TTWO AI Stock Analysis – Buy, Hold, or Avoid?
Take-Two Interactive Software, Inc. (TTWO)
Fundamentals
Take-Two Interactive (TTWO) is undergoing a significant financial recovery after a period of losses, with recent quarters showing a return to profitability and earnings beats. The company's revenue growth remains stable, supported by strong franchise titles and digital sales, although margin pressures and elevated expenses have constrained overall profitability. Investors should weigh the improving earnings momentum against valuation premium and execution risks amid competitive industry dynamics.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
6.15% YoY
Q1 2026
Net Income
98.40% YoY
Q1 2026
Net Margin
Q1 2026
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q1 2026
Net Income Growth YoY
Latest Quarter: Q1 2026
Revenue Per Share Growth YoY
Latest Quarter: Q1 2026
EPS Growth YoY
Latest Quarter: Q1 2026
Book Value Per Share Growth YoY
Latest Quarter: Q1 2026
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.7B | 1.7B | 1.8B | 1.5B | 1.6B | 1.4B | 1.4B | 1.3B |
| Revenue Growth YoY | +6.15% | +24.94% | +31.09% | +12.37% | +13.08% | -0.48% | +4.15% | +4.16% |
| Net Income | -59.5M | -92.9M | -133.9M | -11.9M | -3.7B | -125.2M | -365.5M | -262.0M |
| Net Income Growth YoY | +98.40% | +25.80% | +63.37% | +95.46% | -28.36% | -36.68% | +32.76% | -27.18% |
| EPS | -$0.32 | -$0.50 | -$0.73 | -$0.07 | -$21.08 | -$0.71 | -$2.08 | -$1.52 |
| EPS Growth YoY | +98.48% | +29.58% | +64.90% | +95.67% | -23.85% | -31.48% | +35.00% | -24.59% |
Profitability Metrics
Technical Analysis
TTWO is currently in a neutral, range-bound phase with no strong directional trend. The stock is in a topping phase, exhibiting signs of distribution and increased volatility. Moving averages suggest mixed signals with the 50 SMA slightly above the 200 SMA, but price below the 50 SMA, indicating some near-term weakness.
No extreme reading
Price in uptrend
Range-bound market
50 above 200 - bullish
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
Take-Two Interactive (TTWO) is undergoing a significant financial recovery after a period of losses, with recent quarters showing a return to profitability and earnings beats. The company's revenue growth remains stable, supported by strong franchise titles and digital sales, although margin pressures and elevated expenses have constrained overall profitability. Investors should weigh the improving earnings momentum against valuation premium and execution risks amid competitive industry dynamics.
Latest Earnings
Q1 2026 Earnings (Mar 31, 2026)
Earnings Per Share (EPS)
Actual
$0.80
Estimated
$0.56
Surprise
+$0.24
Surprise %
+42.10%
Revenue
Actual
$1.58B
Estimated
$1.55B
Surprise
+$33.4M
Surprise %
+2.16%
Historical Earnings
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $0.80 | $1.23 | $1.46 | $0.61 | $1.09 | $0.72 | $0.66 | $0.05 |
| EPS (Estimated) | $0.56 | $0.83 | $0.94 | $0.28 | $1.10 | $0.64 | $0.42 | $0.01 |
| EPS Surprise | +$0.24 | +$0.40 | +$0.52 | +$0.33 | -$0.01 | +$0.08 | +$0.24 | +$0.04 |
| % Diff | +42.1% | +47.7% | +55.5% | +115.9% | -0.9% | +12.5% | +59.0% | +314.9% |
| Revenue | ||||||||
| Revenue (Actual) | $1.58B | $1.76B | $1.77B | $1.5B | $1.58B | $1.36B | $1.35B | $1.34B |
| Revenue (Estimated) | $1.55B | $1.58B | $1.73B | $1.31B | $1.55B | $1.39B | $1.45B | $1.26B |
| Revenue Surprise | +$33.4M | +$173.16M | +$45.26M | +$191.97M | +$31.69M | -$26.54M | -$94.8M | +$81.07M |
| % Diff | +2.2% | +10.9% | +2.6% | +14.6% | +2.0% | -1.9% | -6.5% | +6.4% |
Valuation
Take-Two Interactive (TTWO) currently trades at a premium valuation relative to its industry and peers, driven by anticipation around key game releases like GTA VI and strong revenue growth. Despite its elevated multiples, cautious market sentiment and mixed technical signals reflect underlying risks tied to profitability and execution.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | -154.30 | -128.01 | -88.48 | -922.68 | -2.46 | -64.82 | -18.47 | -25.38 |
| Price to Sales | 21.79 | 27.64 | 26.89 | 29.20 | 23.15 | 23.83 | 19.93 | 19.87 |
| Price to Book | 10.42 | 13.43 | 13.90 | 12.61 | 17.14 | 5.68 | 4.65 | 4.44 |
| Enterprise Value to EBITDA | 97.94 | 180.58 | 187.52 | 172.25 | -11.86 | 253.92 | -2057.90 | 174.10 |
| Enterprise Value to Revenue | 22.63 | 28.64 | 27.81 | 30.18 | 24.83 | 25.96 | 22.05 | 21.91 |
Sentiment & Analyst Ratings
Take-Two Interactive (TTWO) enjoys a broadly positive market sentiment driven by strong anticipation for the upcoming launch of Grand Theft Auto VI in November 2026. Analysts overwhelmingly recommend buying the stock, supported by robust growth forecasts and strong recurrent consumer spending, despite some cautiousness around near-term earnings fluctuations. Investor enthusiasm is buoyed by consistent revenue beats and upbeat price targets, signaling confidence in TTWO's long-term growth potential.
Analyst Recommendations
Risk Assessment
Take-Two Interactive (TTWO) exhibits a moderately stable financial profile with improving liquidity and a manageable debt load, underpinned by robust earnings growth expectations centered on the upcoming Grand Theft Auto VI launch. The company's business risks revolve around execution on major releases, high development costs, and competitive pressures in the gaming sector, balanced by strong analyst sentiment predicting significant near-to-mid term upside. However, elevated valuation and execution risks suggest cautious optimism from an investor's standpoint.
Liquidity & Solvency
Frequently Asked Questions about TTWO
AI Answers: Common Questions About TTWO
Get AI-powered answers to the questions investors ask most about Take-Two Interactive Software, Inc.
TTWO is a good long-term buy given its improving earnings, strong franchise portfolio, and growth in digital revenues, but the stock trades at a high P/E of 56.5 and near-term technicals suggest caution.
Selling is not broadly recommended unless near-term technical breakdowns occur below $230 or if execution risks around GTA VI materialize negatively.
Key risks include execution uncertainty for GTA VI, margin pressure from rising costs, and the elevated valuation which may lead to downside if growth expectations are not met.
Upside price target near the 52-week high of $265.94 if resistance at the 50 SMA (~$233) is cleared; downside risk to $224 if support levels fail.
TTWO is currently overvalued relative to peers with elevated price-to-sales and EV/EBITDA multiples, reflecting high growth expectations but also increasing downside risk if earnings disappoint.
Fundamentals show a strong turnaround with revenue growth from $5.3B in 2024 to $6.7B in 2026, gross margins steady at 54-56%, and EPS improving from -$22.01 to positive $0.8 recently.
Technicals are neutral to slightly bearish with price below the 50 SMA resistance, RSI near 44, and ADX below 20 indicating weak momentum and potential for range-bound trading.
Primary catalysts include the GTA VI launch in November 2026 and continued growth in digital in-game monetization driving revenue and earnings growth.
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