Shares of Take-Two Interactive Software, Inc. (NASDAQ: TTWO) plunged 9% on Friday. The stock has dropped 15% in the past three months. The gaming company is set to report its earnings results for the third quarter of 2026 on Tuesday, February 3, after the market closes. Here’s a look at what to expect from the earnings report:
Revenue
Take-Two has guided for net revenues of $1.57-1.62 billion for the third quarter of 2026. This compares to net revenues of $1.36 billion reported in the third quarter of 2025. In the second quarter of 2026, net revenue increased 31% year-over-year to $1.77 billion.
TTWO expects net bookings to be $1.55-1.60 billion in Q3 2026. Analysts are estimating $1.58 billion, which indicates an increase of around 15% from the same period a year ago. In Q2 2026, net bookings grew 33% YoY to $1.96 billion.
Earnings
Take-Two has guided for net loss of $0.49-0.35 per share in Q3 2026. Analysts are predicting a loss of $0.39 per share. This compares to a loss of $0.71 per share reported in Q3 2025. In Q2 2026, net loss per share amounted to $0.73.
Points to note
Along with continued strength in its core franchises, Take-Two is expected to benefit from the strong performances of its new releases, such as NBA 2K26, Borderlands 4, and Mafia: The Old Country in the third quarter. On its last earnings call, the company said that NBA 2K26 has been “delivering an unprecedented level of in-game spending”. It also saw substantial outperformance in its mobile business.
In Q2, recurrent consumer spending increased 18%, with the largest contributions coming from the core franchises and new releases. Engagement levels for these titles remain robust. Within the mobile business, franchises like Toon Blast and Match Factory continue to see strong growth. The company plans to boost its new releases with new content and updates as well as enhance its live services portfolio with new features and innovation. These efforts will help drive engagement and monetization.
TTWO expects the largest contributors to net bookings in Q3 to be NBA 2K, the Grand Theft Auto series, Toon Blast, Match Factory, the Red Dead Redemption series, Color Block Jam, Empires & Puzzles, Borderlands 4, and Words with Friends. Recurrent consumer spending is projected to increase by approx. 8%, assuming low double-digit growth in mobile, a mid-single-digit increase for NBA 2K, and a decline for Grand Theft Auto Online.
Operating expenses in the third quarter are expected to range between $980-990 million. Opex is expected to grow approx. 12% YoY, mainly due to incremental user acquisition investments to support the strong performance in the mobile portfolio and higher performance-based compensation.
Take-Two’s stock took a dive on Friday after Google launched Project Genie, an AI-powered tool that lets users build virtual worlds. The launch of Genie has raised concerns over the increase of competition in the interactive content creation space.
