TD Cowen has reaffirmed a Buy recommendation on Take-Two Interactive and kept a $284.00 price objective after the publisher released its fiscal third-quarter 2026 results. That target equates to roughly a 40% upside from the stock's then-prevailing price of $202.34, which had slid nearly 13% over the prior week despite the company reporting positive results.
The quarter's performance was driven by bookings that surpassed both the top end of Take-Two's guidance range and sell-side estimates. The firm attributed the outperformance to strong demand for its mobile portfolio and the NBA 2K franchise. Take-Two reported revenue growth of 20.3% over the trailing twelve months, a metric TD Cowen highlighted when updating its model.
Management raised its fiscal 2026 guidance, citing the quarter's stronger-than-expected results and an outlook that anticipates lower operating expenses for the remainder of the fiscal year. In response, TD Cowen increased its fiscal 2026 revenue forecast from $6.49 billion to $6.68 billion. That revised revenue view implies 18% year-over-year growth and places TD Cowen's estimate at the high end of the company-provided guidance range.
On profitability, TD Cowen boosted its adjusted earnings-per-share forecast for fiscal 2026 to $3.81 from $3.28. The firm described this change as reflecting a 51% year-over-year increase based on both the strength of third-quarter results and the expectation of lower operating expenses for the balance of the year.
Take-Two's reported fiscal third-quarter results showed earnings per share of $1.23, well above the analyst consensus of $0.83. Revenue for the quarter came in at $1.76 billion, topping the anticipated $1.59 billion. The company cited contributions from titles including NBA 2K26, GTA Online and Match Factory as central to these outcomes.
Other broker reactions after the earnings release aligned with a broadly constructive tone. DA Davidson reiterated a Buy rating and set a $300.00 price target, pointing to net bookings that exceeded consensus estimates by 11%. Oppenheimer kept an Outperform rating and a $265.00 price objective while noting a 23% year-over-year increase in recurrent consumer spending. Goldman Sachs trimmed its price target to $270.00 from $280.00 but maintained a Buy rating on the basis of solid quarterly results and the company's raised full-year guidance. BofA Securities also reiterated a Buy rating with a $295.00 target, characterizing the present period as an attractive buying opportunity while acknowledging concerns tied to Google's Genie 3 AI model.
Collectively, these analyst moves reflect a period in which Take-Two posted strong financial metrics, saw positive reactions from multiple research firms, and benefited from elevated bookings and revenue growth. At the same time, the near-term share-price decline noted earlier underscores market volatility even in the face of upside earnings surprises.
Summary
TD Cowen kept a Buy rating and $284.00 price target on Take-Two after the company's fiscal Q3 2026 results beat guidance and estimates. The firm raised fiscal 2026 revenue and adjusted EPS forecasts, citing strong bookings from mobile games and NBA 2K, plus management's raised guidance and lower expected operating expenses.
Key points
- TD Cowen raised fiscal 2026 revenue to $6.68 billion (from $6.49 billion) and adjusted EPS to $3.81 (from $3.28), reflecting an 18% revenue increase and a 51% EPS rise year over year.
- Q3 results delivered EPS of $1.23 and revenue of $1.76 billion, both beating consensus; outperformance attributed to NBA 2K26, GTA Online, Match Factory, and mobile titles.
- Analyst sentiment across brokers was largely positive, with multiple firms reiterating Buy/Outperform ratings and adjusting price targets following the quarter.
Risks and uncertainties
- Share-price volatility: the stock fell nearly 13% over the prior week despite strong quarterly results, indicating market sentiment can move independently of reported fundamentals.
- Competitive and external concerns: BofA cited worries related to Google's Genie 3 AI model, reflecting potential external competitive or technological risks noted by at least one analyst.
- Guidance and expense assumptions: updates to the company's full-year guidance and expectations for lower operating expenses were central to analyst revisions, meaning changes to those assumptions could affect forward forecasts.