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Investing.com - Take-Two Interactive (NASDAQ:TTWO), currently valued at over $40 billion, received a price target increase from Benchmark on Friday, which raised its target to $275.00 from $250.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the stock has delivered an impressive 63.2% return over the past year.
The price target adjustment follows Take-Two’s strong Q1 FY26 performance, where the company exceeded expectations across all major financial metrics. The gaming company reported net bookings of $1.423 billion, surpassing the consensus estimate of $1.310 billion, while achieving AEBITDA of $198 million compared to the expected $128 million. The company maintains a moderate debt level and has shown steady revenue growth of 5.31% over the last twelve months.
Take-Two’s adjusted EPS reached $0.61, significantly higher than the Street’s expectation of $0.29. Benchmark attributed this outperformance to robust results across mobile, sports, and core IP titles.
Management has raised full-year guidance across net bookings, AEBITDA, and adjusted EPS, signaling confidence in the company’s content pipeline and execution despite an uncertain macro environment.
Benchmark highlighted upcoming releases including Borderlands 4, NBA 2K26, and Grand Theft Auto VI (scheduled for May 26, 2026) as critical factors for the company’s continued momentum, with the latter described as a "massive upcoming catalyst" for Take-Two’s financial trajectory.
In other recent news, Take-Two Interactive reported impressive financial results for the first quarter of fiscal year 2026, with net bookings reaching $1.42 billion, surpassing consensus estimates of $1.31 billion. The company’s adjusted earnings per share came in at $0.61, significantly higher than the expected $0.29. This strong performance has led Take-Two to raise its fiscal year 2026 guidance to a range of $6.05 billion to $6.15 billion, up from the previous range of $5.9 billion to $6.0 billion. Analysts have responded positively to these results, with Benchmark, DA Davidson, Raymond (NSE:RYMD) James, and BofA Securities all raising their price targets for the company. Benchmark increased its target to $275, while DA Davidson set theirs at $270. Raymond James adjusted its target to $260, and BofA Securities raised it to $285. Oppenheimer reiterated an Outperform rating with a price target of $265. The company’s success was driven by strong performances in key franchises, including NBA 2K, which saw a nearly 50% increase in recurring consumer spending year-over-year.
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