TTWO Q1 Earnings Call Keeps GTA VI at Center of FY27 Outlook

Goldstein reiterated fiscal 2027 Net Bookings guidance of $8 billion to $8.2 billion, representing about 20% growth at the midpoint. The company still expects recurrent consumer spending to be in line with fiscal 2026 and accounts for 64% of Net Bookings.

Take-Two reported fiscal first-quarter earnings of 36 cents per share, which beat the Zacks Consensus Estimate of 31 cents. Revenues of $1.39 billion beat the estimate of $1.35 billion.

Take-Two Keeps GTA VI Launch at Center

CEO Strauss Zelnick said confidence in the Nov. 19 release of Grand Theft Auto VI remains high, supported by what management described as an exceptional start to preorders.

Zelnick said the preorder level is unprecedented for Take-Two and the industry, but he declined to translate that demand into unit expectations. He stressed that preorders can be canceled and that no units have yet been sold.

President Karl Slatoff also pointed to continued GTA Online engagement, saying recent content has reactivated players while the company maintains a stable update cadence and significant support for the service.

TTWO Leans on NBA 2K and Recurrent Spending

CEO Strauss Zelnick said NBA 2K26 sold more than 12 million units, up 9% from NBA 2K25. Recurrent consumer spending for the franchise grew 7%, while average daily active users increased 15%.

CFO Lainie Goldstein said companywide recurrent consumer spending declined 1%, better than guidance for a 3% decline, and represented 84% of first-quarter Net Bookings.

For the fiscal second quarter, Goldstein guided Net Bookings to $1.62 billion to $1.67 billion and expects recurrent consumer spending to decline about 5%, with mobile down and NBA 2K and Grand Theft Auto growing.

Take-Two Addresses Mobile and Pricing

A TD Cowen analyst asked about signs of weaker mobile demand. CEO Strauss Zelnick said Take-Two is not seeing consumer pullback, though user acquisition costs face some pressure and Color Block Jam has a tougher year-over-year comparison.

A BMO Capital Markets analyst questioned the decision to price GTA VI at $80 while keeping NBA 2K27 at $70. Zelnick said the company’s objective is to deliver more consumer value rather than maximize price.

Zelnick also said direct-to-consumer distribution remains a growth area in mobile and has had a material positive effect on margins.

TTWO Q&A Tempers Preorder Expectations

A Wells Fargo analyst asked whether strong GTA VI preorders could pull demand forward. CEO Strauss Zelnick acknowledged that outcome while reiterating that management is not raising guidance before the title launches.

A Citi analyst also pressed for a framework linking preorders to eventual sales. Zelnick again declined to provide unit expectations, emphasizing that the unprecedented preorder levels make historical comparisons less useful.

The repeated caution contrasted with management’s strong confidence in the title and reinforced the decision to keep the fiscal 2027 Net Bookings range unchanged.

Take-Two Focuses on Sustaining New Scale

CEO Strauss Zelnick said major releases have historically influenced Take-Two beyond a single quarter, while the company’s pipeline, live services and catalog provide additional growth avenues.

Management also highlighted international expansion, selective accretive M&A and live-service enhancements as priorities for sustaining a higher scale after fiscal 2027.

TTWO Zacks Signals Favorable Rank, Mixed Styles

TTWO carries a Zacks Rank #2 (Buy). Its Value Score is F, while Growth and Momentum Scores are C and the VGM Score is D. Under the Zacks framework, the #2 rank is favorable, while A and B are the stronger Style Score grades. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The combination therefore provides a positive earnings-estimate-revision signal but weaker support from the Style Scores. The Zacks Rank can change as analysts revise estimates following the just-reported results.

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