Take-Two Interactive Software TTWO is slated to report its fourth-quarter fiscal 2026 results on May 21.
For the fourth quarter of fiscal 2026, Take-Two expects GAAP net revenues between $1.57 billion and $1.62 billion. It expects a loss per share between 70 cents and 54 cents.
The Zacks Consensus Estimate for TTWO’s fiscal fourth-quarter revenues is pegged at $1.55 billion, indicating a 1.94% year-over-year decline.
The consensus mark for earnings is pegged at 58 cents per share, which has been unchanged over the past 30 days, indicating a deterioration of 46.79% from the year-ago quarter.
Take-Two Interactive Software, Inc. Price and EPS Surprise
Take-Two Interactive Software, Inc. price-eps-surprise | Take-Two Interactive Software, Inc. Quote
However, TTWO beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with an average surprise of 58.87%.
Let us see how things have shaped up for the upcoming announcement.
Factors to Note Ahead of TTWO’s Q4 Results
TTWO’s mobile portfolio continued to demonstrate exceptional momentum heading into fourth-quarter fiscal 2026, supported by strong engagement across franchises such as Toon Blast, Match Factory, Empires & Puzzles and Color Block Jam . Management highlighted that mobile direct-to-consumer operations delivered their strongest quarter on record, aided by personalized offers, flexible pricing and lower payment friction. The company also noted improving regulatory conditions for direct-to-consumer initiatives, which are expected to support stronger margins and profitability going forward. These factors likely benefited Take-Two’s fourth-quarter fiscal 2026 performance through higher recurrent consumer spending and stronger mobile monetization trends.
Take-Two’s upcoming release slate and expanding live-service ecosystem also positioned the company favorably for the quarter to be reported. The launch of WWE 2K26 in March, combined with new content for PGA TOUR 2K25 and the Apple Arcade launch of Civilization VII , added fresh engagement opportunities across multiple franchises. At the same time, management expects key contributors to fiscal fourth-quarter Net Bookings to include NBA 2K, Grand Theft Auto, WWE 2K, Toon Blast and Red Dead Redemption . The company projected fourth-quarter Net Bookings of $1.51-$1.56 billion alongside 7% recurrent consumer spending growth, indicating that these launches and live-service updates are anticipated to have boosted overall quarterly performance.
NBA 2K continued to be a major growth engine for Take-Two, entering the quarter under review. NBA 2K26 has sold approximately 8 million units, while recurrent consumer spending, daily active users and MyCAREER daily active users all increased 30% year over year. Management stated that the franchise is on track to deliver the highest annual Net Bookings and recurrent consumer spending in its history. Additionally, fiscal fourth-quarter guidance assumes a high-20% increase in NBA 2K recurrent consumer spending, supported by continued player engagement and monetization. This sustained momentum likely strengthened Take-Two’s fourth-quarter fiscal 2026 results meaningfully.
However, escalating costs and continued losses are also likely to have weighed on Take-Two’s profitability in the fourth quarter of fiscal 2026. The company projected quarterly operating expenses of $973-$983 million, caused partly by higher performance-based compensation and increased user acquisition investments for its mobile portfolio. At the same time, management guided for a GAAP net loss of $99-$129 million for the quarter. These elevated spending levels, combined with aggressive investments in live services and marketing initiatives, are anticipated to have pressured margins and earnings despite healthy revenue expectations.
What Our Model Says About TTWO Stock
Our proven model does not conclusively predict an earnings beat for Take-Two this time around. According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here, as you can see below.
TTWO has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy) at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks in the Zacks worth considering, as our model shows that these have the right combination of elements to beat earnings this season.
Ciena CIEN currently has an Earnings ESP of +1.76% and sports a Zacks Rank #1. CIEN shares have surged 137.1% in the year-to-date period. It is set to report its second-quarter fiscal 2026 results on June 4. You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron Technology MU has an Earnings ESP of +5.69% and flaunts a Zacks Rank #1 at present. MU shares have soared 153.9% year to date. MU is set to report its third-quarter fiscal 2026 results on June 24.
Kingsoft Cloud KC has an Earnings ESP of +3.57% and a Zacks Rank #2 at present. KC shares have rallied 48.3% year to date. KC is set to report its first-quarter 2026 results on May 27.
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This article originally published on Zacks Investment Research (zacks.com).