Take-Two Interactive Software, Inc. (TTWO), headquartered in New York, is a leading developer, publisher, and seller of interactive entertainment solutions. Valued at $32.7 billion by market cap, the company creates games through its labels, Rockstar Games, 2K, Private Division, and Social Point. The leading video game publisher is expected to announce its fiscal third-quarter earnings for 2025 after the market closes on Thursday, Feb. 6.
Ahead of the event, analysts expect TTWO to report a profit of $0.19 per share on a diluted basis, down 36.7% from $0.30 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect TTWO to report EPS of $0.99, up 8.8% from $0.91 in fiscal 2024. Its EPS is expected to rise 485.9% year over year to $5.80 in fiscal 2026.
TTWO stock has underperformed the S&P 500’s ($SPX) 26.5% gains over the past 52 weeks, with shares up 16.2% during this period. Similarly, it underperformed the Communication Services Select Sector SPDR Fund’s (XLC) 33.5% gains over the same time frame.
TTWO’s declining bottom line, increasing competition in the gaming industry, and strained cash position have led to its underperformance.
On Nov. 6, TTWO shares closed up more than 1% after reporting its Q2 results. The company’s revenue stood at $1.4 billion, up 4.1% year over year. TTWO expects full-year revenue to be between $5.6 billion and $5.7 billion.
Analysts’ consensus opinion on TTWO stock is bullish, with a “Strong Buy” rating overall. Out of 24 analysts covering the stock, 19 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and three give a “Hold.” TTWO’s average analyst price target is $199.68, indicating a potential upside of 7.1% from the current levels.
