Redwood City, California-based Electronic Arts Inc. (EA) develops, markets, publishes, and delivers games, content, and services for consoles, PCs, mobile phones, and tablets worldwide. With a market cap of $43.7 billion, Electronic Arts distributes its products through multiple distribution channels as well as directly to consumers through its online portals.
While the gaming giant has slightly lagged behind the broader market over the past year, it has significantly outperformed in 2025. EA stock has surged 14% over the past 52 weeks and 15.6% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 16.1% gains over the past year and 9.7% returns in 2025.
However, the stock has notably underperformed the industry-focused VanEck Video Gaming and eSports ETF’s (ESPO) surge of 68% over the past year and 38.2% on a YTD basis.
Electronic Arts had a resilient start to fiscal 2026, the company’s stock prices shot up 5.7% in a single trading session following the release of its Q1 results on Jul. 29. Driven by growth in full game revenues, the company’s overall topline for the quarter inched up 66 bps year-over-year to $1.67 billion, surpassing the consensus estimates by a notable 4.7%. Meanwhile, the company reported a 28.2% year-over-year decline in net income to $201 million, but it came ahead of Street expectations.
Further, the company expects to observe a significant sequential growth in net bookings and revenues. In Q2, the company expects to register between $1.8 billion - $1.9 billion in net bookings, up from $1.3 billion in Q1. At the same time, its net revenues are expected to reach approximately $1.75 billion to $1.85 billion in Q2.
For the full fiscal 2026, ending in March, analysts expect EA to deliver an EPS of $6.16, up 27% year-over-year. The company has a mixed earnings surprise history. While it surpassed the Street’s bottom-line estimates thrice over the past four quarters, it missed the projections on one other occasion.
The stock has a consensus “Moderate Buy” rating overall. Of the 28 analysts covering the stock, opinions include 10 “Strong Buys,” two “Moderate Buys,” and 16 “Holds.”
This configuration is slightly more optimistic than two months ago, when eight analysts gave “Strong Buy” recommendations.
On Aug. 12, DA Davidson analyst Wyatt Swanson reiterated a “Neutral” rating on EA stock and raised the price target from $150 to $160.
As of writing, EA’s mean price target of $173.46 represents a modest 2.5% premium to current price levels. Meanwhile, the street-high target of $210 suggests a notable 24.1% upside potential.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
