Take-Two outlines $6.4B–$6.5B net bookings target for 2026 as GTA VI launch moves to November 2026

Earnings Call Insights: Take-Two Interactive Software (TTWO) Q2 2026

MANAGEMENT VIEW

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Strauss Zelnick, Executive Chairman & CEO, highlighted record-breaking net bookings for the quarter: "We delivered fantastic second quarter results, including net bookings of $1.96 billion, which vastly exceeded our expectations and represent the best second quarter of net bookings in our company's history." Zelnick also announced an increase in full-year net bookings outlook to $6.4 billion to $6.5 billion, citing strong performance across multiple franchises and optimism for the fiscal year.

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Zelnick revealed that Rockstar Games has set the release date for Grand Theft Auto VI to November 19, 2026, stating, "Rockstar Games has announced that Grand Theft Auto VI will now be released on November 19, 2026, giving the team some additional time to finish the game with a high level of polish players expect and deserve."

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NBA 2K26, launched by 2K during the quarter, set records in sales and engagement, with over 5 million units sold to date and a double-digit increase over NBA 2K25. Zelnick noted, "We were pleased to see daily active users and MyCAREER daily active Users grow nearly 30% and nearly 40%, respectively, which contributed to recurrent consumer spending growth of 45%."

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On the mobile front, multiple titles including Toon Blast and Match Factory! achieved year-over-year growth, with Rollic's Color Block Jam remaining the studio's highest grossing title. The CSR franchise surpassed $1 billion in lifetime in-game spending.

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Karl Slatoff, President, emphasized pipeline strength and upcoming releases: "Looking ahead, we believe strongly in our long-term pipeline, which includes the release of Grand Theft Auto VI on November 19, 2026, as well as the future launches of Judas, Project ETHOS, CSR 3, Top Goal, the next BioShock and many other exciting new titles from across our labels."

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Lainie Goldstein, Chief Financial Officer, stated, "Our second quarter results were truly fantastic. We are excited to raise our annual net bookings outlook for the second consecutive quarter." Goldstein cited NBA 2K, Mafia: The Old Country, and several mobile titles as key drivers of outperformance.

OUTLOOK

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Goldstein raised the full-year net bookings outlook to $6.4 billion to $6.5 billion, representing 14% growth over the prior year at the midpoint. Projections for recurrent consumer spending were revised to 11% growth, more than double the prior forecast, with NBA 2K expected to grow in the mid-20% range and mobile around 10%.

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Third quarter net bookings are projected at $1.55 billion to $1.6 billion, with recurrent consumer spending expected to increase by approximately 8%.

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Goldstein indicated, "We are raising our operating cash flow forecast to approximately $250 million, reflecting the strength in our business."

FINANCIAL RESULTS

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Second quarter net bookings of $1.96 billion were significantly above the guidance range of $1.7 billion to $1.75 billion. GAAP net revenue increased 31% to $1.77 billion. Cost of revenue rose 27% to $793 million, and operating expenses increased 5% to $1.1 billion.

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Recurrent consumer spending rose 20%, accounting for 73% of net bookings. NBA 2K grew 45%, and mobile grew mid-teens.

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The revised full-year GAAP net revenue forecast is $6.38 billion to $6.48 billion, and cost of revenue is projected at $2.66 billion to $2.69 billion. Operating expenses are expected to range from $3.98 billion to $4 billion.

Q&A

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Colin Sebastian, Robert W. Baird & Co.: Asked about the strength in recurrent consumer spending and the impact of the GTA VI release date change. Zelnick responded there would be no change in the support for GTA Online and cited continued engagement, stating, "GTA+ was up 20% year-over-year in the quarter, which is just great news. So -- and Grand Theft Auto V has now sold in 220 million units."

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Douglas Creutz, TD Cowen: Asked about the implications of Take-Two being the last large stand-alone publisher. Zelnick replied, "We're always running scared around here. I'm fond of saying arrogance is the enemy of continued success."

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Christopher Schoell, UBS: Inquired about alternate payment mechanisms in mobile portfolio. Zelnick explained, "Our direct-to-consumer business is doing really well. It has been rolled out almost across our entire mobile portfolio...the most recent litigation result definitely puts us in a stronger position."

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Andrew Marok, Raymond James: Asked about NBA 2K's audience growth and Borderlands 4's launch. Slatoff described room for further engagement, while Zelnick addressed launch challenges for Borderlands 4, saying, "Gearbox has been addressing the PC challenges. In the fullness of time, we think the unit sales on this title will be very solid."

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Additional analyst questions covered mobile outperformance, AI applications, BioShock leadership, ad revenue drivers, and mobile margin improvements, with management attributing gains to leadership, efficiency, and disciplined execution.

SENTIMENT ANALYSIS

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Analysts expressed slight positivity, focusing questions on execution, growth sustainability, and the impact of strategic shifts. They raised topics such as mobile momentum, game launches, and margin expansion with a tone of cautious optimism.

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Management maintained a confident and upbeat tone, especially in prepared remarks. Zelnick repeatedly emphasized quality, leadership, and execution, and addressed delays and operational challenges without defensiveness.

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Compared to the previous quarter, both management and analysts displayed increased confidence, with more upbeat language and forward-looking statements about growth and profitability.

QUARTER-OVER-QUARTER COMPARISON

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Guidance for net bookings was raised from $6.05–$6.15 billion in Q1 to $6.4–$6.5 billion in Q2. Recurrent consumer spending growth was revised up from 4% to 11%.

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Management tone shifted from cautious optimism in Q1 to a more assertive, positive outlook in Q2, emphasizing record-breaking results and a stronger release pipeline.

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Analyst focus remained consistent on mobile growth and monetization, but questions in Q2 increasingly addressed the implications of operational leverage, margin expansion, and the GTA VI launch timeline.

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The announcement of BioShock leadership changes and further clarity on the GTA VI timeline marked new strategic updates.

RISKS AND CONCERNS

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Management acknowledged challenges with Borderlands 4's PC optimization at launch and noted ongoing updates to address performance.

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Zelnick reiterated the importance of quality and indicated there are always risks in delivering hit titles but emphasized learning from past issues.

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Analysts probed the impact of release delays and potential macroeconomic headwinds, but management maintained that demand for quality content and strategic discipline would help mitigate risks.

FINAL TAKEAWAY

Take-Two management highlighted another record-breaking quarter, driven by strong performance in core franchises, robust growth in mobile, and increased recurrent consumer spending. The company raised its annual outlook for net bookings and cash flow, outlined major releases including GTA VI for November 2026, and pointed to operational leverage and efficiency gains as key drivers of profitability. Strategic clarity, successful product launches, and leadership updates position Take-Two for continued growth and enhanced shareholder returns in the coming periods.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/ttwo/earnings/transcripts]

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