Take-Two Interactive Software, Inc. stock research
FY2026 Q3
Take-Two Interactive Software (TTWO) Gross Margin — Quarter Ended Dec 31, 2025
Revenue decreased compared to the immediate prior quarter, while gross profit also declined and cost of revenue fell proportionally less, resulting in a gross margin that was slightly higher than the prior quarter but narrowly lower than the same quarter one year earlier. The relationship among revenue, gross profit, cost of revenue, and gross margin shows that the margin improved modestly from the preceding quarter due to a smaller relative decline in gross profit compared to revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2026 Q3
Revenue decreased compared to the immediate prior quarter, while gross profit also declined and cost of revenue fell proportionally less, resulting in a gross margin that was slightly higher than the prior quarter but narrowly lower than the same quarter one year earlier. The relationship among revenue, gross profit, cost of revenue, and gross margin shows that the margin improved modestly from the preceding quarter due to a smaller relative decline in gross profit compared to revenue.
- The strongest observable margin driver is the gross margin itself, which improved sequentially from the prior quarter to the current quarter. This improvement occurred despite a decline in both revenue and gross profit, indicating that cost of revenue decreased at a slightly faster rate relative to revenue on a sequential basis.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, while gross margin was slightly higher. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.7%
Gross profit
$945.5M
Revenue
$1.7B
Cost of revenue
$753.5M
Quarter-over-quarter change
+0.4 pts
Year-over-year change
-0.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $1.6B | $803.3M | $779.2M | 50.8% |
| Jun 30, 2025 | $1.5B | $945.0M | $558.8M | 62.8% |
| Sep 30, 2025 | $1.8B | $980.5M | $793.3M | 55.3% |
| Dec 31, 2025 | $1.7B | $945.5M | $753.5M | 55.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+0.4 pts
Year-over-year change
Dec 31, 2024
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the gross margin itself, which improved sequentially from the prior quarter to the current quarter. This improvement occurred despite a decline in both revenue and gross profit, indicating that cost of revenue decreased at a slightly faster rate relative to revenue on a sequential basis.
Compared to the immediately preceding quarter, revenue and gross profit were lower, while gross margin was slightly higher. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin was slightly lower.
Monitor the trend in cost of revenue relative to revenue, as the gross margin has shown mixed movement versus both the prior quarter and the year-ago period.