Electronic Arts Announces NHL 26 and Battlefield 6, Boosting Stock with Solid Earnings Guidance and Share Buyback Plans.

Electronic Arts (EA) announced NHL 26 and Battlefield 6 releases, solid earnings guidance, and share buyback plans, boosting its stock by 6% over the past month. The company aims to improve profitability and operational efficiency, but macroeconomic pressures may impact forecasts. Analysts expect revenue to reach $8.6 billion and earnings to grow to $1.6 billion by 2028, with the current share price of $163 slightly below the consensus price target of $171.92, suggesting a modest potential upside.

Electronic Arts (EA), a leading developer and publisher of video games, reported its fiscal first quarter results on July 29, 2025. The company's GAAP net revenue of $1.67 billion exceeded Wall Street estimates by $0.18 billion and management's guidance midpoint by $71 million. GAAP diluted earnings per share were $0.79, surpassing the $0.75 GAAP consensus but down 24% year over year.

Key highlights from the quarter include:
- Revenue Growth: GAAP net revenue increased 7% year over year to $1.67 billion.
- Live Services: Live services and other revenue accounted for 82.7% of total GAAP net revenue, down from 85% in the prior year.
- Segment Performance: EA SPORTS F1 25 delivered strong year-over-year net bookings growth, while FC Mobile set a record quarter in net bookings.
- Operating Income: Operating income declined 25.5% year over year to $271 million, primarily due to a 6.2% increase in research and development expenses.

The company's full-year outlook projects net bookings between $7.6 billion and $8.0 billion, with GAAP net revenue guidance of $7.1 billion to $7.5 billion for FY2026. Operating cash flow is forecast at $2.2 billion to $2.4 billion for the year. Management also outlined a robust content pipeline for FY2026, including the highly anticipated releases of NHL 26 and Battlefield 6.

Despite strong Q1 results, the company faces challenges from macroeconomic pressures and increased research and development costs. The current share price of $163 is slightly below the consensus price target of $171.92, suggesting a modest potential upside.

References:
[1] https://www.nasdaq.com/articles/electronic-arts-q1-revenue-1