Electronic Arts (NASDAQ:EA) Posts Quarterly Earnings Results, Misses Estimates By $0.36 EPS

Key Points

• Electronic Arts reported a loss of ($0.23) EPS for the quarter, which missed analysts' consensus estimates by ($0.36).
• The company updated its FY 2026 guidance to an EPS range of 7.600-8.400 and Q2 2026 guidance to 1.150-1.350 EPS.
• Electronic Arts announced a quarterly dividend of $0.19 per share, yielding 0.51%, with a payout ratio of 17.92%.

Electronic Arts (NASDAQ:EA - Get Free Report) released its quarterly earnings results on Tuesday. The game software company reported ($0.23) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.13 by ($0.36), Zacks reports. Electronic Arts had a net margin of 15.02% and a return on equity of 18.73%. Electronic Arts updated its FY 2026 guidance to 7.600-8.400 EPS and its Q2 2026 guidance to 1.150-1.350 EPS.

Electronic Arts Trading Down 2.8%

EA traded down $4.20 during midday trading on Tuesday, hitting $147.79. 3,166,792 shares of the company were exchanged, compared to its average volume of 3,496,086. The firm's 50 day moving average price is $151.07 and its 200-day moving average price is $142.94. Electronic Arts has a 1-year low of $115.21 and a 1-year high of $168.50. The firm has a market capitalization of $37.14 billion, a P/E ratio of 34.86, a P/E/G ratio of 2.06 and a beta of 0.73. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 0.23.

Electronic Arts Dividend Announcement

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

Insiders Place Their Bets

In other news, CFO Stuart Canfield sold 1,000 shares of the company's stock in a transaction that occurred on Tuesday, May 20th. The stock was sold at an average price of $151.32, for a total transaction of $151,320.00. Following the transaction, the chief financial officer directly owned 14,533 shares of the company's stock, valued at $2,199,133.56. This represents a 6.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Laura Miele sold 2,500 shares of the stock in a transaction on Tuesday, July 1st. The shares were sold at an average price of $159.50, for a total value of $398,750.00. Following the completion of the sale, the insider directly owned 60,592 shares of the company's stock, valued at $9,664,424. The trade was a 3.96% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 31,729 shares of company stock valued at $4,822,884 over the last three months. Insiders own 0.24% of the company's stock.

Hedge Funds Weigh In On Electronic Arts

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Brighton Jones LLC grew its stake in Electronic Arts by 9.4% in the fourth quarter. Brighton Jones LLC now owns 3,420 shares of the game software company's stock worth $500,000 after purchasing an additional 294 shares during the period. Empowered Funds LLC grew its stake in shares of 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, 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 last quarter. 90.23% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

EA has been the topic of several research analyst reports. Robert W. Baird set a $168.00 target price on Electronic Arts in a research report on Wednesday, May 7th. Citigroup reissued a "neutral" rating and issued a $153.00 price objective (up from $139.00) on shares of Electronic Arts in a research note on Thursday, May 29th. UBS Group increased their price target on Electronic Arts from $152.00 to $167.00 and gave the company a "neutral" rating in a research report on Wednesday, May 7th. TD Cowen boosted their target price on Electronic Arts from $160.00 to $172.00 and gave the company a "buy" rating in a research note on Wednesday, May 7th. Finally, Argus set a $170.00 price target on Electronic Arts in a report on Friday, May 16th. Fifteen equities research analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat.com, Electronic Arts has a consensus rating of "Hold" and a consensus price target of $162.92.

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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