Take-Two Interactive Software (NASDAQ:TTWO) reported first-quarter fiscal 2027 net bookings of approximately $1.39 billion, slightly above its guidance range of $1.32 billion to $1.37 billion, as NBA 2K and the Grand Theft Auto series outperformed expectations.
Chairman and Chief Executive Officer Strauss Zelnick said the company’s fiscal year had begun “an excellent start,” supported by its portfolio of console, PC and mobile franchises. Take-Two reiterated its fiscal 2027 net bookings outlook of $8 billion to $8.2 billion, which would represent roughly 20% growth at the midpoint compared with fiscal 2026.
Financial Results and Outlook
GAAP net revenue increased 2% year over year to $1.5 billion in the quarter ended June 30, 2026. Recurrent consumer spending declined 1%, a better result than the company’s forecast for a 3% decline, and represented 84% of net bookings.
Chief Financial Officer Lainie Goldstein said NBA 2K recurrent consumer spending rose 7% and Grand Theft Auto spending grew 3%, while mobile spending declined 7% as expected. Cost of revenue rose 17% to $651 million and included a $43 million impairment charge related to Take-Two’s decision not to proceed with an unannounced game from a third-party developer. Operating expenses were flat at $918 million.
For the full fiscal year, Take-Two expects recurrent consumer spending to be in line with fiscal 2026 and to account for 64% of net bookings. The company expects operating cash flow to exceed $1 billion and said it remains on track to reach a net cash position by year-end. Capital expenditures are now projected at about $290 million, increased from prior guidance because of a planned real estate purchase.
For the fiscal second quarter, Take-Two forecast net bookings of $1.62 billion to $1.67 billion, compared with $1.96 billion in the prior-year quarter. The forecast includes the September 4 release of NBA 2K27 and content updates across its portfolio.
Grand Theft Auto VI Preorders and GTA Online
Take-Two said consumer anticipation for Grand Theft Auto VI continues to build. Zelnick called preorder activity “exceptional” and said the company had not seen anything comparable “before at Take-Two or in the industry.” However, he cautioned that preorders can be canceled and that the company is not raising guidance before the game launches.
The base version of Grand Theft Auto VI is priced at $80, while Take-Two is also offering a higher-priced deluxe edition. Zelnick said the company’s goal is not to maximize pricing but to provide consumers with more value than they pay for. NBA 2K27’s base price remains $70.
Rockstar Games plans to provide an extended look at Grand Theft Auto VI on August 27 through a timed Netflix arrangement. Zelnick described the initiative as a first-of-its-kind partnership and said the footage will become available six hours later through Rockstar Games’ YouTube channel and potentially other outlets.
The existing Grand Theft Auto franchise continued to exceed the company’s expectations. Grand Theft Auto V has now sold more than 230 million units worldwide, according to Take-Two. Rockstar also released The Kortz Center Heist for GTA Online on July 14. President Karl Slatoff said the update had been well received and that such releases typically reactivate players, though the company did not disclose specific performance data.
NBA 2K and Mobile Portfolio
NBA 2K26 concluded what management called a record year for the franchise. The game has sold more than 12 million units to date, up 9% from NBA 2K25. During the quarter, average daily active users rose 15%, MyCAREER daily active users increased 25%, and average games played per user climbed 35%.
NBA 2K27 will feature San Antonio Spurs player Victor Wembanyama on the standard-edition cover, Indiana Fever player Caitlin Clark on the deluxe edition and former Chicago Bulls player Derrick Rose on the ultra edition. Take-Two plans a further game reveal on August 18.
In mobile, Zynga performed in line with Take-Two’s expectations. Toon Blast net bookings increased 8%, Words with Friends bookings rose 8%, and Top Eleven bookings grew 15%. The company said its China-based NBA 2K All-Star title, developed with Tencent, surpassed 10 million registered users since its launch last year and is generating strong profit margins.
Zelnick said Take-Two has not seen signs of a consumer pullback in mobile gaming. He attributed the company’s year-over-year mobile comparison largely to Color Block Jam, which was a new title in the previous year. He acknowledged pressure in user-acquisition spending but said engagement remained solid across titles including Toon Blast, Match Factory!, Words with Friends and Empires & Puzzles.
International Expansion, Technology and Distribution
Management identified international expansion as a strategic priority, particularly in underrepresented markets such as India, Africa, Latin America, the Middle East and parts of Asia. Zelnick said Take-Two has developed an in-house geographic pricing tool to experiment with pricing tailored to local purchasing power.
He said the company’s long-term aim is to shift the balance of revenue more toward international markets through overall business growth. Take-Two currently derives about 80% of its revenue from the U.S., Western Europe and one or two Asian countries, according to Zelnick.
On artificial intelligence, Zelnick said Take-Two is pursuing both research and applied projects intended to support innovation and efficiency. However, he said the company views technology as a tool to enhance creative work rather than replace its workforce.
Take-Two also continues to expand direct-to-consumer payments across its mobile portfolio. Zelnick said the channel is growing and has had a material positive effect on mobile margins. Advertising is also becoming a larger part of the mobile business, with ad units now deployed across most, but not all, of the company’s mobile titles.
About Take-Two Interactive Software (NASDAQ:TTWO)
Take-Two Interactive Software is an American video game publisher headquartered in New York City. Founded in 1993 by Ryan Brant, the company is publicly traded on the NASDAQ under the ticker TTWO and is led by Chairman and CEO Strauss Zelnick. Take-Two operates through distinct publishing labels that manage development, marketing and distribution of interactive entertainment for a global audience.
Take-Two’s publishing portfolio includes Rockstar Games and 2K, as well as the Private Division label, which supports independent and mid-size developers.
