Electronic Arts Shares Surge 5.8% on Q1 Earnings, B of A Raises Price Target to $168

Electronic Arts (EA) stock jumped 5.8% after reporting strong Q1 financial results, surpassing expectations. The company reported net revenue of $1.671 billion and net bookings of $1.298 billion. Despite a weaker-than-expected Q2 forecast, investors focused on the current strong results. B of A Securities raised its price target on the stock to $168 from $166. EA's shares are up 8.5% YTD and trading close to its 52-week high of $167.97.

Electronic Arts (EA), the gaming giant with a market capitalization of $37.22 billion, reported its earnings for the first quarter of fiscal year 2026, surpassing analyst expectations. The company reported earnings per share (EPS) of $0.79, compared to the forecasted $0.63, and revenue of $1.3 billion, exceeding the anticipated $1.24 billion [1].

Despite the positive earnings report, EA’s stock saw a decline of 2.81% in regular trading hours, closing at $151.99, though it edged slightly higher in the aftermarket. The stock closed at $152.12, up 0.09% from the previous close. Analysts noted that the stock has shown strong momentum with a 26.55% return over the past six months, and it generally trades with low price volatility [1].

Key Takeaways:
- EPS: $0.79, surpassing forecasts by 25.4%.
- Revenue: $1.3 billion, exceeding expectations by 4.84%.
- Stock Performance: Declined by 2.81% during regular trading hours, but rose slightly in the aftermarket.

The company highlighted strong performance in full game net bookings, up 27% year-over-year (YoY). Upcoming launches include major titles such as Madden NFL 26 and Battlefield 6. EA’s stock jumped 5.8% after the report, driven by strong Q1 financial results [1].

B of A Securities raised its price target on the stock to $168 from $166, citing the company's strong performance. EA's shares are up 8.5% year-to-date (YTD) and trading close to its 52-week high of $167.97 [1].

References:
[1] https://au.investing.com/news/transcripts/earnings-call-transcript-electronic-arts-q1-2026-beats-eps-estimates-93CH-3948541