"Analysts are projecting 60% year-over-year earnings growth as the company emerges from its heavy investment cycle. Take-Two has absorbed over $9 billion in net losses across fiscal years 2023 through 2025 while developing GTA VI and other major titles. With those costs largely behind them, the company is positioned to convert that investment into revenue without proportional cost increases. CEO Strauss Zelnick reinforced this outlook on the recent earnings call, stating the company remains "highly confident that we'll achieve sequential increases in and record levels of net bookings in fiscal 2026 and 2027.""
"At $240.55, Take-Two trades at 28x forward earnings. At $300, shares would trade at roughly 35x forward earnings-a premium valuation, but reasonable for a company projecting 60% earnings growth and sitting on the most anticipated game release in over a decade. Several catalysts could push Take-Two to $300: GTA VI launch momentum: Grand Theft Auto V has sold over 210 million units. GTA VI launches November 2026, and Zelnick noted the "broad universe of console owners" represents a massive addressable market."
Take-Two delivered a strong 2025 with shares up about 36% from the 52-week low and trading near recent highs, driven by NBA 2K performance and anticipation for Grand Theft Auto VI, launching November 2026. The consensus price target is $277.40, implying roughly 15% upside, and 25 of 28 analysts rate the stock a buy or strong buy. Quarterly revenue rose 31% year-over-year. Analysts project 60% year-over-year earnings growth as the company exits a heavy investment cycle after absorbing over $9 billion in net losses across fiscal 2023–2025. Valuation sits at about 28x forward earnings, rising to roughly 35x at $300, supported by expected revenue conversion and multiple catalysts including GTA VI momentum and ongoing NBA 2K strength.
Read at 24/7 Wall St.
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