Take Two Interactive Software (TTWO) Posts US$92.9m Quarterly Loss Testing Bullish Margin Narrative

How Take-Two Interactive Software (TTWO) Landed This Quarter

Take-Two Interactive Software (TTWO) has reported Q3 2026 revenue of US$1.7b with a basic EPS loss of US$0.50, alongside trailing twelve month revenue of US$6.6b and a basic EPS loss of US$21.81. The company has seen quarterly revenue move from US$1.36b in Q3 2025 to US$1.58b in Q4 2025, US$1.50b in Q1 2026, US$1.77b in Q2 2026 and now US$1.70b in Q3 2026. Over the same stretch, basic EPS ranged from a loss of US$0.71 to a loss of US$21.08 and now a loss of US$0.50, framing a set of results where the top line is sizeable but profitability and margins remain under pressure.

With the headline numbers on the table, the next step is to see how this mix of solid revenue scale and ongoing losses lines up with the dominant market narratives around Take-Two and its path to stronger margins.

Curious how numbers become stories that shape markets? Explore Community Narratives

US$92.9m Loss On US$1.7b Sales

• Q3 2026 net income, excluding extra items, was a loss of US$92.9m on US$1.7b of revenue, compared with losses of US$133.9m on US$1.8b of revenue in Q2 2026 and US$11.9m on US$1.5b of revenue in Q1 2026.
• What stands out for a bullish view is that, over the last twelve months, revenue of US$6.6b sits alongside a trailing net income loss of US$4.0b. This indicates that the scale of the business is already there, and supporters often argue that if Take Two can align its cost base with this revenue, the path to the forecast earnings growth of 74.75% per year becomes more realistic, even though the data currently shows ongoing losses and no confirmed turn to profitability yet.
  • Trailing twelve month basic EPS is a loss of US$21.81, which heavily underlines how much earnings would need to change to match those optimistic growth forecasts.
  • The reported loss growth rate of 62.9% per year over the past five years pushes investors to test any bullish claim against the fact that the company is still firmly loss making on recent history.

To see how bullish and cautious investors are thinking through these swings in profitability, and where they say the turning point might come, it is worth reading the full range of views around Take Two's future cash generation and cost base. 📊 Read the full Take-Two Interactive Software Consensus Narrative.

Losses Still Large On A 12 Month View

• On a trailing twelve month basis to Q3 2026, Take Two recorded revenue of US$6.6b and a net income loss, excluding extra items, of US$4.0b, compared with US$5.5b of revenue and a US$3.6b loss in the twelve months to Q2 2025.
• Critics highlight that these trailing figures support a bearish stance, because even as revenue over the last twelve months is higher than the US$5.5b to US$5.6b range seen in earlier periods, losses remain in the multi billion dollar range. As a result, any thesis that the business is already close to breakeven is hard to square with a US$4.0b loss and a trailing basic EPS loss of US$21.81.
  • The reported 62.9% annual growth rate in losses over five years backs up the concern that spending and charges have outpaced revenue gains over a long stretch, not just in a single period.
  • Because the company is still unprofitable on this basis, the forecast that it could become profitable within three years is purely forward looking in the data and is not yet reflected in the historical numbers provided.

Premium P/S At 5.7x With Mixed Signals

• The shares trade on a P/S of 5.7x, compared with 1.3x for the US Entertainment industry and 4.6x for peers. The current share price of US$200.76 sits about 8.5% below the cited DCF fair value of roughly US$219.36 and below the analyst price target of US$277.99, which is around 38.5% above the current price.
• Supporters argue that these valuation and forecast numbers lean toward a bullish stance, because the higher P/S ratio and the gap between the US$200.76 share price, the DCF fair value and the US$277.99 analyst target are consistent with the idea that the market expects the forecast revenue growth of 12.3% per year and strong projected earnings growth to materialise, even though the trailing results still show substantial losses.
  • The fact that the stock trades at a premium to industry and peer P/S ratios while remaining below the DCF fair value in the data suggests investors are already paying up for growth, but not to the level implied by that fair value estimate.
  • At the same time, the ongoing trailing loss of US$4.0b provides a clear reference point for anyone questioning whether paying a premium multiple today is comfortable before profitability, as forecast in the data,

    Next Steps

    Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Take-Two Interactive Software's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

    See What Else Is Out There

    Take Two combines US$6.6b in trailing revenue with a US$4.0b net loss and a trailing basic EPS loss of US$21.81, so profitability remains a clear weak spot.

    If you want ideas where earnings and revenue look more consistent through different cycles, check out our stable growth stocks screener (2190 results) to focus on companies with steadier performance than this kind of multibillion dollar loss profile.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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