$Take-Two(TTWO)$ is scheduled to report its fiscal Q4 2025 earnings (which is for the quarter ending March 31, 2025) on Thursday, 15 May 2025, after market close. A conference call to discuss the results will follow.
EPS Forecast: According to Zacks Investment Research, the consensus EPS forecast based on 8 analysts is $0.69. Tipranks suggest the consensus EPS forecast to be $1.10 per share.
Revenue Forecast: The consensus revenue forecast is $1.55 billion.
Net Bookings Guidance: Take-Two has provided guidance for Net Bookings in fiscal Q4 2025 to be between $1.484 billion and $1.584 billion.
Take-Two Interactive Software (TTWO) Last Positive Earnings Call Saw Share Price Risen By 23.58%
TTWO had a positive earnings call on 06 Feb 2025 which saw its share price risen by 23.58% since.
The earnings call highlighted strong performance in key segments such as NBA 2K and the promising outlook with upcoming major game releases. However, concerns were raised regarding challenges in the mobile market and the impact of shifting operating expenses. Overall, the sentiment is positive due to the anticipated releases and strong position in core gaming franchises.
Take-Two Interactive Software (TTWO) Guidance
During the Take-Two Interactive Software, Inc. third quarter fiscal year 2025 earnings call, the company highlighted several key metrics and forward-looking guidance. The company reported net bookings of $1.37 billion, within their guidance range of $1.35 to $1.4 billion, driven by strong performance in the NBA 2K franchise, which saw over 7 million units sold and a 30% increase in recurrent consumer spending.
For fiscal 2025, the company reaffirmed their net bookings guidance of $5.55 to $5.65 billion, projecting a 5% growth over the previous year. NBA 2K, Grand Theft Auto series, and several mobile titles are anticipated to be the largest contributors. Recurrent consumer spending is expected to grow by 5%, while mobile is expected to see low single-digit growth. They also noted upcoming releases, including Grand Theft Auto VI and Borderlands 4, which are anticipated to drive record levels of net bookings in fiscal 2026 and 2027. The call also revealed a geographic net bookings split of 60% U.S. and 40% international, with a breakdown by labels of 49% Zynga, 34% 2K, and 17% Rockstar Games.
Recent Performance and Outlook
Fiscal Year 2025 Outlook Reiterated: In their Q3 2025 earnings report (released in February 2025), Take-Two reiterated their full-year fiscal 2025 Net Bookings guidance of $5.55 billion to $5.65 billion. They also maintained their outlook for operating performance.
Zynga's Match Factory is on track to become its second-largest title by the end of this fiscal year. Tune Blast and Toy Blast delivered double-digit growth.
Q3 2025 Performance: Take-Two reported Net Bookings of $1.37 billion for Q3 2025, which was within their guidance. Strong performance from NBA 2K helped offset some moderation in their mobile franchises. NBA 2K delivered a phenomenal quarter with recurrent consumer spending up over 30%, daily active users up nearly 20%, and monthly active users up nearly 10%. The title sold over 7 million units and exceeded expectations significantly.
Key Titles: The largest contributors to Net Bookings in Q3 2025 included NBA 2K25, Grand Theft Auto Online and Grand Theft Auto V, and mobile titles like Toon Blast and Match Factory!. This year is set to see the launch of major titles including Sid Meier's Civilization VII, Mafia: The Old Country, Grand Theft Auto VI, and Borderlands 4, which is expected to have a transformative effect on the business.
Shift in Operating Expenses: Take-Two indicated that their projections for Q4 2025 balance the strength in NBA 2K with continued mobile trends and a shift of some operating expenses into the period.
The company is confident in achieving record levels of net bookings in fiscal 2026 and 2027. Mobile growth was below expectations with only 6% increase instead of the low double-digit growth forecasted, primarily due to underperformance in the hyper-casual mobile portfolio and Empires and Puzzles.
A shift in timing of expenses from the third to the fourth quarter is expected to affect fourth-quarter performance.
Grand Theft Auto VI Impact
While the fiscal Q4 2025 results won't include the release of Grand Theft Auto VI, any updates or commentary regarding its development and upcoming release (now planned for 26 May 2026) will be closely watched by investors.
Grand Theft Auto V has sold over 210 million units worldwide. GTA Online continues to perform well with membership growth for GTA Plus increasing 10% year-over-year.
Take-Two has reiterated its expectation for sequential increases and record levels of Net Bookings in fiscal years 2026 and 2027, heavily driven by the anticipated launch of GTA VI.
Take-Two Interactive Software (TTWO) Price Target
Based on 29 analysts from Tiger Brokers offering 12 month price targets for Take-Two in the last 3 months. The average price target is $227.41 with a high forecast of $270.00 and a low forecast of $137.43. The average price target represents a 0.51% change from the last price of $226.25.
As of 12 May 2025, the stock closed at $226.25. It reached an all-time high of $238.00 on 30 April 2025. Analysts generally have a positive outlook on the stock, with a consensus rating of "Strong Buy." Price targets vary, with some suggesting further upside potential.
Historically, the stock has shown a tendency for positive one-day returns following earnings announcements.
Technical Analysis - Exponential Moving Average (EMA)
Take-Two's stock (TTWO) has shown strong performance over the past year. Take-Two's performance is heavily reliant on the success of its major franchises. The mobile gaming segment is also a significant contributor to their revenue. The market will be keen to hear any updates on their development pipeline beyond GTA VI.
The recent stock performance have been encouraging as we are seeing that the bulls are back in control as they have managed to defend the 26-EMA and 50-EMA key level, but RSI have not been showing a convincing increased momentum, so we might see some investors who could be looking t take profits before the earnings call if there is a positive upside for TTWO over the next two days.
Currently, we are not seeing a potential sell-off for TTWO based on the short interest analysis, but as mentioned above, there might be some investors who would take profits at the earnings call because in the past, there have been a nice gap up after the earnings call.
Summary
The fiscal Q4 2025 earnings report for Take-Two will be important for assessing the company's performance in the final quarter of their fiscal year and for any updated outlook. While GTA VI's release is still some time away, any commentary surrounding it will likely influence investor sentiment. The market will be looking to see if Take-Two meets its Net Bookings guidance and provides a positive outlook for the coming fiscal year, building towards the highly anticipated GTA VI launch.
Appreciate if you could share your thoughts in the comment section whether you think TTWO could provide a much better Net Bookings guidance for coming fiscal year.
@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
Comments