consensus.
For fiscal 2027 and 2028, Wedbush estimates net bookings of $9.79 billion and $8.54 billion, with EPS of $8.77 and $10.82, respectively.
The analysts see potential upside from stronger integration of GTA Online into the core game and from “the benefit of court-mandated changes to Apple’s App Store policies,” which could each contribute as much as $1 per share in incremental earnings in fiscal 2027 and 2028.
Wedbush said it believes a higher valuation multiple is warranted as Take-Two approaches the next Grand Theft Auto release.
“We believe the premium multiple is warranted as we inch closer to the GTA VI launch,” the firm wrote, citing potential profit drivers including “the higher price point for GTA VI, integration of the game into GTA Online, and significant margin expansion from its first-party web store.”
Take-Two will report results for the quarter ended September 30 after markets close on November 6.