Take-Two Q1 FY2026 slides: Net bookings beat, GTA VI release date confirmed

Introduction & Market Context

Take-Two Interactive Software (ETR:SOWGn) Inc (NASDAQ:TTWO) reported first-quarter fiscal 2026 results that significantly exceeded guidance, driven by strong performance across its mobile and console franchises. The company’s shares responded positively, rising 4.11% to $235.80 in premarket trading following the August 7, 2025 presentation.

The gaming publisher delivered net bookings of $1.42 billion, well above its guidance range of $1.25-1.30 billion, and raised its full-year outlook. In a significant announcement for investors, Take-Two confirmed that its highly anticipated Grand Theft Auto VI will launch on May 26, 2026.

Quarterly Performance Highlights

Take-Two’s Q1 FY2026 financial performance exceeded expectations across key metrics. GAAP net revenue reached $1.50 billion, surpassing the guidance range of $1.35-1.40 billion. The company reported a GAAP net loss of $12 million, or $(0.07) per share, which was substantially better than the projected loss of $(139)-(115) million, or $(0.78)-(0.65) per share.

As shown in the following summary of GAAP results:

Net bookings, a key operational metric that accounts for product returns and other adjustments, totaled $1.42 billion, significantly exceeding the guidance range of $1.25-1.30 billion. This outperformance was driven by stronger-than-expected results from mobile titles including Toon Blast, Match Factory, NBA All-Star, and Color Block Jam, as well as robust performance from the NBA 2K and Grand Theft Auto franchises.

Recurrent consumer spending (RCS) grew 17% year-over-year, more than double the 7% growth guidance. This was fueled by a remarkable 48% growth in NBA 2K, low-teens growth in mobile, and low single-digit growth in GTA Online.

The following chart illustrates these operational results:

Detailed Financial Analysis

Take-Two’s revenue continues to be predominantly digital, accounting for 98% of total net revenue in Q1 FY2026. This represents a slight increase from 97% in the same period last year, reflecting the ongoing industry-wide shift toward digital distribution and in-game purchases.

The following chart breaks down the company’s net revenue and net bookings by category:

Operating cash flow was $25 million for the quarter, down from $35 million in Q1 FY2025. Capital expenditures decreased significantly to $45 million from $191 million in the prior year period. The company expects full-year operating cash flow of approximately $130 million.

Strategic Initiatives

Take-Two detailed an extensive game pipeline spanning fiscal years 2026 through 2028, featuring 38 titles across three categories: 21 Immersive Core games, 9 Mobile titles, and 8 New Iterations of Previously Released Titles.

The most significant upcoming releases include:

• Mafia: The Old Country (2K) - Launching August 8, 2025
• NBA 2K26 (2K) - Launching September 5, 2025
• Borderlands 4 (2K) - Launching September 12, 2025
• Grand Theft Auto VI (Rockstar Games) - Launching May 26, 2026

The company has already launched Civilization VII for Meta (NASDAQ:META) Quest VR (April 10, 2025) and Nintendo Switch 2 (June 5, 2025), with Borderlands 4 for Switch 2 coming on October 3, 2025.

The following slide showcases the company’s robust game pipeline:

Forward-Looking Statements

Based on its strong Q1 performance, Take-Two raised its full-year FY2026 guidance. The company now expects GAAP net revenue of $6.10-6.20 billion, up from the previous guidance of $5.95-6.05 billion. Net bookings are projected to reach $6.05-6.15 billion, increased from the prior guidance of $5.90-6.00 billion.

The revised outlook is detailed in the following guidance summary:

Notably, Take-Two significantly improved its recurrent consumer spending growth forecast for FY2026, now expecting 4% year-over-year growth compared to the previous guidance of flat performance. This revision assumes mid-teens growth for NBA 2K, low single-digit growth for mobile, and a decline for Grand Theft Auto Online.

For the second quarter of fiscal 2026, Take-Two expects net bookings of $1.70-1.75 billion with recurrent consumer spending growth of 1% year-over-year. The Q2 release slate includes Mafia: The Old Country, NBA 2K26, and Borderlands 4.

Take-Two’s improved performance and outlook reflect the company’s strong execution across its portfolio, particularly in mobile gaming and key franchises. With Grand Theft Auto VI now officially scheduled for release in May 2026, investors have greater visibility into the company’s long-term growth trajectory. The stock’s positive premarket reaction suggests the market is responding favorably to both the quarterly results and the updated guidance.

Full presentation:

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