Electronic Arts (NASDAQ:EA) Issues FY 2026 Earnings Guidance

Key Points

• Electronic Arts (NASDAQ:EA) has issued its FY 2026 earnings guidance, projecting an EPS of 7.600-8.400 and revenue of $7.6 billion-$8.0 billion, both below consensus estimates.
• In its recent quarterly report, Electronic Arts reported a loss of ($0.23) earnings per share, significantly missing the expected $0.13 by ($0.36).
• The company has declared a quarterly dividend of $0.19 per share, with a dividend yield of 0.51%, reflecting a 17.92% dividend payout ratio.

Electronic Arts (NASDAQ:EA - Get Free Report) updated its FY 2026 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 7.600-8.400 for the period, compared to the consensus estimate of 8.167. The company issued revenue guidance of $7.6 billion-$8.0 billion, compared to the consensus revenue estimate of $7.8 billion. Electronic Arts also updated its Q2 2026 guidance to 1.150-1.350 EPS.

Electronic Arts Trading Down 2.8%

Shares of EA stock traded down $4.20 during mid-day trading on Tuesday, hitting $147.79. 3,166,792 shares of the company's stock were exchanged, compared to its average volume of 3,496,086. Electronic Arts has a fifty-two week low of $115.21 and a fifty-two week high of $168.50. The stock has a 50-day simple moving average of $151.07 and a two-hundred day simple moving average of $142.94. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 0.23. The stock has a market cap of $37.14 billion, a price-to-earnings ratio of 34.86, a PEG ratio of 2.06 and a beta of 0.73.

Electronic Arts (NASDAQ:EA - Get Free Report) last issued its earnings results on Tuesday, July 29th. The game software company reported ($0.23) earnings per share for the quarter, missing the consensus estimate of $0.13 by ($0.36). Electronic Arts had a return on equity of 18.73% and a net margin of 15.02%. Equities analysts expect that Electronic Arts will post 4.71 EPS for the current fiscal year.

Electronic Arts Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 17th. Shareholders of record on Wednesday, August 27th will be given a dividend of $0.19 per share. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.51%. Electronic Arts's dividend payout ratio (DPR) is 17.92%.

Analyst Upgrades and Downgrades

Several brokerages have commented on EA. Citigroup reiterated a "neutral" rating and issued a $153.00 target price (up from $139.00) on shares of Electronic Arts in a report on Thursday, May 29th. The Goldman Sachs Group boosted their price target on Electronic Arts from $135.00 to $155.00 and gave the company a "neutral" rating in a research note on Thursday, May 8th. Roth Capital raised Electronic Arts from a "neutral" rating to a "buy" rating and lifted their target price for the company from $175.00 to $185.00 in a research note on Tuesday, June 24th. HSBC upgraded Electronic Arts from a "hold" rating to a "buy" rating and set a $190.00 price target on the stock in a research report on Wednesday, May 7th. Finally, Moffett Nathanson reaffirmed a "neutral" rating and set a $163.00 price objective on shares of Electronic Arts in a research note on Wednesday, May 7th. Fifteen research analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $162.92.

Insider Activity

In related news, EVP Jacob J. Schatz sold 1,500 shares of Electronic Arts stock in a transaction that occurred on Tuesday, July 15th. The shares were sold at an average price of $148.32, for a total transaction of $222,480.00. Following the sale, the executive vice president directly owned 28,448 shares of the company's stock, valued at approximately $4,219,407.36. The trade was a 5.01% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Vijayanthimala Singh sold 1,000 shares of Electronic Arts stock in a transaction that occurred on Tuesday, July 1st. The stock was sold at an average price of $159.53, for a total transaction of $159,530.00. Following the sale, the insider owned 37,131 shares in the company, valued at approximately $5,923,508.43. This represents a 2.62% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 31,729 shares of company stock valued at $4,822,884 over the last quarter. 0.24% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Geneos Wealth Management Inc. increased its holdings in shares of Electronic Arts by 150.8% in the first quarter. Geneos Wealth Management Inc. now owns 316 shares of the game software company's stock worth $46,000 after buying an additional 190 shares during the period. Empowered Funds LLC increased its holdings in Electronic Arts by 167.0% during the 1st quarter. Empowered Funds LLC now owns 19,306 shares of the game software company's stock valued at $2,790,000 after purchasing an additional 12,076 shares during the period. Finally, Brighton Jones LLC increased its holdings in Electronic Arts by 9.4% during the 4th quarter. Brighton Jones LLC now owns 3,420 shares of the game software company's stock valued at $500,000 after purchasing an additional 294 shares during the period. Hedge funds and other institutional investors own 90.23% of the company's stock.

About Electronic Arts

Electronic Arts Inc develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and license games from others, including FIFA, Madden NFL, UFC, and Star Wars brands.

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