Take-Two Set to Report Q1 Earnings: What's in the Cards for the Stock?

The Zacks Consensus Estimate for TTWO’s fiscal first-quarter revenues is pegged at $1.35 billion, indicating a 4.81% year-over-year decline.

The consensus mark for earnings is pegged at 31 cents per share, unchanged over the past 30- and 60-day periods. The estimate indicates a 49.18% year-over-year decline.

However, TTWO beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with an average surprise of 69.36%.

Let us see how things have shaped up for the upcoming announcement.

Key Factors Expected to Shape TTWO's Q1 Results

Take-Two is expected to have benefited in the first quarter of fiscal 2027 from Rockstar Games beginning the marketing campaign for Grand Theft Auto VI ahead of its Nov. 19 launch. Early promotional activity likely increased consumer awareness, strengthened pre-order momentum, enhanced franchise engagement and reinforced investor confidence during the quarter under review. The company also introduced record fiscal 2027 Net Bookings guidance of $8.0-$8.2 billion, reflecting confidence that GTA VI and the broader portfolio would drive a new phase of growth and long-term cash generation.

Following a record fiscal 2026, Take-Two entered the first quarter of fiscal 2027 with strong operational momentum. The company generated record net bookings, delivered operating cash flow above forecast and expects to produce more than $1 billion in operating cash flow during fiscal 2027. Management also highlighted a pipeline of multiple upcoming releases alongside continued content updates across existing franchises. This combination of financial strength, a diversified release schedule and recurring live-service engagement is expected to have supported execution during the quarter under review.

Take-Two's diversified mobile portfolio remained an important contributor to growth, supported by strong performances from Toon Blast, Match Factory!, Color Block Jam, Empires & Puzzles and Top Eleven. At the same time, the company's direct-to-consumer platform continued expanding through additional mobile integrations, lower payment friction and an improved user experience, resulting in higher conversion rates, stronger customer loyalty and better margins. Management also expressed greater confidence in the platform's long-term growth prospects. These factors are expected to have supported resilient first-quarter fiscal 2027 bookings and high-margin recurring revenues.

Against the momentum, TTWO expects recurrent consumer spending (RCS) to remain flat year over year for fiscal 2027 despite the anticipated launch of Grand Theft Auto VI later in the year. Since RCS represents a significant portion of Take-Two's net bookings, the lack of expected growth suggests that ongoing monetization from live services may not provide the same level of incremental support seen in fiscal 2026. This dynamic is likely to have constrained first-quarter fiscal 2027 bookings and limited near-term revenue momentum before the company's major release schedule accelerates.

What Our Model Says About TTWO Stock

Our proven model does not conclusively predict an earnings beat for Take-Two this time around. According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here, as you can see below.

TTWO has an Earnings ESP of 0.00% and a Zacks Rank #1 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat earnings this season.

Six Flags Entertainment Corporation FUN currently has an Earnings ESP of +6.90% and sports a Zacks Rank #1. FUN shares have returned 4.7% in the past six months. FUN is set to report its second-quarter 2026 results on Aug. 6. You can see the complete list of today’s Zacks #1 Rank stocks here.

Corsair Gaming CRSR currently has an Earnings ESP of +9.09% and a Zacks Rank #2. CRSR shares have surged 135.4% in the past six months. CRSR is slated to report second-quarter 2026 results on Aug. 6.

Marriott Vacations VAC has an Earnings ESP of +5.26% and a Zacks Rank #2 at present. VAC shares have jumped 80% in the past six months. VAC is set to report its second-quarter 2026 results on Aug. 6.

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This article originally published on Zacks Investment Research (zacks.com).

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