Electronic Arts (NASDAQ:EA) Issues Earnings Results, Misses Estimates By $4.53 EPS

Electronic Arts (NASDAQ:EA) posted its earnings results on Tuesday. The game software company reported $0.35 EPS for the quarter, missing the consensus estimate of $4.88 by ($4.53), FiscalAI reports. Electronic Arts had a net margin of 12.14% and a return on equity of 15.30%. The business had revenue of $1.90 billion during the quarter, compared to analyst estimates of $2.92 billion.

Electronic Arts Trading Down 1.1%

Shares of EA stock traded down $2.21 on Tuesday, reaching $201.39. The company had a trading volume of 6,705,301 shares, compared to its average volume of 2,179,705. The stock has a market cap of $50.37 billion, a PE ratio of 58.89, a PEG ratio of 2.46 and a beta of 0.74. The company has a 50-day moving average of $203.88 and a 200-day moving average of $189.85. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.25. Electronic Arts has a 12 month low of $120.22 and a 12 month high of $204.88.

Insider Activity

In related news, CEO Andrew Wilson sold 5,000 shares of the business’s stock in a transaction that occurred on Monday, December 15th. The stock was sold at an average price of $204.11, for a total value of $1,020,550.00. Following the completion of the transaction, the chief executive officer directly owned 43,858 shares in the company, valued at approximately $8,951,856.38. The trade was a 10.23% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Laura Miele sold 2,500 shares of the stock in a transaction that occurred on Monday, December 15th. The stock was sold at an average price of $204.11, for a total value of $510,275.00. Following the sale, the insider directly owned 53,148 shares of the company’s stock, valued at approximately $10,848,038.28. The trade was a 4.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 123,769 shares of company stock valued at $24,943,734. 0.24% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Electronic Arts

Hedge funds and other institutional investors have recently made changes to their positions in the company. Geneos Wealth Management Inc. boosted its stake in shares of Electronic Arts by 150.8% during the 1st quarter. Geneos Wealth Management Inc. now owns 316 shares of the game software company’s stock worth $46,000 after acquiring an additional 190 shares during the period. MUFG Securities EMEA plc acquired a new position in Electronic Arts in the 2nd quarter valued at about $108,000. Modern Wealth Management LLC bought a new position in Electronic Arts in the 2nd quarter valued at about $211,000. Chesapeake Capital Corp IL bought a new position in shares of Electronic Arts during the third quarter worth approximately $218,000. Finally, Lighthouse Investment Partners LLC acquired a new stake in Electronic Arts during the 2nd quarter worth approximately $226,000. 90.23% of the stock is owned by institutional investors.

Key Headlines Impacting Electronic Arts

Here are the key news stories impacting Electronic Arts this week:

• Positive Sentiment: Net bookings jumped 38% year-over-year to $3.046 billion for the quarter — a strong underlying demand signal that partly offsets the GAAP revenue miss. Electronic Arts Reports Q3 FY26 Results
• Positive Sentiment: Battlefield™ 6 was the best-selling shooter of 2025 and set franchise engagement records — a commercial win that supports longer-term franchise monetization. Electronic Arts Reports Q3 FY26 Results
• Positive Sentiment: EA says EA SPORTS FC net bookings increased high single digits (ex-delivery benefit), and the company is expanding EA Sports hiring — signals of investment in growth areas. Electronic Arts Reports Q3 FY26 Results Electronic Arts Expands EA Sports Hiring As Valuation Premium Draws Attention
• Neutral Sentiment: Ongoing takeover/strategic discussions are being revisited by analysts and press; M&A talk can lift sentiment but is uncertain and timing is unclear. Electronic Arts earnings on deck as takeover reshapes outlook
• Neutral Sentiment: Retail-focused pieces (dividend/option income ideas) are circulating but EA’s dividend yield is small and unlikely to be a near-term catalyst. How To Earn $500 A Month From Electronic Arts Stock Ahead Of Q3 Earnings
• Neutral Sentiment: Reported short-interest data in the feed is inconsistent/zeroed out and provides no clear signal to traders right now.
• Negative Sentiment: GAAP results missed expectations badly — EPS of $0.35 vs. consensus $4.88 and revenue $1.90B vs. est. $2.92B. The large EPS/revenue miss is the primary driver of the stock’s downward move as it conflicts with the stronger net-bookings headline. View Press Release
• Negative Sentiment: Reports that several older EA titles on PS4/PS5 will shut down in 2026 could create negative sentiment among parts of the community and modestly affect live-service revenues for those titles. Fan-favorite PS5, PS4 EA games shutting down in 2026

Analyst Upgrades and Downgrades

EA has been the subject of a number of research analyst reports. Morgan Stanley increased their target price on Electronic Arts from $148.00 to $210.00 and gave the company an “equal weight” rating in a report on Monday, October 20th. Citigroup boosted their target price on Electronic Arts from $206.00 to $207.00 and gave the stock a “neutral” rating in a report on Thursday, October 30th. Weiss Ratings reiterated a “hold (c)” rating on shares of Electronic Arts in a research note on Wednesday, October 8th. Benchmark reaffirmed a “buy” rating on shares of Electronic Arts in a research report on Wednesday, October 29th. Finally, Zacks Research cut shares of Electronic Arts from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, November 19th. Four research analysts have rated the stock with a Buy rating, twenty have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $187.19.

About Electronic Arts

Electronic Arts Inc (NASDAQ: EA) is a global interactive entertainment company headquartered in Redwood City, California. Founded in 1982 by Trip Hawkins, EA develops, publishes and distributes video games and related content for a variety of platforms, including consoles, personal computers and mobile devices. The company combines in-house development, partnerships and studio acquisitions to create and maintain a portfolio of entertainment properties and live-service experiences for players worldwide.

EA’s product lineup spans several well-known franchises and genres.