Take-Two Interactive (TTWO) Earnings Preview

Last Updated: May 8, 2025

With expectations for earnings per share to increase over 300% year-over-year, Take-Two Interactive Software Inc. (TTWO) is grabbing attention as it prepares to report earnings on May 15, 2025, after the market closes. This significant jump in projected profit is a key highlight for investors. What else should you consider as you analyze Take-Two Interactive Software Inc. ahead of the report?

Earnings Expectations Point to Significant Growth

The forecast for TTWO's upcoming earnings shows analysts are projecting revenue of $1.53 billion. This would be a solid 13.42% increase compared to the same time last year. But the real highlight for this earnings report is the expected earnings per share (EPS), which analysts forecast at $1.22. If Take-Two Interactive Software Inc. hits this target, it would represent an astounding 335.71% jump year-over-year. These figures suggest strong top-line growth and even more impressive improvement on the profitability front for Take-Two Interactive Software Inc., a positive sign in this TTWO stock analysis.

A Look at Business Metrics

Take-Two Interactive Software Inc.'s business analyzes revenue across different areas. Based on recent data, key segments include:

Console: Games sold for consoles.
Mobile: Games played on mobile devices.
PC And Other Products: Games for computers and other related items.

Understanding how these segments perform can give you a better picture of where Take-Two Interactive Software Inc. is seeing growth in its different markets. You can follow up on more detailed business metrics here.

Recent Stock Performance

The stock price of Take-Two Interactive Software Inc. (TTWO) has seen some interesting movement lately. Currently trading around $225.52, the stock's recent returns are:

1 Week: -4.1%
1 Month: +14.91%
3 Months: +8.02%
6 Months: +26.77%
1 Year: +54.5%

While showing a dip in the last week, TTWO stock has delivered significant positive returns over longer periods. This performance is a key part of any TTWO forecast. Access concise statistics and key financial ratios for Take-Two Interactive Software Inc. – view them here.

Technical and Momentum Indicators

Looking at technical indicators for TTWO stock can give you clues about its recent price action and momentum:

RSI: 56.2 (Neutral)
MFI: 63.08 (Neutral)
StochRSI: 48.1 (Neutral)
CCI: 80.69 (Neutral)

These indicators are currently in neutral territory, not signaling clear overbought or oversold conditions. The current price of $225.52 is trading above both the 20-day SMA ($219.03) and the 20-day EMA ($220.86), which can suggest positive short-term momentum for TTWO.

Analyzing Options Activity

Options trading activity can sometimes signal institutional sentiment or expectations around an event like earnings. For Take-Two Interactive Software Inc. (TTWO), the total premium stands at $3,834,048.0. The IV Rank is 63.64%, indicating relatively higher implied volatility compared to its past year, which is common heading into an earnings report. Call volume was 3,151.0 contracts, while put volume was 5,763.0 contracts, resulting in a put-call ratio of 1.83. A ratio above 1 suggests more put options are being traded than calls, which could indicate some traders are hedging or betting on a price decrease. Open interest is at 84,624.0 contracts, with a change in OI of 1,241.0. The IV30 is 0.44. Access real-time options chains and key derivatives data for Take-Two Interactive Software Inc. – explore them here.

Understanding Short Interest

Short interest figures show how many shares are being bet against. For Take-Two Interactive Software Inc. (TTWO), the short float is 5.19%, with 8,100,629 shares shorted. This represents 4.61% of shares outstanding. Fail-to-deliver shares were 2,638, a relative FTD of 0.13%. This level of short interest isn't excessively high but is worth noting in a complete TTWO stock analysis. Access up-to-date short interest figures for Take-Two Interactive Software Inc. via Short Interest Data.

Analyst Ratings and Price Targets

What do the professionals think about Take-Two Interactive Software Inc. (TTWO)? There are 21 analyst ratings, with an overall rating of "Buy". The average price target is $215.0. It's interesting to note that this average target is below the current trading price of $225.52. The top analyst has a target of $190.0 with a "Buy" rating, which is even further below the current price. This creates a bit of a mixed picture for the TTWO forecast compared to the current stock price. Access consensus analyst forecasts for Take-Two Interactive Software Inc. via Analyst Forecasts.

Valuation and Fundamentals

Looking at Take-Two Interactive Software Inc.'s (TTWO) valuation and fundamentals provides another angle for this stock analysis:

P/E Ratio: -6.81
PEG Ratio: -0.03
P/S Ratio: 4.77
P/B Ratio: 4.5
Gross Profit Margin: 41.91%
Net Profit Margin: -69.99%

The negative P/E and PEG ratios show that the company has not been profitable recently on a trailing basis. While the gross margin is healthy, the negative net margin indicates significant costs below the cost of revenue. The Price/Sales and Price/Book ratios give some context for how the market values the company's revenue and assets, respectively. This TTWO stock analysis requires looking beyond traditional profitability metrics given the current negative earnings. Access comprehensive fundamental data for Take-Two Interactive Software Inc. via Financials.

Cash Flow and Balance Sheet

Reviewing the cash flow and balance sheet for Take-Two Interactive Software Inc. (TTWO) is important. The company reported negative free cash flow of $-157.8 million and negative operating cash flow of $-16.1 million. They hold $754 million in cash and cash equivalents. The current ratio is 0.94, which is slightly below 1, suggesting current assets are just shy of covering current liabilities. The debt-to-equity ratio is 0.62, indicating a moderate level of debt relative to shareholder equity.

Risks and Considerations

When considering Take-Two Interactive Software Inc. (TTWO) ahead of earnings, there are a few risks to keep in mind. The impact of stock-based compensation can influence profitability figures. Given the negative current earnings and high P/S and P/B ratios, the stock could be sensitive to valuation concerns if growth disappoints. While technical indicators aren't flashing overbought, the price is above short-term moving averages, suggesting recent positive momentum could face resistance. The 30-day Value at Risk (VaR) at a 95% confidence level is -16.73%, which gives you an idea of the potential downside risk based on historical volatility.

Additionally, the highly anticipated release of Grand Theft Auto VI (GTA 6) is a major factor for Take-Two's future revenue. While initially expected in the Fall of 2025, the game's release date has been updated to May 26, 2026. This shifts the bulk of the expected massive revenue and potential profitability impact into fiscal year 2027. Analysts widely expect GTA 6 to generate billions in revenue in its first year, including significant pre-order sales. However, the delay means this major catalyst is now further out, a key point for any TTWO forecast.

Conclusion: The Bottom Line

The upcoming Take-Two Interactive Software Inc. (TTWO) earnings report is set to show significant year-over-year EPS growth, alongside solid revenue increases, according to analyst projections. However, the company is still dealing with negative profitability and cash flow on a trailing basis, and analyst price targets are currently below the stock's trading price. The enormous potential of GTA 6 is a key part of the long-term TTWO forecast, but the delay of its release to May 2026 means the major financial impact is now expected in fiscal year 2027. Heading into the report, you'll want to see if the company can deliver on the strong near-term EPS forecast and provide positive commentary on progress for future titles, including GTA 6, to assess pullback risk versus upside potential post-earnings. Keep an eye on the details beyond just the headline numbers in this Take-Two Interactive Software Inc. earnings analysis.

Happy Investing!