DA Davidson affirmed its Buy rating on Take-Two Interactive and kept a $300 per-share price target following the publisher’s latest fiscal third-quarter performance. The firm cited results that exceeded expectations and reiterated confidence in Take-Two’s key franchises and balance-sheet profile.
Quarterly and trailing performance
Take-Two reported net bookings for fiscal third quarter 2026 that were roughly 11% above consensus, a beat the analyst team attributed to robust demand for NBA 2K, solid returns from the company’s mobile portfolio, and unexpected strength from GTA Online. The company’s revenue over the past twelve months totaled $6.56 billion, a year-over-year increase of 20.34%.
The market has shown recent volatility in the stock. The share price stood at $212.17 at the time referenced in the data, and the stock declined about 12.75% over the prior week. Technical indicators referenced in the available market data suggest the equity’s relative strength index is in oversold territory.
GTA VI timing and near-term margin outlook
Management confirmed that Grand Theft Auto VI remains on schedule for its planned November 2026 release, addressing investor concern over possible slippage. Company commentary also indicated that marketing activity for Grand Theft Auto VI will commence this summer. Executives warned that ramping promotional spend for the launch could exert additional margin pressure in the first and second quarters of fiscal 2027.
Profitability and analyst expectations
Although Take-Two has not been profitable over the last twelve months, consensus analyst projections tracked by third-party services anticipate the company will achieve profitability this fiscal year, with earnings per share forecast at $3.30. Management’s operating strategy and the timing of major product launches are central to these expectations.
Balance sheet and competitive positioning
DA Davidson characterized recent market moves that followed announcements about a major technology competitor as a "deep overreaction," noting Take-Two’s advantage in owning established, fan-favorite intellectual property that competing firms cannot easily replicate. The firm pointed to a capital structure featuring a moderate level of debt and liquid assets that exceed short-term obligations as evidence of financial resilience.
Management view on generative AI and competitive risk
Take-Two’s chief executive described the company’s approach to generative artificial intelligence as pragmatic and implementation-focused, with hundreds of pilots and deployments across the business intended to boost efficiency and lower costs. Management derided comparisons between a rival’s world-model technology and traditional game engines, saying it is "too early for Genie to even be compared to a game engine" and describing the rival output as "more like a procedurally generated interactive video at this point."
Recent earnings and other analyst reactions
In its fiscal third quarter of 2026, Take-Two reported earnings per share of $1.23, beating consensus estimates of $0.83. Revenue for the quarter came in at $1.76 billion, ahead of the $1.59 billion that had been expected, with the upside driven by strong results across the company’s primary franchises.
Following the quarterly release, several brokerages left or adjusted their ratings and targets. Oppenheimer maintained an Outperform rating with a $265 price target. Goldman Sachs revised its target to $270 from $280 and kept a Buy rating, citing solid bookings and a raised full-year guide. BofA Securities reiterated its Buy rating and held a $295 price target, viewing recent share weakness as an attractive entry point amid concerns related to an external AI model.
Market performance and investor interest
Despite short-term turbulence, Take-Two has delivered a total return of 15.6% over the past year. The variety of analyst perspectives and the company’s confirmed product roadmap have kept investor attention focused on both near-term marketing cadence and the longer-term revenue potential tied to major releases.
Note: Market and analyst figures cited above reflect the available company disclosures and tracked analyst estimates referenced in the reporting.