Take-Two Interactive Software, Inc. (TTWO) AI Stock Analysis

Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions worldwide across console gaming systems, PC, and mobile devices. Founded in 1993 and based in New York, the company operates via labels including Rockstar Games, 2K, Private Division, and T2 Mobile Games. Its portfolio includes action and adventure franchises like Grand Theft Auto, Red Dead Redemption, Max Payne, and Midnight Club, as well as series such as BioShock, Mafia, Sid Meier's Civilization, XCOM, and Borderlands. The company also publishes sports simulations including NBA 2K, WWE 2K, and PGA TOUR 2K, utilizing both physical retail and digital download distribution.

Take-Two expanded revenue at a 5-year CAGR of 14.6% from FY2021 to FY2026. Annual revenue grew from $3.50B in FY2022 to $5.35B in FY2023, remained flat at $5.35B in FY2024, reached $5.63B in FY2025, and increased 18.2% to $6.66B in FY2026. Profitability fluctuated significantly, moving from net income of $418.0M in FY2022 to net losses of -$1.12B in FY2023, -$3.74B in FY2024, -$4.48B in FY2025, and -$298.2M in FY2026. Gross margin stood at 57.2% in FY2026, while R&D expense reached $1.07B. In the latest quarter ended June 30, 2026, quarterly revenue growth was 2.0% year-over-year, while quarterly earnings declined 49.7%.

As of June 30, 2026, Take-Two held $1.83B in cash and short-term investments against total debt of $2.94B, resulting in net debt of $1.12B and a debt-to-equity ratio of 0.82. Total assets stood at $9.06B, shareholders' equity was $3.61B, and the current ratio was 1.06. In FY2026, operating cash flow recovered to $624.3M and free cash flow turned positive at $461.5M after capital expenditures of $162.8M. Over 5 years, the company's share count increased 59.6%.

At a last close of $205.28 on October 16, 2026, Take-Two has a market cap of $38.38B and an enterprise value of $39.55B. The stock trades at a forward P/E of 28.2x and an EV-to-EBITDA of 31.6x, both higher than the median of its Nasdaq-100 Communication Services peers at 20.2x and 12.5x, respectively. However, its price-to-sales of 5.7x sits below the peer median of 8.6x. Over the past 1 year, the stock fell 20.8%, trailing the S&P 500 (SPY) return of 16.8%, and its 5-year return of 20.4% lagged the index's 83.0% gain.

Wall Street coverage consists of 25 Strong Buy, 3 Buy, 0 Hold, 1 Sell, and 0 Strong Sell ratings. The mean price target is $286.44, representing a 39.5% premium to the last close of $205.28. Take-Two beat EPS expectations in 3 of the last 4 quarters. For the fiscal year ending March 31, 2027, consensus estimates project revenue of $8.51B and EPS of $1.84. The company's next earnings date is November 9, 2026.

This page is an AI-written research summary of Take-Two Interactive Software, Inc. (TTWO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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