How did EA's Q4 2025 EPS forecast compare to past trends?

Electronic Arts' (EA) Q4 2025 EPS forecast of $0.54 reflects a **decline from the previous quarter's EPS** of $0.76, indicating a potential downturn in earnings. This trend is also evident when comparing the Q4 2025 EPS to the EPS in Q4 2023, which was $0.67. 1. **Analysis of Recent EPS Trends**: - EA's EPS has shown a seasonal fluctuation pattern, with higher earnings in the third quarter compared to the fourth quarter. - The current Q4 2025 EPS forecast of $0.54 is significantly lower than the Q3 2024 EPS of $0.76, suggesting a sharp decline in earnings at the end of the fiscal year. 2. **Comparison with Revenue Trends**: EA's revenue guidance for Q4 2025 is $1.76 billion, which is higher than the revenue in Q3 2024, indicating a potential for improved revenue performance despite the expected EPS decline. 3. **Market Analysts' Expectations**: Analysts have varied expectations for EA's future earnings. While some have increased their EPS estimates for FY2025, others have reduced their targets, reflecting a range of views on the company's financial performance. 4. **Historical Performance**: EA's historical performance shows that the company has exceeded earnings estimates in some quarters, as seen in Q2 2024, where the company reported earnings of $2.15 per share, surpassing the consensus estimate of $2.03. However, in other quarters, such as Q4 2024, the company missed revenue expectations. In conclusion, EA's Q4 2025 EPS forecast suggests a challenging period for the company, with earnings potentially declining from the immediate previous quarter. This trend should be monitored closely, considering the varied analyst expectations and the company's historical performance in meeting earnings targets.