TTWO Q3 2026 Earnings

Call Details

• Call Title: Take-Two Interactive Q3 2026 Earnings Call
• Date: February 3, 2026 at 9:30 PM UTC
• Management Team:
  • Strauss Zelnick (Chief Executive Officer)
  • Karl Slatoff (President)
  • Lainie Goldstein (Chief Financial Officer)

Call Summary

Financial Performance

• Company reported net bookings of $1.76B for the third quarter, which materially exceeded the high end of its prior guidance range of $1.55B-$1.6B.
• GAAP net revenue increased 25% to $1.7B for the quarter.
• Cost of revenue increased 26% to $754M for the quarter.
• Operating expenses increased 10% to $984M on a reported basis, and rose 13% year-over-year on a management basis.
• Recurrent consumer spending (RCS) rose 23% for the period and accounted for 76% of net bookings for the quarter.
• Mobile net bookings increased 19% year-over-year for the quarter, driven by titles with multi-year engagement performance.
• NBA 2K26 sold approximately 8 million units year-to-date, representing a high single-digit percentage increase versus NBA 2K25.
• Grand Theft Auto consumer spending grew 27% year-over-year for the period, while GTA V lifetime unit sales exceeded 225 million units.

Guidance

• Full fiscal year net bookings guidance was raised to $6.65B-$6.7B, representing 18% growth at the midpoint versus fiscal 2025.
• Company now expects current consumer spending to grow approximately 17% and to represent 78% of net bookings for the fiscal year, up from a prior forecast of 11%.
• Revised recurrent consumer spending assumptions include NBA 2K growth of approximately 37%, mobile growth of approximately 13%, and Grand Theft Auto Online increasing slightly versus prior forecasts.
• Label mix is projected at roughly 46% Zynga, 38% 2K, and 16% Rockstar for net bookings in the fiscal year.
• Operating cash flow guidance was increased to approximately $450M from a prior expectation of $250M.
• GAAP net revenue guidance was updated to $6.55B-$6.6B and cost of revenue guidance was updated to $2.78B-$2.8B for the fiscal year.
• Total operating expenses are expected to range from $3.96B-$3.97B for the fiscal year, and management-basis operating expense growth is now expected to be approximately 8% year-over-year.
• Fourth quarter net bookings are projected at $1.51B-$1.56B versus $1.58B in the prior-year quarter, with fourth quarter RCS expected to increase approximately 7%.