This TTWO Stock Forecast article was written by Samy Nakach – Investment Analyst at I Know First.

Highlights:

This TTWO stock forecast outlines the company’s current position, upcoming catalysts, and long-term growth potential.

• GTA VI to Boost 2026–2027:A blockbuster launch in May 2026 is expected to drive over $3B in sales, reshaping Take-Two’s growth.
• AI Picked the Winner: Our AI correctly flagged TTWO in April, delivering +10.5% return and helping beat the market by +5.75%.
• Strong Core & Mobile Growth: Big franchises and Zynga’s mobile games drove $5.35B in revenue, with steady margins from in-game spending

Company Overview

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is a global leader in the development, publishing, and marketing of interactive entertainment. Founded in 1993 and headquartered in New York City, the company has cemented its position as one of the premier publishers in the video game industry. With a diverse portfolio of critically acclaimed and commercially successful franchises, Take-Two operates across console, PC, and mobile platforms, reaching consumers worldwide through both physical and digital distribution channels.

Business Overview

Take-Two Interactive operates at the intersection of high-quality game development and recurring digital monetization, with a dual focus on blockbuster console titles and a robust mobile gaming ecosystem. The company’s strategy blends long-term franchise development with short-cycle, monetizable content—positioning it as a hybrid growth-and-income opportunity within the entertainment sector.

Earnings Review & Strategic Outlook: Q4 FY2025

On May 15, 2025, Take-Two Interactive unveiled its financial results for the fourth quarter of fiscal year 2025 and for the entire fiscal year 2025, presenting a complex financial landscape.

Key Financial Highlights

• Revenue: $1.58 billion, a 13% increase year-over-year, slightly surpassing analyst expectations of $1.55 billion.
• Net Bookings: $1.58 billion, up 17% from the previous year.
• GAAP Net Loss: $3.73 billion, or $21.08 per share, primarily due to a $3.55 billion goodwill impairment charge.
• Adjusted EPS: $1.08, marginally below the anticipated $1.10.

The revenue growth was driven by strong performances from key franchises, including NBA 2K25, Grand Theft Auto Online, and Red Dead Redemption 2, as well as mobile titles like Toon Blast and Match Factory!

Fiscal 2026 Guidance

• Net Bookings: Projected between $5.9 billion and $6.0 billion, below Wall Street’s expectation of $6.46 billion.
• Adjusted EPS: Forecasted at $2.58, indicating modest growth.

The guidance reflects the anticipated impact of the delayed release of Grand Theft Auto VI (GTA VI), now scheduled for May 26, 2026, shifting its financial contributions to fiscal 2027.

Strategic Implications

Despite the short-term financial challenges, Take-Two’s management remains optimistic about the company’s long-term trajectory. CEO Strauss Zelnick emphasized that the release of GTA VI is expected to set new records for net bookings and establish a higher baseline for profitability in fiscal 2027.

The company’s diversified portfolio, encompassing both blockbuster console titles and a robust mobile gaming segment, positions it well to navigate the interim period leading up to the GTA VI launch.

Revenue Breakdown & Business Segments

For the most recent fiscal year (2024), TTWO reported approximately $5.35 billion in total revenue, with projections to reach $7.87 billion in FY 2026, implying a strong forward CAGR driven by new game launches such as GTA VI and ongoing monetization initiatives.

Key Business Lines include:

• Console/PC Titles: Revenue from Rockstar Games and 2K franchises forms the foundation of TTWO’s premium segment. This includes high-visibility titles like Grand Theft Auto, NBA 2K, Red Dead Redemption, and Borderlands.
• Mobile Gaming (Zynga): Acquired in 2022, Zynga contributes significantly to Take-Two’s digital and recurring revenue, offering titles like Words With Friends, CSR Racing, and FarmVille. Mobile is now a strategic growth vertical, contributing upwards of 30–35% of company-wide revenues.
• Recurrent Consumer Spending (RCS): A key driver of margins, RCS includes virtual currency, downloadable content (DLC), and season passes. In 2024, this segment made up 78% of GAAP net revenue, reflecting strong engagement and monetization. 

The GTA Franchise: A Multi-Billion Dollar Cultural Phenomenon

Few intellectual properties in entertainment—let alone in gaming—can rival the commercial magnitude of Rockstar Games’ Grand Theft Auto (GTA) series. Since its creation in 1997, the franchise has sold over 410 million units globally, with GTA V alone accounting for over 185 million copies since its release in 2013, making it the second best-selling video game of all time, behind Minecraft.

Launched across three console generations, GTA V has generated an estimated $7.5+ billion in lifetime revenue, not only through initial sales but also via GTA Online, a live-service model that monetizes players through in-game currency, updates, and content expansions. This hybrid model transformed GTA from a one-time blockbuster into a recurring revenue engine—an approach that will almost certainly carry over into GTA VI.

Anticipating GTA VI: Investor Expectations & Financial Impact

The forthcoming release of Grand Theft Auto VI is arguably the most anticipated game launch of the decade. Set to release in May 2026, the game is expected to:

• Generate $1 billion+ in pre-order sales
• Achieve $2.5–3 billion in first-year revenue
• Drive a material re-rating of TTWO’s earnings and cash flow multiples

Investors are already pricing in this upside, evidenced by the stock’s ~55% YoY return, despite the official delay announced in May 2025. While short-term volatility followed the announcement, markets stabilized quickly due to the strength of the teaser trailer and reaffirmed confidence in Rockstar’s execution.

Zynga Acquisition: A Strategic Pivot into Mobile

Take-Two’s $12.7 billion acquisition of Zynga in 2022 marked a significant expansion into the mobile gaming ecosystem, now the largest segment of the gaming market by revenue.

• Cross-platform capabilities: TTWO can now port high-value franchises like NBA 2K or Borderlands into mobile spin-offs.
• Monetization synergies: Zynga brings expertise in ad-tech, engagement optimization, and microtransaction-based revenue models.
• Audience expansion: TTWO now accesses a broader demographic, especially casual players and mobile-first users.
• Mobile revenues have surged, contributing up to 35% of TTWO’s total revenue.

Although margin dilution and integration challenges initially pressured profitability, the long-term upside of a blended console-mobile portfolio is a key pillar of TTWO’s investment thesis.

Forward Outlook & Forecast Thesis: Long-Term Bullish Signal on TTWO

At I Know First, our proprietary AI model continues to issue strong long-term bullish signals on Take-Two Interactive (TTWO)—reflecting both a favorable technical setup and underlying business momentum. As of early May 2025, TTWO stands out as a top-tier pick across multiple forecast horizons, with the 1M, 3M and 1Y signals showing consistent strength.

This confidence is rooted in two converging forces:

1. Anticipated GTA VI-Driven Revenue Explosion

Take-Two is poised for a breakout year in FY2026, as market expectations build toward the potential launch of Grand Theft Auto VI. While the game is officially scheduled for release in May 2026, the pre-release monetization cycle has already begun:

• Historical precedent from GTA V shows that TTWO’s stock surged over 60% between announcement and post-launch quarters – this shows potential of long-term rise for GTA VI release
• GTA VI is expected to generate over $1 billion in pre-orders alone, with full-year sales likely exceeding $3 billion, according to third-party analyst models.
• The franchise carries not just strong unit economics but massive engagement potential via GTA Online 2.0, creating a high-margin, long-tail revenue stream post-launch.

2. Earnings Momentum & Catalysts Ahead

TTWO is also set to report earnings later this week, offering a timely potential catalyst. Market sentiment has already improved after strong returns in Q1, and investors will be closely watching for:

• Updated guidance related to GTA VI’s development cycle
• Zynga performance metrics, especially in monetization and DAUs
• Commentary on margins, given the rising R&D and S&M spend in preparation for major launches
• We believe management is likely to reaffirm confidence in its multi-year roadmap, and the market may begin pricing in upside ahead of formal 2026 guidance.

AI Forecast Validation:

The I Know First AI-Powered Portfolio continued to prove its predictive strength throughout April 2025. Amid a volatile and bearish market backdrop, the portfolio delivered +5.75% alpha over the S&P 500, driven by precise asset selection and disciplined rebalancing.

A standout performer during this period was Take-Two Interactive (TTWO), which delivered a +10.5% return between April 2nd and April 30th, significantly outperforming the broader market.

AI Forecast:

Importantly, this is not the first time our algorithm has successfully identified TTWO as a top performer. In a previous 3-month forecast published on April 26, 2023, TTWO was flagged as a long opportunity, delivering an 18.3% return by July 26, 2023—again beating the S&P 500 benchmark, which returned only 12.16% during the same period.

These consistent results highlight the accuracy and repeatability of I Know First’s AI system in identifying asymmetric opportunities like TTWO ahead of broader market recognition.

Summary:

In essence, we issue a Buy Signal for TTWO because it presents a unique combination of technical expertise, significant upside potential, and investor enthusiasm fueled by the franchise. Our AI system consistently ranks TTWO as a high-potential asset for long-term growth-oriented portfolios, just as it did before previous cycle peaks, like GTA V.

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Please note-for trading decisions use the most recent forecast.