Electronic Arts Inc. (EA), headquartered in Redwood City, California, is a leading provider of interactive entertainment that develops, markets, publishes, and delivers games, content, and services for game consoles, PCs, mobile phones, and tablets. Valued at $36.9 billion by market cap, the company operates through various genres, like sports, racing, action, first-person shooters, and more, featuring renowned franchises such as EA SPORTS FC, Battlefield, NFL, and F1. The leading video game company is expected to announce its fiscal third-quarter earnings for 2025 on Tuesday, Feb. 4.
Ahead of the event, analysts expect EA to report a profit of $2.89 per share on a diluted basis, up 15.1% from $2.51 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect EA to report EPS of $5.83, up 12.1% from $5.20 in fiscal 2024. Its EPS is expected to rise 11.5% year over year to $6.50 in fiscal 2026.
EA stock has underperformed the S&P 500’s ($SPX) 21.8% gains over the past 52 weeks, with shares up 2.3% during this period. Similarly, it underperformed the Communication Services Select Sector SPDR Fund’s (XLC) 30% gains over the same time frame.
EA’s underperformance can be attributed to intensified competition in the gaming industry, challenges with player engagement and retention across some franchises, and weaker-than-expected monetization in its freemium models. In addition, EA’s weak performance can also be linked to slow growth in traditional game sales.
On Oct. 29, EA shares closed up by 1% after reporting its Q2 results. Its adjusted EPS of $2.15 surpassed Wall Street expectations of $2.03. The company’s revenue stood at $2 billion, up 5.8% year over year. EA expects full-year adjusted EPS to be between $3.82 and $4.33, and it expects revenue to be between $7.4 billion and $7.7 billion.
Analysts’ consensus opinion on EA stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 25 analysts covering the stock, 12 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and 11 give a “Hold.” EA’s average analyst price target is $165.25, indicating a potential upside of 17.3% from the current levels.
