Theo Outlook
Take-Two Interactive (TTWO) presents a bullish medium- to long-term thesis despite short-term headwinds, trading at a compelling forward P/E of 5.36 versus a trailing P/E of 20.16 on negative TTM EPS of -$0.61. With a $35.1B market cap, TTM revenue of $6.56B (P/S ratio 10.05), and recent quarterly revenue growth of -49.7%, the stock languishes near its 52-week low of $187.63 at $189.69. However, analyst consensus target price of $276.81 implies 46% upside, backed by 24 Buy ratings amid improving estimates.
Key catalysts include the upcoming May 21, 2026 earnings for Q1 FY2027 (EPS est. $0.20), recent Q4 FY26 beat (EPS $1.23 vs. $0.83 est., +48% surprise), and blockbuster pipeline like GTA VI (expected H2 2026) and NBA 2K27 driving live services revenue. Quarterly revenue estimates for FY26 show $1.52B for Q2, with upward revisions in EPS forecasts (e.g., +2 upgrades last 30 days). Strong gross profit TTM of $3.89B (59% margin) supports reinvestment in high-margin digital content and mobile expansion.
Risks encompass development delays (historical GTA pattern), competitive pressures from EA and Microsoft, and cyclical gaming demand amid macro slowdowns, evidenced by Q1 FY26 EPS miss (-$21.08). High EV/Revenue of 6.59 and negative ROE (-86%) highlight leverage concerns. Mitigations include dominant IP moats, $823M EBITDA, low beta of 0.96, and 96% institutional ownership for stability.
Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.