Take-Two Raises Annual Revenue and Profit Forecasts Ahead of GTA VI Launch

Take-Two Interactive Software (TTWO) raised its fiscal 2027 revenue forecast to $7.98 billion-$8.18 billion and its per-share profit outlook to 57-75 cents on Monday, banking on the Nov. 19 launch of Grand Theft Auto VI after pre-orders exceeded expectations, the company said. Shares were up 8.3% in delayed trading.

The revenue forecast rose from $7.90 billion-$8.10 billion, while the lower end of the per-share profit outlook rose by 2 cents. Take-Two kept its annual bookings forecast at $8 billion-$8.20 billion. Chief Executive Strauss Zelnick said pre-orders for GTA VI were "tracking far in excess of initial expectations," but the company would not raise bookings guidance before seeing actual sales. Zelnick added that the company was days from the GTA VI launch and preferred not to claim success before it occurs, with no need to update bookings numbers now.

Pre-orders and pricing

GTA VI is set to reach players on Nov. 19, about 13 years after its predecessor, Take-Two said. Pre-orders began in June and the title had about 7.71 million digital pre-orders worldwide as of Nov. 3, according to Sensor Tower data cited by Reuters. The standard edition is priced at $79.99 and the Ultimate Edition at $99.99, and nearly 90% of pre-orders were for the higher-end version at the end of August, according to Sensor Tower.

September quarter was soft

For the quarter ended September, total bookings fell 18% to $1.60 billion, missing estimates of $1.67 billion, Take-Two said. Second-quarter earnings were $1.00 a share, above the Zacks consensus of $0.90, while revenue of $1.60 billion missed the $1.66 billion consensus. On a GAAP basis, net revenue fell 16% to $1.497 billion and the company posted a net loss of $54 million, or 29 cents a share. NBA 2K27 sold more than 4 million units but fell below management's expectations.

What is known and what is not

Chief Financial Officer Lainie Goldstein projected third-quarter net bookings of $3.35 billion-$3.5 billion and said recurrent consumer spending would rise about 12%, driven mainly by GTA VI content. Operating cash flow is expected to exceed $1 billion in fiscal 2027. Take-Two did not give fiscal 2028 guidance. The next dated event is the GTA VI launch on Nov. 19.