Video game publisher Take Two (NASDAQ:TTWO) reported Q1 CY2026 results topping the market’s revenue expectations , with sales up 6.2% year on year to $1.68 billion. On the other hand, next quarter’s revenue guidance of $1.48 billion was less impressive, coming in 4.1% below analysts’ estimates. Its GAAP loss of $0.32 per share was 38.2% above analysts’ consensus estimates.
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Take-Two (TTWO) Q1 CY2026 Highlights:
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Revenue: $1.68 billion vs analyst estimates of $1.56 billion (6.2% year-on-year growth, 7.9% beat)
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EPS (GAAP): -$0.32 vs analyst estimates of -$0.52 (38.2% beat)
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Adjusted EBITDA: $243.7 million vs analyst estimates of $189.3 million (14.5% margin, 28.7% beat)
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Revenue Guidance for Q2 CY2026 is $1.48 billion at the midpoint, below analyst estimates of $1.54 billion
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EPS (GAAP) guidance for the upcoming financial year 2027 is $0.65 at the midpoint, missing analyst estimates by 82.7%
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EBITDA guidance for the upcoming financial year 2027 is $1.04 billion at the midpoint, below analyst estimates of $1.95 billion
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Operating Margin: 0.6%, up from -239% in the same quarter last year
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Free Cash Flow Margin: 11.8%, down from 13.4% in the previous quarter
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Market Capitalization: $43.82 billion
Company Overview
Best known for its Grand Theft Auto and NBA 2K franchises, Take Two (NASDAQ:TTWO) is one of the world’s largest video game publishers.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last three years, Take-Two grew its sales at a mediocre 8.9% compounded annual growth rate. This wasn’t a great result compared to the rest of the consumer internet sector, but there are still things to like about Take-Two.
This quarter, Take-Two reported year-on-year revenue growth of 6.2%, and its $1.68 billion of revenue exceeded Wall Street’s estimates by 7.9%. Company management is currently guiding for a 3.6% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 36.5% over the next 12 months, an acceleration versus the last three years. This projection is eye-popping and suggests its newer products and services will fuel better top-line performance.
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