Take-Two Interactive, the publisher of the NBA 2K and Grand Theft Auto video game franchises, reported fiscal Q3 earnings Tuesday afternoon that beat expectations—a counter to recent negative market sentiment.
The company reported total net revenue of $1.69 billion with a $92.9 million net loss ($0.50 per share). It raised its fiscal year revenue projection from $6.38-$6.48 billion to $6.55-$6.6 billion.
Analysts had estimated Take-Two’s quarterly loss per share to be $0.83 with projected total net revenue of $1.59 billion. The company had forecast total net revenue of $1.57 billion to $1.62 billion.
Shares jumped by about 4% in after-hours trading Tuesday to $220.50 per share. Before earnings, the company’s stock price had fallen about 17% in a month.
Take-Two’s circumstances have whiplashed under CEO Strauss Zelnick in recent years. Like many other gaming companies that appeared to have recovered from a post-COVID pandemic pullback, Take-Two has seen its stock price trend downward to begin 2026 because of AI-related investor concerns.
Last week, Google released a beta version of Genie 3, an AI program that generates video game worlds requested by users. Even though the software is extremely limited right now—people can explore their AI worlds for only one minute—investors worry the service may eventually diminish the influence of major studios. The Genie 3 beta is available exclusively to Google AI Ultra subscribers who pay $250 per month for access, but Google has made it available to certain tech publications to gain publicity.
Take-Two has a Grand Theft Auto-sized gap in its earnings. The best-selling franchise was delayed from last year to this November. The company hasn’t released a Grand Theft Auto game since two years after Zelnick became CEO in 2011.
Additionally, Take-Two faces attention economy competition and slowing in-game revenue growth.