EA's Fiscal Year 2025 Earnings Signal a Pivot Toward Stability

The financial results of Electronic Arts (EA) for fiscal year 2025, released on May 6, 2025, mark a pivotal moment for the gaming giant. After a year of turbulence caused by underperforming titles and shifting consumer preferences, the company’s earnings report and executive commentary signal a strategic recalibration—one that could redefine its path to profitability.

The Earnings Snapshot: Growth Amid Challenges

EA’s Q4 FY25 net bookings totaled $1.24 billion, slightly below Wall Street’s $1.26 billion estimate, but the full-year net bookings of $6.4 billion represented a 3% year-over-year decline. CEO Andrew Wilson framed the results as a “transition year” in the conference call, citing delays in key projects and the discontinuation of Dragon Age and EA SPORTS FC 25 as setbacks.

The company’s shift toward “strategic selectivity” became evident: EA announced plans to reduce its game portfolio by 25%, focusing on high-margin franchises like FIFA, Star Wars, and Apex Legends. CFO Stuart Canfield emphasized that cost-cutting measures, including a 10% workforce reduction earlier in 2025, had trimmed operating expenses by 8% year-over-year.

Key Takeaways from the Earnings Call

1. Portfolio Restructuring Pays Off:
2. EA’s focus on fewer, higher-quality titles is starting to yield results. Star Wars Jedi: Survivor sold 3.5 million units in its first week, outperforming its predecessor, while Apex Legends Mobile added 100 million players in 2025.

3. Wilson stated, “We’re prioritizing games that can sustain long-term engagement and monetization,” signaling a pivot away from one-off hits to enduring franchises.

4. Cloud and Mobile Gaming as Growth Drivers:

5. Mobile revenue now accounts for 28% of EA’s total, up from 22% in 2024. The FIFA Mobile update, featuring cross-platform play, drove a 15% increase in active users in Q4.
6. EA’s partnership with Google Cloud to build a unified player data platform aims to enhance retention—a critical metric as competition in free-to-play markets intensifies.

The Road Ahead: Risks and Opportunities

Despite the strategic adjustments, EA faces hurdles. The discontinuation of Dragon Age and EA SPORTS FC 25 underscores the risks of over-reliance on licensed IP. Meanwhile, Activision Blizzard’s Call of Duty Mobile and Take-Two’s Grand Theft Auto: Chinatown Wars continue to dominate mobile markets, squeezing EA’s margins.

However, the company’s emphasis on live-service games—where players spend months or years engaged with a single title—could offset these challenges. Apex Legends’ revenue grew 40% in 2025, demonstrating the profitability of this model.

Investor Takeaway: Patience for the Turnaround

EA’s stock closed at $118.45 on May 6, a 3% dip from the prior day’s price but up 18% year-to-date. While the earnings report lacked fireworks, the clarity of EA’s strategy—streamlining its portfolio, doubling down on mobile/cloud, and cutting costs—offers a path to stabilization.

The company’s 2026 fiscal outlook, which includes a 5% net bookings growth target, hinges on the success of FIFA 26, Star Wars’ next installment, and the planned Mass Effect reboot. Investors should monitor player retention metrics and mobile revenue trends to gauge progress.

Conclusion: EA’s Pivot Is a Necessity, Not a Gamble

The May 6 earnings underscore that EA is no longer chasing every trending genre but instead refining its core strengths. With a trimmed portfolio, cost discipline, and a mobile-first mindset, the company appears positioned to weather the industry’s growing pains.

The key question for investors: Can EA’s focus on live-service games and mobile dominance translate into sustained growth? Early signs suggest yes—but the real test comes in 2026, when the fruits of this restructuring will either bloom or wilt. For now, the strategy is clear—and the stakes, as always in gaming, are high.

Gary Alexander’s columns blend deep industry analysis with actionable insights, appearing weekly in major financial publications.