Shares of Take-Two Interactive Software, Inc. (NASDAQ: TTWO) were down 5% on Wednesday. The company delivered higher revenue and net bookings for the third quarter of 2026, which also surpassed estimates. Net loss per share narrowed versus the previous year but fell short of expectations. TTWO raised its outlook for the full year of 2026 based on its strong top line performance.
Mixed Q3 results
Take-Two’s net revenue increased 25% year-over-year to $1.70 billion in the third quarter of 2026. Net bookings grew 28% to $1.76 billion. Net loss per share was $0.50 versus $0.71 in the prior-year period. Analysts had estimated a loss of $0.39 per share on revenue of $1.58 billion.
Mobile momentum
Take-Two benefited from significant momentum in its mobile business during the third quarter. Titles like Toon Blast, Match Factory!, Empires & Puzzles, Color Block Jam, Words With Friends, and Toy Blast were substantial contributors to total net bookings. Overall mobile net bookings grew 19% YoY. Toon Blast’s bookings rose 43% while Match Factory saw a growth of around 17%. Empires and Puzzles and Words with Friends grew bookings by 11% and 6%, respectively.
User growth and engagement levels remain strong. In addition, advertising revenue grew 10% YoY, driven by higher average revenue per daily active user. The company is also seeing meaningful traction in the direct-to-consumer business as it continues to improve offers, pricing, and payment methods. The direct-to-consumer business is expected to be an important growth driver for the company.
Franchise strength
Take-Two saw strong performances from its core franchises as well in Q3. NBA 2K26, Grand Theft Auto, Red Dead Redemption, and WWE 2K25 contributed significantly to net bookings. NBA 2K26 saw recurrent consumer spending and daily active users both grow 30% YoY. To-date, the title has sold approx. 8 million units. On its quarterly call, the company said it believes there is significant expansion opportunity for NBA 2K in both North America and international markets.
The Grand Theft Auto series saw recurrent consumer spending growth of 27% in Q3, led by new updates. TTWO also launched Red Dead Redemption onto new platforms during the quarter. Engagement levels remain strong for these titles and the company expects to see an increase in recurrent consumer spending for GTA in fiscal year 2026.
Raised outlook
Based on its strong performance, Take-Two raised its outlook for fiscal year 2026. The company now expects net bookings to range between $6.65-6.70 billion, which represents a YoY growth of 18%. Net revenue for the year is expected to be $6.55-6.60 billion while net loss per share is expected to be $2.00-1.84.
For the fourth quarter of 2026, TTWO forecasts net bookings of $1.51-1.56 billion, net revenue of $1.57-1.62 billion, and net loss per share of $0.70-0.54.
