Early trading on Wednesday saw a more than 2% increase in shares of Electronic Arts (EA.O), as the gaming behemoth’s optimistic outlook allayed worries about waning momentum and rekindled faith in its popular sports games.
Despite the economic uncertainties and financial strain caused by U.S. tariffs, EA’s projection highlights the gaming industry’s confidence in ongoing sales strength.
The optimistic prediction comes after worries over FC 25’s performance, as the once-FIFA-branded soccer team displayed indications of player tiredness and a slowing pace in a very competitive market.
Following a January update, the business reported on Tuesday that “FC” monetization was growing double digits.
The long-awaited “Grand Theft Auto VI” will not be released until beyond fiscal 2026, according to EA, which also announced the release of “Battlefield” to replace Take Two Interactive (TTWO.O).
“The rebound in FC, continued success of American Football and upcoming Battlefield launch all give us confidence in a more sustainable top and bottom line story,” the analysts at Jefferies stated in a note.
According to analysts, delaying the release of “GTA VI” can reduce competition in the videogame industry and increase sales for other publishers as players look for other well-known games.
“FC proved to be a temporary ‘ebb’ and the delay of GTA VI opened a window for Battlefield to launch in FY26,” analysts at J.P. Morgan observed.
According to data gathered by LSEG, EA anticipates fiscal 2026 bookings to be between $7.60 billion and $8 billion, above market projections of $7.62 billion.
Data gathered by LSEG shows that at least 10 brokerages increased their price targets on the stock after the findings, raising the median to $158.
As of right now, EA is trading at 19.96 times its projected earnings for the upcoming year, while Take Two is trading at 31.47 times. EA’s stock has increased 5.6% so far this year, less than Take Two’s roughly 26% gain.
