Take-Two Interactive Faces Stock Volatility After Q2 Results
Take-Two Interactive Software, Inc. experienced a significant stock price decline of 8.1% on November 6, 2023, following the release of its Q2 financial results. The downturn is largely attributed to the announcement regarding the delay of the highly anticipated Grand Theft Auto VI, despite the company reporting impressive overall performance metrics.
Valued at approximately $43.4 billion, Take-Two is a prominent developer and publisher of video games, known for franchises such as Grand Theft Auto, LA Noire, and Max Payne. Over the past year, the company’s stock has outperformed the broader market, with a year-to-date increase of 27.7% and a 29.5% rise over the last 52 weeks. In contrast, the S&P 500 Index has shown gains of 14.5% in 2025 and 13.2% over the past year. However, Take-Two’s performance has fallen short when compared to the VanEck Video Gaming and eSports ETF, which has surged 32.7% this year and 38.9% over the previous 12 months.
Despite the recent stock drop, Take-Two’s quarterly results showcased strong financial health. The company reported revenue of $1.8 billion, reflecting a year-over-year increase of 31.1%, significantly exceeding analysts’ expectations. Additionally, it recorded a non-GAAP EBITDA of $116.7 million. Operational cash flow also improved considerably, reaching $83.7 million for the first two quarters of fiscal 2026, up from a negative $319.4 million during the same period last year.
Looking ahead, analysts predict Take-Two will achieve an adjusted earnings per share (EPS) of $1.46 for the full fiscal year ending in March 2026, marking a remarkable increase of 160.7% year-over-year. The company has maintained a solid earnings surprise history, surpassing bottom-line projections for four consecutive quarters.
Analyst Sentiment and Price Targets
Among the 27 analysts covering Take-Two stock, the consensus rating remains a “Strong Buy,” supported by 21 “Strong Buys,” three “Moderate Buys,” and three “Holds.” This configuration has remained stable over the past three months. On November 7, UBS analyst Christopher Schoell reiterated a “Buy” rating, raising the price target from $285 to $292. The mean price target of $276.37 indicates a 17.6% premium compared to current price levels, while the highest target of $316 suggests a potential upside of 34.5%.
As Take-Two navigates this period of volatility, investors will closely monitor the company’s strategic decisions surrounding the launch of Grand Theft Auto VI and how these decisions may impact future performance in the competitive gaming market.
