Take-Two posts Q2 FY27 revenue miss; EPS beats consensus, trails whisper

Take-Two Interactive reported fiscal second-quarter 2027 results on its earnings call on November 9, 2026, with Shacknews framing the outcome as a miss on revenue and earnings-per-share whisper numbers, or unofficial earnings expectations, in the publisher’s final quarter before Grand Theft Auto VI launches on November 19, 2026.

Shacknews reported earnings per share of $0.99, beating the $0.90 consensus estimate but trailing the $1.05 whisper number. The outlet did not describe the figure as a loss. 24/7 Wall St. reported a GAAP loss of $0.29 per share, using generally accepted accounting principles, beating a consensus loss of $0.86 per share. The GAAP figure comprises acquired intangible amortization, a tax benefit on income, and other income from fair-value changes in equity investments plus Turkish Lira revaluation.

Take-Two shares dipped to $201.50 in after-hours trading on November 9 and later reached $216.00, Shacknews reported, after an initial decline that was later pared. TTWO shares had gained 13 percent during the week preceding the release, 24/7 Wall St. said, attributing the rise to investors positioning ahead of the Grand Theft Auto VI launch.

Take-Two reported Q2 net bookings of $1.6 billion, slightly below its guidance range of $1.62 billion to $1.67 billion, according to the earnings call transcript. Strauss Zelnick said net bookings came in modestly below range during prepared remarks, while NBA 2K27 achieved strong but below-forecast performance. Lainie Goldstein later repeated the $1.6 billion figure and the same guidance range on the call. 24/7 Wall St. said net bookings dropped 18 percent to $1.60 billion during a quarter that lacked a major release besides NBA 2K27, which launched September 4, 2026, alongside a July Grand Theft Auto Online update.

Take-Two reported GAAP net revenue down 16 percent to $1.5 billion. Cost of revenue for the quarter fell 20 percent to $637 million, while operating expenses fell 9 percent to $978 million, according to the earnings call transcript. The quarterly operating expense decline was described as favorable to forecast because of lower personnel and user acquisition costs on a management basis. Recurrent consumer spending fell 9 percent in the quarter versus a guided 5 percent drop and represented 81 percent of net bookings.

NBA 2K27 posted the second-best net bookings result in franchise history, though it fell short of Take-Two’s forecast, Strauss Zelnick said. Sales of the game have topped 4 million units since its September 4 launch. Zelnick called the launch the most realistic and authentic NBA experience, noting a busy launch window with competing entertainment. The Grand Theft Auto series exceeded Take-Two’s forecast ahead of the Grand Theft Auto VI launch, Zelnick added, and cumulative worldwide sales for Grand Theft Auto V stand at nearly 235 million units.

Zelnick cited the cumulative sales figure while discussing the continued expansion of the game’s audience during the quarter. Grand Theft Auto series metrics improved double digits for recurrent spending and GTA+ average monthly members during the quarter, linked to The Kortz Center Heist update, monthly events, and new races.

Guidance for fiscal 2027 net bookings remained at $8 billion to $8.2 billion despite the quarterly shortfall. The company expects FY27 GAAP net revenue of $7.98 billion to $8.18 billion, cost of revenue of $3.68 billion to $3.8 billion, and operating expenses of $4.08 billion to $4.1 billion. Management expects full-year operating expense growth of roughly 5% year over year, favorable to the prior forecast because of lower user acquisition costs. The CFO attributed the expense growth to Grand Theft Auto VI marketing and higher research and development costs.

The publisher kept its full-year GAAP diluted earnings-per-share forecast unchanged.

Management projects Q3 net bookings between $3.35 billion and $3.5 billion, versus $1.76 billion a year earlier, and Q3 GAAP net revenue of $3.27 billion to $3.42 billion. The third-quarter outlook calls for operating expenses of $1.16 billion to $1.18 billion, with management expecting Q3 operating expenses to grow roughly 21% year over year, primarily driven by Grand Theft Auto VI marketing costs. Third-quarter GAAP net revenue guidance stands at more than twice the prior quarter’s level, and the outlook calls for roughly 12% growth in recurrent consumer spending. The Q3 guidance assumes significant Grand Theft Auto series growth driven by Ultimate Edition sales, NBA 2K growth, and a mobile decline.

Grand Theft Auto VI comes to PlayStation 5 and Xbox Series X and S. Strauss Zelnick said Grand Theft Auto VI pre-orders exceeded the company’s expectations and are tracking far above initial expectations. Grand Theft Auto VI preloads are rolling out across the world ahead of the launch, Karl Slatoff said, describing the activity as a defining moment for the company and entertainment industry days before launch.

Marketing for Grand Theft Auto VI is well underway globally and included an extended look on Netflix that drew 31 million consumers in its first four days, Strauss Zelnick said. The Netflix title became the platform’s most viewed for the week. Zelnick linked the pre-order trend to the upcoming launch and said the numbers will speak for themselves soon enough. Management said awareness and anticipation for the Grand Theft Auto VI campaign are trending positively.

Management projects the fiscal 2027 net bookings split at approximately 37 percent Rockstar Games, 34 percent Zynga, and 29 percent 2K. The biggest FY27 net bookings contributors are expected to include the Grand Theft Auto series, NBA 2K, Toon Blast, Match Factory, Empires & Puzzles, Words With Friends, Red Dead Redemption series, Color Block Jam, WWE 2K, and Zynga Poker. Management sees fiscal 2027 recurrent consumer spending in line with the prior year at 65 percent of net bookings.

The forecast counts on strong sales of Grand Theft Auto VI: Ultimate Edition, a version that includes add-on content, and assumes high single-digit growth for NBA 2K. Management forecasts a mobile decline tied to last year’s Color Block Jam performance and softening trends for older Zynga titles.

Color Block Jam net bookings fell by a double-digit percentage from its prior-year second-quarter peak, while Toon Blast net bookings rose 4% versus last year’s record second quarter, helped by a Beam feature that aids puzzle solving. Words With Friends net bookings grew 6% from a collaboration with the TV show Wheel of Fortune, which included a dedicated on-air theme week, in-game puzzles, and online events. Take-Two’s advertising business improved sequentially as the company attracted new partners and increased ad yields. Mobile led console in Q2 net bookings, 24/7 Wall St. noted.

Take-Two says it remains on track for more than $1 billion in operating cash flow and a net cash position by fiscal year-end. Capital spending plans remain at roughly $290 million for the year. Short-term debt climbed to $629.2 million from $30.0 million as cash and equivalents declined year over year, 24/7 Wall St. reported. The outlet said management needs to deliver this cash flow to keep the balance sheet manageable as Grand Theft Auto VI costs come due.

The publisher topped EPS estimates in six straight quarters before Q1 2027’s narrow miss, and the Q2 headline EPS beat ranks as the largest in that stretch by percentage, 24/7 Wall St. reported. Strauss Zelnick declined to give fiscal 2028 guidance during the earnings call. The publisher has 13,000 colleagues around the world, and Strauss Zelnick thanked them in his closing remarks on the call.

Fifteen Take-Two franchises have each sold at least 5 million units in a single PC or console release, Strauss Zelnick said. The Borderlands franchise has surpassed 100 million units sold. Zelnick mentioned the milestone while discussing Borderlands 4 downloadable content and promotions driving engagement and retention. Take-Two plans to release PGA TOUR 2K27 and WWE 2K27 later in fiscal 2027, and Karl Slatoff said 2K will provide updates on both titles in the coming months.

Firaxis announced Arc of Tomorrow and Earthrise for Sid Meier’s Civilization VII for 2027, with Arc of Tomorrow a free update extending gameplay into the Atomic Age and Earthrise the first major premium expansion featuring space-era progression.

The NBA 2K All-Star mobile game has reached 11 million registered users since its launch last year, and Strauss Zelnick described the Tencent partnership title as yielding strong profit margins in China. Downloads for WWE SuperCard Season 13 total nearly 40 million since launch, a figure Karl Slatoff cited while discussing recent mobile and console releases. Strauss Zelnick said the company is concentrating on stronger technical defenses and legal steps in response to AI-assisted reverse engineering, adding that piracy would be difficult to replicate due to technical limitations but may become more of a challenge.