Take-Two Interactive Software Inc (NASDAQ:TTWO)’s quarterly results were viewed positively by Wedbush analysts, who pointed to broad-based portfolio strength and reaffirmed confidence in the company’s outlook despite a softer-than-expected fiscal 2027 bookings guide.
Investors weren’t so upbeat, sending shares of Take-Two down more than 4% to about $228 on Friday morning.
Wedbush highlighted improving visibility around Grand Theft Auto VI’s release timeline, alongside steady momentum in recurring consumer spending.
“Take-Two beat Q4 2026 expectations and reaffirmed that GTA VI is on track for its November 19, 2026, release,” wrote Wedbush analysts. “Early financial year 2027 guidance came in below expectations, but appears overly conservative.”
While the fiscal 2027 outlook fell short of consensus, Wedbush said it views the guidance as consistent with the company’s typical approach ahead of major releases. “Financial year 2027 initial guide of $8 billion to $8.2 billion (up 20% year-over-year) was below our prior $9.4 billion estimate and $9.3 billion consensus, which we view as intentional conservatism consistent with Take-Two’s historical floor-guidance pattern in major launch years,” they wrote.
The analysts said they trimmed some estimates but maintained a constructive stance on the underlying business mix and engagement trends across franchises. “We lowered our estimates to reflect lower Mobile expectations on tough comps and maturing titles and lower back-catalog sales around the GTA VI launch,” they wrote. “That said, we remain highly optimistic as Take-Two’s portfolio performs well across categories.”
Wedbush reiterated its ‘Outperform’ rating, Best Ideas List inclusion, and $300 price target on Take-Two.
On valuation, they argued the stock does not yet reflect the scale of the upcoming GTA VI release or the contribution from recurring revenue streams. “The stock trades at just 23x consensus FY:28 EPS, which, in our view, does not incorporate the scale of the GTA VI launch and the growing mix of high-margin recurring revenue,” they wrote.
The firm also increased confidence in the GTA VI release timeline following the latest update, seeing the probability that the November date will hold going from 75% to 90%.
On quarterly performance, Wedbush highlighted results that exceeded expectations across key metrics. “Q4 net bookings of $1.58 billion exceeded the high end of guidance ($1.51 billion to $1.56 billion) and surpassed our estimate of $1.56 billion and consensus of $1.555 billion,” they wrote.
They added that recurrent spending remained a core driver of performance, while Zynga delivered notable strength within the mobile segment.