TTWO · Q1 2027 Earnings

Cautious

Take-Two Interactive

Reported August 7, 2026

30-second summary

Take-Two beat the Q1 top-line guide (revenue $1.534B vs $1.45–1.50B, net bookings $1.386B vs $1.32–1.37B) — but net bookings still declined 3% YoY (-2.6% vs $1.423B) and revenue grew only +2.0% YoY. More importantly, the FY2027 framework got worse in two places: Non-GAAP EBITDA cut to $993–1,053M from $1,013–1,070M (-$20M/-$17M) and CapEx raised 45% to ~$290M from ~$200M. Revenue and EPS guides for FY27 were reaffirmed and the November 19 GTA VI date held, but the combined EBITDA cut plus CapEx step-up removes roughly $110M of FY27 free cash flow on a first-order basis versus 90 days ago — the first negative revision to the "new baseline" narrative that has otherwise been raised in every print for two years.

Headline numbers

EPS

Q1 FY2027

$-0.18

+14.3% vs est.

Revenue

Q1 FY2027

$1.53B

+1.9% YoY

+12.8% vs est.

Gross margin

Q1 FY2027

57.5%

Operating margin

Q1 FY2027

-2.3%

Key financials

Q1 FY2027

Metric	Q1 FY2027	Q1 FY2026	YoY	Q4 FY2026	QoQ
Revenue	$1.53B	$1.50B	+2.0%	$1.68B	-8.7%
EPS	$-0.18	$-0.07	-157.1%	$-0.32	+43.8%
Gross margin	57.5%	62.8%	-530bps	55.8%	+170bps
Operating margin	-2.3%	1.4%	-370bps	0.6%	-290bps

Guidance

Guidance is issued for both next quarter and the full year. Both may appear below.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q1 FY2027	$1.45 to $1.50 billion	$1.534 billion	+$0.034 to $0.084 billion above guide	Beat
EPS (GAAP)	Q1 FY2027	$(0.23) to $(0.15)	$(0.18)	+$0.05 above guidance midpoint	Beat
Net Bookings	Q1 FY2027	$1.32 to $1.37 billion	$1.3859 billion	+$0.0159 billion above guide	Beat
Non-GAAP EBITDA	Q1 FY2027	$155 to $179 million	$167.0 million	In-line to midpoint	Beat

New guidance

Metric	Period	Guide	YoY
Revenue	Q2 FY2027	$1.42 to $1.47 billion	-19.8% to -16.9% YoY
EPS (GAAP)	Q2 FY2027	$(0.84) to $(0.75)	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Non-GAAP EBITDA	FY2027	$1,013 to $1,070 million	$993 to $1,053 million	-$20M low end, -$17M high end	Lowered
Capital Expenditures	FY2027	Approximately $200 million	Approximately $290 million	+$90 million	Raised

Reaffirmed unchanged this quarter: Net Bookings ($8.0 to $8.2 billion), Revenue ($7.9 to $8.1 billion), EPS (GAAP) ($0.55 to $0.75), Operating Cash Flow (over $1,000 million)

Segment performance

Q1 FY2027

Segment	Q1 FY2027	Q1 FY2026	YoY
Game revenue	$1.423B	—	+2.9%
Advertising revenue	$0.111B	—	-8.4%
Mobile platform	$0.762B	—	-4.9%
Console platform	$0.641B	—	+16.4%
Recurrent consumer spending	$1.29B	—	+2.7%

Platform metrics

Q1 FY2027

Segment	Q1 FY2027	Q1 FY2026	YoY
Net Bookings	$1,385.9 million	$1,423.1M	—
Recurrent Consumer Spending (% of Net Bookings)	84%	—	—
Recurrent Consumer Spending (% of Net Revenue)	84%	—	—
Digital online (% of Net Revenue)	98%	—	—
FY2027 Net Bookings guidance	$8,000 to $8,200 million	—	—

Profitability

Q1 FY2027

Segment	Q1 FY2027	Q1 FY2026	YoY
Non-GAAP EBITDA	$167.0 million	$225.5M	—
FY2027 Non-GAAP EBITDA guidance	$993 to $1,053 million	—	—
Operating cash flow (FY2027 guidance)	over $1,000 million	—	—

Other KPIs

Q1 FY2027

Segment	Q1 FY2027	Q1 FY2026	YoY
United States	$0.92B	$0.9B	+2.2%
International	$0.614B	$0.603B	+1.8%

Management tone

No transcript available for this print; tone shift analysis skipped. The narrative arc from Q3 FY2026 ("bridge year re-rated again") → Q4 FY2026 ("FY2027 is the new baseline") now enters Q1 FY2027 with the first negative revision to that baseline framework — the EBITDA cut and CapEx raise are the only voice management has spoken with this quarter, and they say the FY2027 profitability profile is roughly $110M weaker on a first-order basis than presented 90 days ago.

Answers to last quarter's watch list

GTA VI marketing cadence and any production milestone disclosure. No specific marketing milestone or pre-order disclosure in the press release. The November 19, 2026 date held — Take-Two's qualitative statement cited "excitement around the November 19th launch of Grand Theft Auto VI" — and the reaffirmed FY2027 revenue and net bookings guides implicitly re-endorse the date. Without transcript commentary the marketing-ramp signal is unresolved.

Continue monitoring

Q1 FY2027 net bookings vs. the $1.32–1.37B guide and RCS -3% guide. Both cleared the guide: net bookings $1.386B (+$16M above the high end, though still -3% YoY), and RCS bookings -1% against the -3% guide (~+200bps outperformance). Live-services intensity into the pre-launch lull is running modestly ahead of plan, though FY2027 net bookings was reaffirmed rather than raised — the beat was banked, not extrapolated. Status: Resolved positively vs guide, but the YoY decline in both total and RCS bookings tempers the read.

DTC margin quantification. No DTC-specific basis-point or dollar attribution was disclosed on the print. This is now the fourth consecutive quarter this line item has been an open watch — and this quarter it matters more, because the $20M EBITDA cut against unchanged revenue means the mix/margin arithmetic that DTC was supposed to underwrite has moved in the wrong direction.

Continue monitoring

Mobile growth in Q1 vs the implied FY2027 trajectory. Mobile revenue declined 4.9% YoY, confirming the FY2027 framework's assumption of mobile softness rather than surprising to the upside. The "upside-surprise optionality" from mobile that management preserved via the three-year pipeline discipline is now used up rather than banked — mobile is a headwind, not a hedge, into GTA VI.

Resolved negatively

Net cash position progression. The press release did not disclose a specific net debt trajectory update. The $90M CapEx increase and $20M EBITDA cut together reduce FY2027 free cash generation capacity by roughly $110M on a first-order basis vs the Q4 framework — pushing out the timing of the "net cash by end of FY2027" commitment without withdrawing it.

Continue monitoring

What to watch into next quarter

Explanation for the FY2027 EBITDA cut and $90M CapEx raise. The Q2 print (five months pre-GTA VI) is the last opportunity for management to attribute the $20M EBITDA reduction and $90M CapEx step-up to specific line items (marketing spend, DTC infrastructure, Rockstar hiring, tech stack). Without a breakdown, the market will assume higher GTA VI launch investment — which needs to be recouped in FY2028.

Q2 FY2027 net bookings vs. the $1.62–1.67B guide. Q2 is the last quarter before the GTA VI launch. A print at or above the high end confirms live-services momentum is sustainably above pre-launch base rates; a low-end print would mean the FY2027 reaffirmed $8.0–8.2B net bookings target needs GTA VI to over-deliver.

Any softening of the November 19, 2026 GTA VI date. With three months left, any date-related language shift would force an immediate re-rating of the entire FY2027 baseline. The date holding is now table stakes, not upside.

DTC margin quantification. Four consecutive prints without a DTC dollar or basis-point attribution. If DTC is genuinely the FY2027 EBITDA leverage story, Q2 needs to show numbers.

Free cash flow trajectory vs the reaffirmed >$1.0B operating cash flow guide. With CapEx now ~$290M, FY2027 implied free cash flow is ~$710M vs ~$800M at Q4 — watch whether the operating cash flow line gets a corresponding raise at Q2 to preserve the FY2027 net-cash-by-year-end commitment.

Sources

Take-Two Interactive Q1 FY2027 earnings press release, SEC filing dated 2026-08-07: https://www.sec.gov/Archives/edgar/data/946581/000162828026054580/ttwo1q27earningsrelease.htm

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