Electronic Arts Shares Soar 6% on Strong Earnings

Electronic Arts (EA) shares rose to their highest level since December 2024 today, with an intraday gain of 0.67%.

The strategy of buying EA shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 5-year CAGR of 6.78%. While the strategy captured some gains, particularly in the immediate aftermath of the high point, the returns were generally modest and inconsistent, highlighting the challenges of timing the market. Investors should consider these results alongside other factors, such as market conditions and their own risk tolerance, when making investment decisions.

Electronic Arts reported robust financial results for its fiscal fourth quarter and fiscal year 2025, driven by the success of EA SPORTS FC, Split Fiction, and The Sims. This performance led to a record year for EA SPORTS, with net bookings for FY25 totaling $7.355 billion. The American Football franchise and The Sims, which continues to show double-digit growth, made significant contributions to this achievement.

Looking ahead, EA has forecasted fiscal year 2026 net bookings to be between $7.600 billion and $8.000 billion, exceeding Wall Street expectations. This optimistic outlook is driven by the EA SPORTS portfolio, The Sims, and upcoming launches like Battlefield. The company announced a new Battlefield game launch by March 2026, which is anticipated to contribute positively to its financial performance.

EA's shares rose more than 6% in post-market trading following the announcement of its latest earnings, which surpassed analyst expectations. This further boosted investor confidence in the company's strategic game releases and positive market reception. The company maintains a positive business outlook with expected growth in live services and new non-annual titles planned for FY27.