Take-Two Interactive Software Inc (NASDAQ:TTWO) shares declined more than 3% following the release of its fiscal third quarter 2026 results, despite reporting strong revenue growth and raising its full-year outlook.
For the three months ended December 31, 2025, Take-Two posted Net Bookings of $1.76 billion, up 28% from $1.37 billion in the same period last year and exceeding the company’s guidance range.
Recurrent consumer spending, including in-game purchases and subscriptions, grew 23% and represented 76% of total Net Bookings. Key contributors included NBA 2K26, Grand Theft Auto Online and Grand Theft Auto V, Red Dead Redemption 2 and Red Dead Online, as well as mobile titles like Toon Blast, Match Factory!, and Empires & Puzzles.
Revenue was $1.7 billion, surpassing the $1.59 billion consensus estimate, while GAAP net loss improved to $92.9 million, or $0.50 per share, from $125.2 million, or $0.71 per share, a year earlier.
Adjusted earnings per share were $1.23, beating the consensus of $0.83.
The company also raised its fiscal year 2026 Net Bookings guidance to a range of $6.65 billion to $6.7 billion.
Despite the upside in bookings and earnings, Take-Two shares fell in early trade on Wednesday, weighed down by elevated operating expenses and impairments. GAAP operating expenses reached $984 million, up 10% year-over-year, reflecting continued investment in research, development, and marketing ahead of the planned November 2026 launch of Grand Theft Auto 6.
“Our outstanding third quarter results reflect outperformance from all of our labels, and we are once again raising our Net Bookings outlook for fiscal 2026,” Take-Two Interactive CEO Strauss Zelnick said in a statement.
“With ongoing momentum across many of our businesses, and the highly anticipated launch of Grand Theft Auto VI on November 19th, we continue to project record levels of net bookings in fiscal 2027, which we believe will establish a new financial baseline for our business, set us on a path to enhanced profitability, and provide further balance sheet strength and flexibility.”