Take-Two reports 28% YoY net bookings growth to $1.76B, raises annual forecast, and sees TTWO shares rise 5%+ after hours, reflecting continued strength in gaming sector.
Take-Two Interactive Software, the publisher behind blockbuster franchises like Grand Theft Auto and NBA 2K, delivered strong fiscal third-quarter results that exceeded analyst expectations and prompted the company to raise its annual bookings forecast. The gaming giant reported net bookings of $1.76 billion for the quarter, representing a 28% year-over-year increase compared to $1.58 billion in the same period last year. Net revenue grew 25% to $1.7 billion, demonstrating the continued momentum in Take-Two's business.
The positive results sent Take-Two's stock (TTWO) up more than 5% in after-hours trading, reflecting investor confidence in the company's growth trajectory. The stronger-than-expected performance comes as the gaming industry continues to show resilience despite broader economic uncertainties.
Industry Context and Market Performance
Take-Two's results are part of a broader trend of strong performance across the gaming sector. Electronic Arts also reported impressive numbers, with Q3 net bookings up 38% year-over-year to $3.05 billion, driven by strong sales of Battlefield 6. The company posted net income of $88 million, though this was down from $293 million in the same quarter last year.
Nintendo provided additional context for the console gaming market, reporting that the original Switch has now sold 155.37 million units since its March 2017 launch through December 2025. This milestone surpasses the Nintendo DS's 154.02 million units, making the Switch Nintendo's best-selling console to date. The company maintained its forecast of 19 million Switch 2 sales for fiscal 2026, allaying some concerns about console momentum.
Strategic Implications
Take-Two's decision to raise its annual bookings forecast signals management confidence in sustained demand for its gaming portfolio. The company's performance underscores the growing importance of recurring revenue streams through live services, in-game purchases, and subscription offerings that have become central to modern gaming business models.
The gaming industry's continued strength comes as other tech sectors face headwinds. While companies like PayPal are undergoing leadership transitions and AMD is seeing stock pressure despite strong revenue growth, gaming publishers are demonstrating robust consumer demand and pricing power.
Looking Ahead
As Take-Two enters the critical holiday quarter, investors will be watching for continued execution on its growth strategy. The company's ability to maintain momentum will depend on its pipeline of releases, the performance of existing live service games, and its success in monetizing its intellectual property across multiple platforms and formats.
The gaming sector's resilience suggests that interactive entertainment remains a bright spot in the broader technology landscape, with companies like Take-Two well-positioned to capitalize on the ongoing shift toward digital distribution and ongoing player engagement.
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