GTA Remains on Track

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M

Idea

August 7, 2026 08:00 PM GMT

Take-Two Interactive Software | North America

Morgan Stanley & Co. LLC

Matthew Cost

Equity Analyst

GTA Remains on Track

Brian Nowak, CFA

Equity Analyst

With a strong 1Q in the books and GTA confirmed for November,

we remain bullish on TTWO as the run-up to major launches is a

tailwind for publisher stocks. We also continue to see significant

operating leverage potential, if GTA beats our base case

estimates.

Cela VanLieshout

Research Associate

Julian Herrera

Research Associate

Gregory Gao

Research Associate

TTWO Delivered F1Q Strong Results and Reconfirmed a November Launch for

GTA VI... TTWO delivered strong F1Q results, with bookings/EPS 4%/10% above us,

driven by strong performance from NBA 2K and GTA. NBA 2K was a particular bright

spot, with NBA 2K26 unit sales up 9% y/y and RCS up 7%, supported by a 15%

increase in DAUs. GTA RCS grew 3%, while mobile declined 7% y/y as expected,

primarily reflecting a difficult compare for Color Block Jam. Management noted they

are not seeing broad consumer weakness in mobile. From a guidance perspective,

TTWO reiterated its prior FY27 outlook for bookings and EPS, driven by continued

positive trends and confidence in GTA VI's November 19 launch, where management

characterized early pre-orders as "unprecedented". The company also reiterated

expectations for >$1bn of operating cash flow and to reach a net cash position by

year-end.

Kavya A Narayanan

Research Associate

Nikhil Javeri

Research Associate

Take-Two Interactive Software (TTWO.O, TTWO US)

Internet | United States of America

Stock Rating

Industry View

Price target

Shr price, close (Aug 6, 2026)

Mkt cap, curr (mm)

52-Week Range

Overweight

Attractive

$280.00

$232.47

$43,752

$265.94-187.63

…And History Suggests Room for Earnings Upside and Share Outperformance

Still Ahead: Despite concerns intra-quarter, we are confident GTA will not be

delayed again and is just 3 months away. If GTA VI achieves similar penetration

levels to GTA V, that would imply 12% upside to our unit estimates (i.e. ~45mn total)

based on install base penetration.…