Electronic Arts Stock Gets Lift From Sports Offerings, New 'Battlefield' Game
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Key Takeaways
Electronic Arts beat fiscal fourth-quarter profit and sales estimates on high demand for its sports offerings.
The video game maker also looked to benefit from a summer release of a new "Battlefield" game.
JPMorgan and Oppenheimer raised their price targets on the stock following the report.
Electronic Arts (EA) shares gained Wednesday, a day after the video game maker posted better-than-expected results as it got a boost from demand for its sports portfolio. It also said it anticipates future gains from a new "Battlefield" game.
The company reported fiscal fourth-quarter earnings per share of $0.98, revenue that rose nearly 7% year-over-year to $1.90 billion, and net booking that increased 8% to $1.80 billion. All surpassed the average estimate of analysts surveyed by Visible Alpha.
CEO Andrew Wilson noted that the number of players on its American Football franchises Madden NFL and College Football increased by a double-digit percentage, hours played jumped 68%, and net bookings soared more than 70% to more than $1 billion. Its soccer franchise FC Mobile saw new player acquisition and Daily Active Users (DAU) more than 20% higher.
Wilson explained that EA remains "firmly on track for a FY26 release" of the next "Battlefield," adding that the company plans "a major global reveal later this summer."
EA sees fiscal 2026 net bookings between $7.60 billion and $8.00 billion, while the Visible Alpha outlook was for $7.83 billion.
Following the release, analysts at both JPMorgan and Oppenheimer raised their price targets on the stock.
Shares of Electronic Arts rose less than 2% to trade at their highest level in about five months.
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