In this week’s earnings recap, we turn our attention to the Technology, Media, and Telecommunications (TMT) sector, where two of the industry’s top players delivered impressive results. In this blog post, we’ll dive into the key takeaways from Goldman Sachs’ coverage of Take-Two Interactive (TTWO) and SkyDance Media (SKYD).

Take-Two Interactive (TTWO)

Take-Two Interactive delivered a strong quarter, with bookings outlook for FY27 reiterated with a focus on the highly anticipated launch of Grand Theft Auto VI (GTA VI). Pre-orders for the game are tracking well above initial expectations, with a +3% increase in stock price pre-market. Management also provided updates on the company’s mobile monetization initiatives, which are progressing as expected, and highlighted a meaningful margin/bottom-line benefit.

However, the company did face some challenges, including a -9% decline in Recurrent Consumer Spend (RCS) during the quarter, primarily due to weakness in NBA 2K and Mobile. Management expects an acceleration in 2H FY27, but reiterated FY27 guidance until post-launch data is available.

SkyDance Media (SKYD)

SkyDance Media delivered an impressive quarter, with Adjusted EBITDA beating consensus estimates. The company’s TV Media segment performed well, with synergies reiterated, while the DTC and Studios segments missed expectations. Despite this, the company reiterated its 2026 standalone EBITDA and provided guidance for 2027 pro-forma EBITDA growth.

Overall, the TMT sector continues to impress, with Take-Two Interactive and SkyDance Media leading the way. These two companies are demonstrating the potential for growth and success in the industry, and investors would do well to keep a close eye on their performance.