Shareholders might have noticed that Take-Two Interactive Software, Inc. (NASDAQ:TTWO) filed its yearly result this time last week. The early response was not positive, with shares down 2.7% to US$226 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at US$5.6b, statutory losses exploded to US$25.58 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, Take-Two Interactive Software's 23 analysts are now forecasting revenues of US$6.00b in 2026. This would be a satisfactory 6.5% improvement in revenue compared to the last 12 months. Per-share statutory losses are expected to explode, reaching US$2.55 per share. Before this earnings report, the analysts had been forecasting revenues of US$7.79b and earnings per share (EPS) of US$0.96 in 2026. So we can see that the consensus has become notably more bearish on Take-Two Interactive Software's outlook following these results, with a pretty serious reduction to next year's revenue estimates. Furthermore, they expect the business to be loss-making next year, compared to their previous calls for a profit.

See our latest analysis for Take-Two Interactive Software

The average price target lifted 7.5% to US$243, clearly signalling that the weaker revenue and EPS outlook are not expected to weigh on the stock over the longer term. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Take-Two Interactive Software analyst has a price target of US$275 per share, while the most pessimistic values it at US$137. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Take-Two Interactive Software shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Take-Two Interactive Software's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 6.5% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.8% annually. Factoring in the forecast slowdown in growth, it seems obvious that Take-Two Interactive Software is also expected to grow slower than other industry participants.