5 Revealing Analyst Questions From Electronic Arts's Q1 Earnings Call
Electronic Arts delivered first quarter results that exceeded Wall Street's expectations, driven by a rebound in flagship sports franchises and a successful new game launch. Management pointed to renewed engagement in the EA SPORTS FC series following major gameplay updates, as well as strong momentum in American football titles and double-digit growth in The Sims. CEO Andrew Wilson credited the company's rapid response to community feedback and targeted content drops for restoring player engagement, especially after a temporary slowdown in FC. The launch of new intellectual property, Split Fiction, also outperformed internal expectations, reflecting the strength of EA's diversified portfolio.
Is now the time to buy EA? Find out in our full research report (it's free).
Revenue: $1.9 billion vs analyst estimates of $1.76 billion (6.5% year-on-year growth, 7.6% beat)
EPS (GAAP): $0.98 vs analyst estimates of $0.91 (8.2% beat)
Revenue Guidance for Q2 CY2025 is $1.6 billion at the midpoint, above analyst estimates of $1.45 billion
EPS (GAAP) guidance for the upcoming financial year 2026 is $3.44 at the midpoint, missing analyst estimates by 23.4%
Operating Margin: 20.8%, up from 13.2% in the same quarter last year
Market Capitalization: $39.63 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Matthew Cost (Morgan Stanley) asked about the drivers of the EA SPORTS FC rebound. CEO Andrew Wilson explained that a combination of personalized marketing and a significant gameplay update restored player engagement among key cohorts.
Eric Sheridan (Goldman Sachs) questioned Battlefield's development and go-to-market investments. Wilson emphasized deeper community collaboration through Battlefield Labs, while CFO Stuart Canfield clarified that increased marketing costs were the main driver of incremental expenses.
Doug Creutz (TD Cowen) inquired about American football's growth outlook. Wilson pointed to broader fandom for both NFL and college football, while Canfield signaled balanced guidance to account for tough year-over-year comparisons.
Chris Schoell (UBS) asked about macroeconomic risks and pricing power. Wilson highlighted the resilience of major franchises during downturns and described pricing as focused on quality and value, with no immediate changes planned.
Eric Handler (ROTH Capital Partners) sought insight into World Cup monetization. Wilson stated that such global events consistently drive player acquisition and engagement, especially in North America, benefiting the EA SPORTS FC franchise.
Looking forward, our analysts will be monitoring (1) the player reception and engagement levels for new releases like Battlefield and Skate, (2) ongoing progress in mobile expansion and international football market penetration, and (3) the effectiveness of live service content and real-world sports event tie-ins. The trajectory of Apex Legends and the impact of resource realignment will also be important to track.
Electronic Arts currently trades at $157.40, up from $154.55 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free).
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