- Electronic Arts (EA) forecasts net bookings between $7.6 billion and $8 billion for 2026, with an estimate at $7.56 billion.
- Earnings per share (EPS) for 2026 are projected to be between $3.09 and $3.79.
- EA expects operating cash flow to be about $2.2 billion to $2.4 billion, with an estimate of $2.22 billion.
- For the first quarter, EA projects net bookings between $1.18 billion and $1.28 billion, slightly below the estimate of $1.3 billion.
- The expected EPS for the first quarter is between 49 cents and 66 cents.
- In the fourth quarter, EA reported net bookings of $1.80 billion, an 8% increase year-on-year, which exceeded the estimate of $1.56 billion.
- Total net revenue grew by 6.5% year-on-year to reach $1.90 billion, surpassing the estimate of $1.75 billion.
- Live Services and Other revenue saw a modest increase of 0.8% year-on-year to achieve $1.46 billion, above the estimate of $1.1 billion.
- Full game revenue increased significantly by 31% year-on-year to $437 million, exceeding the estimate of $315.1 million.
- Operating cash flow for the fourth quarter was $549 million, a 5.3% decrease year-on-year, yet above the estimate of $483.2 million.
- Fourth quarter EPS was 98 cents compared to 67 cents the previous year.
- CEO Andrew Wilson expressed confidence in executing a deep pipeline, with notable anticipation around the forthcoming reveal of Battlefield.
- Fiscal Year 2026 net bookings growth is expected to be driven by EA SPORTS, The Sims, Battlefield, and skate., although offset by 5 points of weakness in catalog and Apex Legends.
- EA forecasts GAAP operating expenses for FY2026 between $4.47 billion and $4.57 billion, mainly due to Battlefield marketing costs.
- The company anticipates continued growth in live services, alongside the launch of new non-annual titles in fiscal year 2027.
- For the first quarter, live services growth, excluding Apex Legends, is predicted to increase slightly, led by EA SPORTS, but offset by headwinds from Apex Legends and catalog.
“`
Electronic Arts on Smartkarma
Analysts on Smartkarma, like Baptista Research, are closely following Electronic Arts (EA) to provide valuable insights for investors. Baptista Research recently covered EA’s plans to leverage the live-service shift in gaming, highlighting potential industry-changing impacts. In their report, Baptista Research discussed EA’s mixed third-quarter fiscal 2025 performance, pointing out challenges like financial results below expectations, especially with key franchises. Despite critical acclaim, the newly launched “Dragon Age: The Veilguard” faced tough competition in the single-player RPG market, impacting its performance.
A look at Electronic Arts Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Electronic Arts shows a promising long-term outlook. With strong scores in Growth, Resilience, and Momentum, the company appears to be well-positioned for future success. Its focus on expanding and adapting to market trends indicates potential for continued growth and innovation in the interactive entertainment sector.
While the Value and Dividend scores are not as high as the other factors, Electronic Arts‘ overall positive performance in Growth, Resilience, and Momentum suggests a bright future for the company. As Electronic Arts Inc. continues to develop and distribute interactive entertainment software globally, investors may find the company’s growth prospects appealing for long-term investment.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
