Valued at a market cap of $38.3 billion, Electronic Arts Inc. (EA) is a leading American video game company that develops, publishes, and distributes interactive entertainment content for consoles, PCs, and mobile devices. It is headquartered in Redwood City, California, and is one of the largest and most influential players in the gaming industry. The company is scheduled to announce its fiscal Q1 earnings for 2025 after the market closes on Tuesday, July 29.
Ahead of this event, analysts expect this electronic gaming company to report a loss of $0.38 per share, down 522.2% from a profit of $0.09 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion.
For fiscal 2025, analysts expect EA to report a profit of $6.14 per share, up 26.6% from $4.85 in fiscal 2024.
Shares of EA have soared almost 8.6% over the past 52 weeks, trailing both the S&P 500 Index's ($SPX) 12.3% gain, and the Communication Services Select Sector SPDR Fund’s (XLC) 22.7% rise over the same time frame.
On May 6, EA released its Q4 2025 earnings report, and its shares rose marginally in the following trading session. The company reported net revenue of $1.78 billion, down 5% year-over-year, and net bookings of $1.67 billion, a 14% decline, reflecting weaker-than-expected performance in live services and game releases.
Despite the revenue drop, EA posted a strong recovery in profitability, with net income reaching $182 million compared to a loss a year earlier, and gross margins improving to nearly 80%. The company generated $580 million in operating cash flow during the quarter and returned $376 million to shareholders via buybacks and dividends.
Wall Street analysts are moderately optimistic about Electronic Arts’ stock, with a "Moderate Buy" rating overall. Among 26 analysts covering the stock, nine recommend "Strong Buy," two suggest a “Moderate Buy,” and 15 advise “Hold.” Its mean price target of $168.40 represents a 10.3% upswing from the current market prices.
On the date of publication, Kritika Sarmah 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.
