Take-Two Q1 results include net bookings ahead of guidance, a slight increase in revenue, and cancellation of unannounced "new core IP" game

Take-Two's Q1 results surpassed expectations, driven by strong performance of NBA 2K6 and the Grand Theft Auto series supported by Zynga's mobile portfolio. The company maintained its guidance of $8-8.2 billion in net bookings for the year. However, a $43.4 million revenue impairment was recorded due to the cancellation of an unannounced game from a third-party developer, which contributed to a significant increase in net loss year-over-year.

Chief Accounting Officer Hannah Sage revealed that the canceled title was one of the three core new IPs the firm had mentioned in its FY 2026 report, leaving only two confirmed new IPs in development. CEO Strauss Zelnick described GTA 6 pre-orders as unprecedented, but declined to share details. The firm highlighted better-than-expected performance from NBA 2K and GTA, with GTA 5 having sold over 230 million units.

Net bookings were primarily driven by GTA and NBA 2K, accounting for 37% of the projected net bookings, followed by Zynga and 2K. Total recurring consumer spending (RCS) increased by 3% for the quarter, beating guidance of a 3% decline. Mobile RCS declined by 7%, while engaging activities such as average daily active users and MyCAREER Daily Active Users saw significant increases.

The company remains optimistic about FY27, projecting milestone achievements through live-service enhancements, franchise extensions, new IPs, and international expansion.