Electronic Arts Set to Reveal Earnings Decline; Analysts Adjust

Author: Evelyn Baker Updated: 10-28-2025 07:36 AM

Electronic Arts Earnings Expectations

Electronic Arts Inc. (NASDAQ: EA) is gearing up to announce its earnings for the second quarter soon. There is a significant expectation among market analysts that the company will report a substantial drop in quarterly earnings. Predictions suggest the earnings could come in at 35 cents per share, a noticeable decrease from $1.11 per share that was reported during the same period the previous year.

Revenue Forecasts and Insights

As for revenue, the consensus estimate anticipates that Electronic Arts will generate around $1.87 billion for the quarter. This figure represents a decline compared to last year's revenue of $2.08 billion. The shift in earnings and revenue forecasts illustrates the competitive market atmosphere in which Electronic Arts operates.

Recent Acquisition News

In a remarkable development, on September 29, it was publicly announced that Electronic Arts would be acquired by PIF, Silver Lake, and Affinity Partners for a staggering $55 billion. This acquisition marks a significant moment for the company as shareholders are expected to receive $210 per share in cash as part of the deal.

Market Reaction and Stock Performance

Despite the acquisition news, Electronic Arts' stock experienced a slight dip of 0.2%, closing at $200.50 recently. This fluctuation in stock price reflects investor sentiment and speculation regarding the company's upcoming earnings results and potential future performance.

Analysts' Ratings and Future Predictions

With the earnings call approaching, analysts are actively updating their ratings and predictions for Electronic Arts. Here’s a look at what some of these analysts are saying:

Morgan Stanley analyst Brian Nowak has maintained an Equal-Weight rating, lifting the price target from $148 to $210.
Roth Capital's Eric Handler recently downgraded the stock from Buy to Neutral, yet raised the price target from $185 to $210.
BMO Capital's Brian Pitz stuck with a Market Perform rating, increasing the price target from $166 to $210.
Argus Research's Joseph Bonner maintained a Buy rating with a price target increase from $180 to $210.
Wedbush analyst Alicia Reese kept a Neutral rating while nudging the price target up from $200 to $210.

Considerations for Potential Investors

For those considering investing in EA stock, it is essential to digest the insights provided by analysts and their revised predictions. Understanding these factors could help investors make more informed decisions regarding their portfolios. The anticipated earnings report will certainly play a significant role in influencing market opinions and potential stock movements.

Frequently Asked Questions

What is the expected earnings per share for Electronic Arts?

The expected earnings per share for Electronic Arts is forecasted to be 35 cents, down from $1.11 in the previous year.

What are the revenue expectations for Electronic Arts this quarter?

The anticipated revenue for Electronic Arts this quarter is $1.87 billion, which is lower than the $2.08 billion reported last year.

Who is acquiring Electronic Arts?

Electronic Arts is set to be acquired by PIF, Silver Lake, and Affinity Partners for $55 billion.

What was the stock performance of EA recently?

Recently, Electronic Arts' stock closed at $200.50, reflecting a slight decrease of 0.2%.

What do analysts think about EA's future?

Analysts have given varied ratings, with most increasing their price targets, suggesting a positive outlook despite recent challenges.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

My goal with writing is to simplify difficult financial ideas into understandable, doable guidance. My goal in writing many books and articles is to make personal finance understandable to everyone, irrespective of their experience or background. I want to give readers the information they need to take charge of their financial futures, from investing and retirement planning to budgeting and saving.

Along with my writing, I lead webinars and workshops where I provide doable advice and methods for achieving financial success. To reach a larger audience, I also frequently contribute to financial blogs and publications. My method is always to offer doable, real-world guidance that can actually improve people's lives.

Aside from my job, I like to cook, travel, and experience other cultures. I work hard to apply my belief in the value of a balanced life to my financial counsel. My goal in working is to encourage and enable people to succeed financially so they may lead the best lives possible.

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