Take-Two Interactive Software, Inc.

Take-Two reported first-quarter net bookings of approximately $1.39 billion, slightly above guidance of $1.32 billion to $1.37 billion. GAAP net revenue rose 2% to $1.5 billion, cost of revenue increased 17% to $651 million, and operating expenses were flat at $918 million. Recurrent consumer spending declined 1% versus expectations for a 3% decline, and it represented 84% of net bookings. Management reiterated fiscal 2027 net bookings of $8.0 billion to $8.2 billion, roughly 20% growth at the midpoint, and said it still expects GAAP net revenue of $7.9 billion to $8.1 billion, cost of revenue of $3.54 billion to $3.66 billion, total operating expenses of $4.15 billion to $4.17 billion, operating cash flow in excess of $1 billion, and a net cash position by year-end. For Q2, the company guided net bookings to $1.62 billion to $1.67 billion and GAAP net revenue to $1.42 billion to $1.47 billion.

Strauss Zelnick said the quarter showed strong execution across the portfolio and framed fiscal 2027 as a potential inflection point for the company, largely because of Grand Theft Auto VI. He emphasized that Take-Two is focused on delivering more value than it charges, expanding internationally, and using technology to enhance creativity rather than replace it. His tone was upbeat but measured, especially when discussing GTA VI preorders, where he repeatedly said the company does not want to claim victory before launch.

Lainie Goldstein said Q1 net bookings of $1.39 billion came in above the guide, helped by better-than-expected NBA 2K and GTA performance. She highlighted GAAP net revenue of $1.5 billion, cost of revenue of $651 million including a $43 million impairment charge tied to an unannounced third-party title, and flat operating expenses of $918 million. On the outlook, she reiterated fiscal 2027 net bookings of $8.0 billion to $8.2 billion, operating cash flow above $1 billion, a net cash position by year-end, and noted capital expenditures are now expected to be about $290 million because of a planned real estate purchase.

Analysts focused heavily on GTA VI, including preorder strength, the Netflix extended-look partnership, and the premium SKU mix. Management said preorder demand is unprecedented and “astonishing,” but also cautioned that demand could be pulled forward and that it has not sold a unit yet, so it is not changing guidance. Other questions covered mobile demand, user acquisition costs, AI, streaming, ads, and hardware costs; management said consumer demand in mobile is not broadly weakening, AI is being used to boost innovation and efficiency but not replace creative staff, and it remains skeptical about hardware costs but bullish on open systems and future streaming.