Take-Two Interactive
TTWO
$215.47
-0.69%
Take-Two Interactive Software Inc. is a leading global developer and publisher of video games, operating through renowned labels such as Rockstar Games, 2K, and Zynga. The company is distinguished by its portfolio of iconic franchises, including Grand Theft Auto, NBA 2K, Red Dead Redemption, and Civilization, which have established it as a dominant force in the interactive entertainment industry. Currently, the investor narrative centers on the highly anticipated release of Grand Theft Auto VI, with preorder announcements in June 2026 alleviating delay concerns and driving a 5% stock surge, while the broader industry faces margin pressures from rising memory costs and the ongoing shift toward digital distribution.…
TTWO
Take-Two Interactive
$215.47
Related headlines
Investment Opinion: Should I buy TTWO Today?
Based on the synthesis of technical, fundamental, and analyst data, TTWO is rated a Buy. The consensus recommendation is Strong Buy, with an average target price of $286.89, implying a 33.6% upside. The thesis is that GTA VI, the most anticipated game in history, will drive a massive revenue and earnings inflection in FY2027, justifying the current valuation and propelling the stock higher.
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TTWO 12-Month Price Forecast
The AI assessment is bullish with medium confidence. The primary driver is the impending GTA VI launch, which is expected to transform TTWO's financials from losses to substantial profits. The market has already priced in a significant recovery, as evidenced by the forward PE, but the consensus rating and target upside suggest further appreciation is likely. However, the medium confidence reflects the execution risk and the stock's recent underperformance. If GTA VI preorders or early sales data exceed expectations, the stance would be upgraded to high confidence. Conversely, any delay or negative news would quickly shift the stance to neutral or bearish.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Take-Two Interactive's 12-month outlook, with a consensus price target around $286.44 and implied upside of +32.9% versus the current price.
Average Target
$286.44
0 analysts
Implied Upside
+32.9%
vs. current price
Analyst Count
—
covering this stock
Price Range
$170 - $368
Analyst target range
The target price range spans from a low of $170.00 to a high of $368.00, indicating a wide dispersion of expectations. The high target of $368 suggests that some analysts anticipate a massive success for GTA VI, potentially driving significant revenue and earnings growth, while the low target of $170 implies concerns about execution risks or a potential delay. Recent institutional actions have been uniformly positive, with firms like Wells Fargo, BTIG, and BMO Capital reaffirming or maintaining Buy/Overweight ratings, and no downgrades in the past three months, signaling strong conviction in the stock's upside potential.
Bulls vs Bears: TTWO Investment Factors
TTWO presents a classic high-risk, high-reward scenario. The bull case hinges on GTA VI becoming a monumental success, driving a massive earnings inflection that justifies the current valuation and propels the stock toward the $368 high target. The bear case centers on persistent GAAP losses, a rich valuation with no current earnings, and the risk of delays or underperformance, which could send the stock toward the $170 low target. Currently, the evidence slightly favors the bulls given the strong analyst conviction, the confirmed preorder timeline, and the company's iconic franchise portfolio. The single most important tension is whether GTA VI will launch on time and meet sky-high expectations, as this single factor will determine whether TTWO re-rates upward to growth-stock multiples or suffers a de-rating to reflect its current lack of profitability.
Bullish
- GTA VI Preorders Alleviate Delay Fears: The June 2026 preorder announcement for Grand Theft Auto VI reassured investors about the game's timeline, driving a 5% stock surge. This confirms the title is on track for its expected launch, which is the primary catalyst for a major earnings inflection.
- Strong Analyst Conviction and Upside: With 29 analysts covering TTWO, the consensus rating is Strong Buy (mean 1.21), and the average target price of $286.89 implies a 33.6% upside from the current price of $214.69. No downgrades have occurred in the past three months, with firms like Wells Fargo and BMO reaffirming Buy ratings.
- Diversified Revenue Streams: In Q4 FY2026, revenue was well-diversified: mobile contributed $843.9M (50%), console $674.6M (40%), and PC/other $161.3M (10%). This reduces reliance on any single franchise or platform, with Zynga's mobile segment providing a stable base.
- Healthy Gross Margin Above 55%: TTWO's gross margin was 57.2% (TTM) and 55.9% in Q4 FY2026, reflecting strong pricing power and a shift toward high-margin digital and in-game sales. This provides a solid foundation for profitability once revenue scales with GTA VI.
Bearish
- Persistent GAAP Losses and Negative Margins: TTWO reported a net loss of $59.5M in Q4 FY2026 and a TTM EPS of -$0.008, with a net margin of -4.5%. The company has been unprofitable on a GAAP basis for several quarters, with operating margin at -1.6%, indicating ongoing cost pressures.
- Stock Underperforming Market Significantly: TTWO is down 10.79% over the past year and 14.67% YTD, while the S&P 500 gained 18.65% and 12.94%, respectively. Relative strength is deeply negative (-29.4% over 1 year), showing persistent selling pressure and investor skepticism.
- High Valuation with No Current Earnings: With a PS ratio of 5.50x and a forward PE of 20.84x, the stock is priced for a massive earnings recovery. Any delay or underperformance of GTA VI could lead to multiple compression, as the trailing PE is negative (-121.9x).
- Rising Memory Costs Squeeze Margins: An AI-fueled memory shortage is increasing costs for gaming hardware and development, directly pressuring margins across the industry. This could delay console cycles and increase production costs for physical and digital content.
TTWO Technical Analysis
Take-Two's stock is currently in a downtrend, having declined 10.79% over the past year, significantly underperforming the S&P 500's 18.65% gain. The current price of $214.69 sits at 45.6% of its 52-week range (between $187.63 low and $265.94 high), indicating a position closer to the lower end of its yearly range, which often suggests either a value opportunity or persistent selling pressure. The stock has fallen 14.67% year-to-date, reflecting a challenging market environment for the company despite its strong franchise pipeline.
Beta
0.97
0.97x market volatility
Max Drawdown
-27.7%
Largest decline past year
52-Week Range
$188-$266
Price range past year
Annual Return
-12.6%
Cumulative gain past year
| Period | TTWO Return | S&P 500 |
|---|---|---|
| 1m | -11.3% | -1.1% |
| 3m | +1.8% | +3.0% |
| 6m | +3.3% | +15.4% |
| 1y | -12.6% | +16.2% |
| ytd | -14.4% | +12.1% |
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TTWO Fundamental Analysis
Take-Two's revenue trajectory shows modest growth, with the most recent quarter (Q4 FY2026, ending March 31, 2026) reporting revenue of $1.68 billion, a 6.15% increase year-over-year. However, sequential quarterly revenue has been volatile, declining from $1.77 billion in Q2 FY2026 to $1.68 billion in Q4, indicating a deceleration in the near term. The company's revenue is diversified across segments, with mobile contributing $843.9 million, console $674.6 million, and PC and other products $161.3 million in the latest quarter, highlighting the importance of mobile (Zynga) and console (GTA, NBA 2K) as key growth drivers.
Quarterly Revenue
$1.7B
2026-03
Revenue YoY Growth
+6.2%
YoY Comparison
Gross Margin
55.9%
Latest Quarter
Free Cash Flow
$450100000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is TTWO Overvalued?
Given that Take-Two's trailing twelve-month net income is negative (EPS of -$0.008), the price-to-sales (PS) ratio is the most appropriate valuation metric, as earnings-based multiples are not meaningful. The current PS ratio stands at 5.50x, while the forward PE is 20.84x, implying that the market expects a significant earnings recovery, likely driven by the launch of GTA VI. The gap between the negative trailing PE and positive forward PE underscores the market's anticipation of a major profit inflection in the coming years.
PE
-121.9x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 34x~40x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
30.6x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks are substantial. TTWO has a debt-to-equity ratio of 0.84, indicating moderate leverage, and its current ratio of 1.24 suggests adequate but not ample liquidity. The company has posted GAAP net losses for eight consecutive quarters, with a TTM net margin of -4.5% and an operating margin of -1.6%. Free cash flow of $450M is positive but modest relative to a $36.6B market cap, implying a FCF yield of just 1.2%. The negative trailing EPS (-$0.008) makes traditional earnings-based valuation impossible, forcing reliance on forward estimates that assume a dramatic profit recovery. If GTA VI revenue falls short, the company could face prolonged losses, and its high fixed cost base (R&D and marketing expenses exceed $1B annually) would amplify the impact.