TTWO AI Stock Analysis – Buy, Hold, or Avoid?
Take-Two Interactive Software, Inc. (TTWO)
Take-Two Interactive (TTWO) offers compelling long-term upside driven by its blockbuster IP pipeline and strong revenue growth, but persistent near-term losses, high leverage, and technical volatility create a complex risk/reward profile. While sentiment and analyst targets are bullish, current fundamentals and technicals suggest caution for short- and medium-term traders. Investors should weigh event-driven upside against execution and financial risks, with conviction highest for those with a multi-year horizon.
Fundamentals
Take-Two Interactive (TTWO) sits at a crossroads: revenue growth has recovered in recent periods thanks to robust content releases, but persistent operating losses and negative EPS reflect a business transitioning between product cycles and heavy investment phases. Despite historically strong franchises and IP, profitability remains under pressure in the most recent quarters. The company's financial profile shows underlying strength on the topline but raises medium-term concerns on earnings quality and cost control.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
24.94% YoY
Q4 2025
Net Income
25.80% YoY
Q4 2025
Net Margin
Q4 2025
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q4 2025
Net Income Growth YoY
Latest Quarter: Q4 2025
Revenue Per Share Growth YoY
Latest Quarter: Q4 2025
EPS Growth YoY
Latest Quarter: Q4 2025
Book Value Per Share Growth YoY
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.7B | 1.8B | 1.5B | 1.6B | 1.4B | 1.4B | 1.3B | 1.4B |
| Revenue Growth YoY | +24.94% | +31.09% | +12.37% | +13.08% | -0.48% | +4.15% | +4.16% | -3.24% |
| Net Income | -92.9M | -133.9M | -11.9M | -3.7B | -125.2M | -365.5M | -262.0M | -2.9B |
| Net Income Growth YoY | +25.80% | +63.37% | +95.46% | -28.36% | -36.68% | +32.76% | -27.18% | -375.67% |
| EPS | -$0.50 | -$0.73 | -$0.07 | -$21.08 | -$0.71 | -$2.08 | -$1.52 | -$17.02 |
| EPS Growth YoY | +29.58% | +64.90% | +95.67% | -23.85% | -31.48% | +35.00% | -24.59% | -370.17% |
Profitability Metrics
Gross Margin
TTM
Operating Margin
TTM
Net Margin
TTM
Return on Equity
TTM
Return on Assets
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 52.76% | 55.28% | 62.84% | 50.76% | 55.88% | 53.79% | 57.62% | 33.52% |
| Operating Margin | -2.24% | -5.52% | 1.44% | -238.67% | -9.71% | -21.96% | -13.82% | -193.88% |
| Net Margin | -5.47% | -7.55% | -0.79% | -235.46% | -9.21% | -27.01% | -19.58% | -207.45% |
| Return on Equity (ROE) | -2.66% | -3.90% | -0.34% | -174.31% | -2.20% | -6.30% | -4.37% | -51.22% |
| Return on Assets (ROA) | -1.91% | -2.73% | -0.27% | -94.79% | -3.59% | -9.62% | -7.23% | -88.41% |
Technical Analysis
TTWO exhibits mixed technical signals with recent price declines but momentum indicators suggest short-term bullish potential. Key support is found near $190, while resistance is tested around $207-$217. Chart patterns indicate a past double top and bearish breakdown, yet MACD and RSI readings currently favor a moderate bullish momentum.
No extreme reading
Price in downtrend
Strong trend active
50 below 200 - bearish
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) sits at a crossroads: revenue growth has recovered in recent periods thanks to robust content releases, but persistent operating losses and negative EPS reflect a business transitioning between product cycles and heavy investment phases. Despite historically strong franchises and IP, profitability remains under pressure in the most recent quarters. The company's financial profile shows underlying strength on the topline but raises medium-term concerns on earnings quality and cost control.
Latest Earnings
Q4 2025 Earnings (Dec 31, 2025)
Earnings Per Share (EPS)
Actual
$1.23
Estimated
$0.83
Surprise
+$0.40
Surprise %
+47.66%
Revenue
Actual
$1.7B
Estimated
$1.58B
Surprise
+$115.06M
Surprise %
+7.26%
Historical Earnings
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $1.23 | $1.46 | $0.61 | $1.09 | $0.72 | $0.66 | $0.05 | $0.31 |
| EPS (Estimated) | $0.83 | $0.94 | $0.28 | $1.10 | $0.64 | $0.42 | $0.01 | $0.09 |
| EPS Surprise | +$0.40 | +$0.52 | +$0.33 | -$0.01 | +$0.08 | +$0.24 | +$0.04 | +$0.22 |
| % Diff | +47.7% | +55.5% | +115.9% | -0.9% | +12.5% | +59.0% | +314.9% | +263.0% |
| Revenue | ||||||||
| Revenue (Actual) | $1.7B | $1.77B | $1.5B | $1.58B | $1.36B | $1.35B | $1.34B | $1.4B |
| Revenue (Estimated) | $1.58B | $1.73B | $1.31B | $1.55B | $1.39B | $1.45B | $1.26B | $1.31B |
| Revenue Surprise | +$115.06M | +$45.26M | +$191.97M | +$31.69M | -$26.54M | -$94.8M | +$81.07M | +$93.88M |
| % Diff | +7.3% | +2.6% | +14.6% | +2.0% | -1.9% | -6.5% | +6.4% | +7.2% |
Valuation
Take-Two Interactive (TTWO) exhibits a complex valuation profile characterized by negative earnings but solid revenue growth and strong market sentiment driven by upcoming game releases. Despite negative profit margins and operating challenges, analysts generally hold a positive outlook with significant upside potential reflected in consensus price targets near 30% above current prices. Technical indicators and recent earnings beats support a cautiously optimistic near-term view, balanced by refinancing and operational risks.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | -126.36 | -89.05 | -922.42 | -2.46 | -64.69 | -18.44 | -25.37 | -2.20 |
| Price to Sales | 27.64 | 26.89 | 29.20 | 23.15 | 23.83 | 19.93 | 19.87 | 18.29 |
| Price to Book | 13.43 | 13.90 | 12.61 | 17.14 | 5.68 | 4.65 | 4.44 | 4.51 |
| Enterprise Value to EBITDA | 272.95 | 419.88 | 161.87 | -11.86 | 217.74 | -2057.90 | 174.10 | -12.51 |
| Enterprise Value to Revenue | 28.64 | 27.81 | 30.18 | 24.83 | 25.96 | 22.05 | 21.91 | 20.27 |
Sentiment & Analyst Ratings
Market sentiment for Take-Two Interactive (TTWO) is strongly positive, bolstered by significant analyst buy ratings and optimism around upcoming game releases such as Grand Theft Auto VI. Recent quarterly results surpassed expectations, driving confidence in the company's growth trajectory. However, insider selling activity and some valuation concerns introduce a note of caution among investors.
Analyst Recommendations
Risk Assessment
Take-Two Interactive (TTWO) exhibits a moderate financial risk profile, supported by improving liquidity but a relatively high leverage level. The company is highly dependent on blockbuster releases like Grand Theft Auto VI, which creates both significant upside potential and execution risk. Market sentiment is cautiously optimistic with mostly buy ratings, but valuation concerns and competitive pressures persist.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q4 2025
Quick Ratio
Latest Quarter: Q4 2025
Debt-to-Equity
Latest Quarter: Q4 2025
Debt-to-Assets
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 1.14 | 1.15 | 1.16 | 0.78 | 0.83 | 0.85 | 0.90 | 0.94 |
| Quick Ratio | 1.14 | 1.15 | 1.16 | 0.78 | 0.83 | 0.85 | 0.90 | 0.94 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 1.11 | 1.02 | 1.01 | 1.92 | 0.72 | 0.71 | 0.69 | 0.62 |
| Debt-to-Assets | 0.39 | 0.35 | 0.36 | 0.45 | 0.32 | 0.31 | 0.32 | 0.29 |
Liquidity Assessment
Current Ratio: 1.14(Adequate)
Quick Ratio: 1.14(Strong)
The company has adequate liquidity but may face challenges in a downturn.
Solvency Assessment
Debt-to-Equity: 1.11(High)
Debt-to-Assets: 0.39(Moderate)
The company has relatively high debt levels, which may increase financial risk in economic downturns.
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 not a classic value buy at $219.97 given its negative P/E (-9.74) and ongoing losses, but it offers significant upside if upcoming blockbusters deliver. With analyst targets 30%+ above current prices and strong sentiment, it is best suited for long-term investors comfortable with volatility and event risk.
Unless your thesis has changed or you need to reduce risk ahead of major events, holding is reasonable; technicals are mixed but not overtly bearish, and fundamentals are improving. Selling may be considered if you are risk-averse or expect delays in key releases.
The biggest risks are execution failures or delays in major launches (especially GTA VI), high leverage (debt-to-equity >1.1, debt ~39% of assets), and negative interest coverage. A miss on these fronts could lead to sharp downside due to the stock's premium valuation.
Technical resistance is near $217-$220, with support at $190; longer-term analyst targets cluster around $270-$300, implying 20-35% upside if catalysts materialize. Downside risk is to $190 if support fails, so risk/reward is skewed to event outcomes.
TTWO is fairly valued relative to growth expectations but expensive on current metrics: negative P/E, high P/S, and elevated EV/EBITDA. The market is pricing in future profitability from blockbuster launches, so valuation is justified only if execution is strong.
Fundamentals are mixed: revenue is growing robustly (Q4 up ~25% YoY), gross margins are strong (52%-63%), but net margins are negative and leverage is high. Profitability remains a concern until new releases drive earnings recovery.
Technically, TTWO is testing resistance ($217-$221) with bullish MACD and RSI (63), but the prior breakdown from $232 and mixed moving averages suggest caution. Support at $190 is key; a break above $221 would be bullish, but confirmation is needed.
The main catalysts are the launch and monetization of GTA VI (expected Nov 2026), continued digital/live service growth, and upcoming earnings reports. Watch for news on release timing, earnings surprises, and any changes in cost structure or debt management.
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