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Take-Two Gears Up to Report Q3 Earnings: How to Play the Stock

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Key Takeaways

  • Take-Two is set to report fiscal Q3 results on Feb. 3, guiding GAAP net revenues of $1.57B-$1.62B.
  • TTWO faces pressure after Borderlands 4's Nintendo Switch 2 launch was delayed indefinitely in September.
  • NBA 2K26 and GTA Online were expected to drive holiday engagement in a seasonally strong quarter for gaming.

Take-Two Interactive Software (TTWO - Free Report) is scheduled to release third-quarter fiscal 2026 results on Feb. 3.

For the third quarter of fiscal 2026, Take-Two expects GAAP net revenues between $1.57 billion and $1.62 billion. It expects a loss per share between 49 cents and 35 cents.

The Zacks Consensus Estimate for TTWO’s fiscal third-quarter revenues is pegged at $1.59 billion, indicating growth of 15.57% on a year-over-year basis.

The consensus mark for earnings is pegged at 83 cents per share, which has been unchanged over the past 30 days, indicating an improvement of 15.28% from the year-ago quarter.

TTWO beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with an average surprise of 53.41%.

Let us see how things have shaped up for the upcoming announcement.

Key Factors to Consider for TTWO

The quarter is likely to have reflected seasonal tailwinds from the holiday shopping season, though the company faced operational challenges during this critical period.

The quarter is likely to have experienced continued softness from Borderlands 4, which management had acknowledged faced challenges in its initial console launch during the prior quarter. Additionally, the planned Oct. 3 launch of Borderlands 4 on Nintendo Switch 2 was delayed indefinitely on Sept. 23, potentially impacting the franchise's holiday season performance and overall bookings expectations. The delay announcement cited the need for additional development and polish time, along with plans to better align the release with cross-save functionality.

NBA 2K26, which launched on Sept. 5, 2025, is likely to have sustained strong engagement through the holiday season, historically a peak period for sports gaming. Management had highlighted NBA 2K's outperformance in the second quarter, with the franchise typically seeing strengthened recurrent consumer spending patterns during the winter months as the NBA season progresses. The mobile portfolio, including titles like Toon Blast, Match Factory, and Color Block Jam, was expected to have contributed steady bookings, though management had previously noted some softness in legacy mobile titles.

The October-December period represents a seasonally strong quarter for gaming companies, driven by holiday gifting and promotional activity. Grand Theft Auto Online and Grand Theft Auto V are likely to have continued their consistent performance, benefiting from seasonal engagement spikes and in-game events. Red Dead Redemption 2 and Red Dead Online were also expected to have contributed to recurrent consumer spending.

Management provided guidance for Net Bookings of $1.55 billion to $1.60 billion for the quarter. With the raised full-year fiscal 2026 outlook of $6.4 billion to $6.5 billion in Net Bookings already reflecting fiscal second-quarter outperformance, the upcoming results will provide insights into whether Take-Two maintained momentum despite the Borderlands 4 Switch 2 delay, as the company positions itself before the highly anticipated Grand Theft Auto VI launch on Nov. 19, 2026.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the exact case here.

TTWO has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks in the Zacks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Cirrus Logic (CRUS - Free Report) currently has an Earnings ESP of +5.89% and sports a Zacks Rank #1. CRUS shares have gained 31.6% in the in the trailing 12 months. It is set to report its third-quarter fiscal 2026 results on Feb. 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Advanced Micro Devices (AMD - Free Report) has an Earnings ESP of +2.01% and a Zacks Rank #2 at present. AMD shares have surged 112.6% in the trailing 12 months. AMD is set to report its fourth-quarter 2025 results on Feb. 3.

Rockwell Automation (ROK - Free Report) presently has an Earnings ESP of +1.03% and a Zacks Rank #2. ROK shares have soared 48.7% in the trailing 12 months. ROK is set to report its first-quarter fiscal 2026 results on Feb. 5.

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