Take-Two Interactive Software, Inc. (TTWO), headquartered in New York, develops, publishes and markets interactive entertainment solutions for consumers. Valued at a market capitalization of $38.9 billion, the company’s products, which include iconic franchises such as Grand Theft Auto, Red Dead Redemption, NBA 2K, Borderlands and BioShock, are designed for console systems, PC and mobile platforms. It is expected to announce its fiscal fourth-quarter earnings for 2026 after the market closes on Thursday, May 21.
Ahead of this event, analysts expect this gaming company to post earnings of $0.20 per share, down 72.6% from $0.73 per share in the year-ago quarter. The company has surpassed Wall Street earnings estimates in each of the last four quarters. In the third quarter, TTWO’s EPS of $0.83 beat consensus expectations by a notable margin of 107.5%.
For the current fiscal year, which ends in March, analysts expect TTWO to report earnings of $2.44 per share, up 335.7% from $0.56 per share in fiscal 2025. Its EPS is expected to further grow 174.6% year-over-year to $6.70 in fiscal 2027.
TTWO has declined 5.9% over the past 52 weeks, notably trailing the 32.2% return of the S&P 500 Index ($SPX) and the 23.5% gain of the State Street Communication Services Select Sector SPDR ETF (XLC) over the same time period.
On March 24, TTWO stock fell 4.7% as negative sentiment spread across the gaming sector. The drop came after Epic Games announced more than 1,000 job cuts amid weakening commitment to its flagship title, Fortnite. The company acknowledged that its expenses had significantly exceeded revenues, prompting significant cost reductions to sustain operations. The development of a key industry player fueled concerns about further weakness in the video game market, affecting investor sentiment towards other companies in the sector.
Wall Street analysts are very bullish on TTWO stock, with an overall rating of “Strong Buy.” Among the 29 analysts covering the stock, 24 recommend “Strong Buy”, two indicate “Moderate Buy” and three suggest “Hold”. The average price target for TTWO is $276.79, indicating a potential upside of 31.3% from current levels.
On the date of publication, Neharika Jain had no (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com