Q1 Fiscal Year 2027 Prepared Remarks

Take-Two Interactive’s fiscal year 2027 first-quarter results demonstrate a strong start to the year, characterized by robust performance across its core franchises and a strategic focus on upcoming major releases. The company reported net bookings of approximately $1.39 billion for the quarter ending June 30, 2026, exceeding the high end of its guidance. This success was primarily driven by the sustained popularity of the Grand Theft Auto series and the NBA 2K franchise, which saw a 9% year-over-year increase in unit sales for its latest iteration.

The company maintains a positive outlook for the remainder of the fiscal year, reiterating its net bookings guidance of $8 billion to $8.2 billion. This projection is anchored by the highly anticipated November 19, 2026, launch of Grand Theft Auto VI, which has already generated significant pre-order interest. Management expects this release to serve as a major inflection point, establishing a new scale of operations and driving long-term cash flow. While the mobile segment experienced a projected decline, key titles such as Toon Blast and Words With Friends continued to show resilience, and the company’s mobile division remains a critical component of its broader portfolio strategy.

Financial discipline remains a priority, with the company forecasting operating cash flow in excess of $1 billion for the fiscal year. Despite a $43 million impairment charge related to a cancelled third-party project, operating expenses were managed effectively through the strategic timing of marketing expenditures. Looking forward, the company plans to leverage its diverse development pipeline, including upcoming content for Borderlands 4, Civilization VII, and WWE 2K26, to sustain engagement and support its long-term growth objectives.