Electronic Arts (NASDAQ:EA) Releases Q2 2026 Earnings Guidance

Key Points

• Electronic Arts has revised its Q2 2026 earnings guidance, forecasting earnings per share between 1.150-1.350, significantly lower than the consensus estimate of 2.181, alongside revenue expectations of $1.8 billion-$1.9 billion compared to $2.0 billion.
• The company recently declared a quarterly dividend of $0.19 to be paid on September 17th, marking a 0.51% yield with a payout ratio of 17.92%.
• Shares of Electronic Arts fell 2.8% to $147.79 amid trading on Tuesday, reflecting a trading volume of 3,166,792, compared to an average volume of 3,496,086.

Electronic Arts (NASDAQ:EA - Get Free Report) issued an update on its second quarter 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 1.150-1.350 for the period, compared to the consensus earnings per share estimate of 2.181. The company issued revenue guidance of $1.8 billion-$1.9 billion, compared to the consensus revenue estimate of $2.0 billion. Electronic Arts also updated its FY 2026 guidance to 7.600-8.400 EPS.

Electronic Arts Trading Down 2.8%

Shares of Electronic Arts stock traded down $4.20 during trading hours on Tuesday, hitting $147.79. The company's stock had a trading volume of 3,166,792 shares, compared to its average volume of 3,496,086. The company has a market capitalization of $37.14 billion, a PE ratio of 34.86, a P/E/G ratio of 2.06 and a beta of 0.73. The business has a fifty day moving average of $151.07 and a 200 day 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. Electronic Arts has a 1-year low of $115.21 and a 1-year high of $168.50.

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

Electronic Arts Dividend Announcement

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

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the stock. Roth Capital upgraded shares of 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. Oppenheimer upped their price target on shares of Electronic Arts from $170.00 to $185.00 and gave the stock an "outperform" rating in a research report on Wednesday, May 7th. UBS Group boosted their price target on Electronic Arts from $152.00 to $167.00 and gave the company a "neutral" rating in a research note on Wednesday, May 7th. HSBC upgraded Electronic Arts from a "hold" rating to a "buy" rating and set a $190.00 price objective for the company in a research report on Wednesday, May 7th. Finally, JPMorgan Chase & Co. raised their price objective on Electronic Arts from $135.00 to $160.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 7th. Fifteen research analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $162.92.

Insider Transactions at Electronic Arts

In other news, CEO Andrew Wilson sold 5,000 shares of the company's stock in a transaction that occurred on Monday, July 21st. The stock was sold at an average price of $152.21, for a total value of $761,050.00. Following the completion of the transaction, the chief executive officer directly owned 57,393 shares of the company's stock, valued at $8,735,788.53. This represents a 8.01% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Vijayanthimala Singh sold 1,000 shares of the company's stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $159.53, for a total value of $159,530.00. Following the completion of the transaction, the insider directly owned 37,131 shares of the company's stock, 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. Over the last quarter, insiders sold 31,729 shares of company stock valued at $4,822,884. Corporate insiders own 0.24% of the company's stock.

Hedge Funds Weigh In On Electronic Arts

Several institutional investors have recently modified their holdings of the business. Geneos Wealth Management Inc. lifted its stake in Electronic Arts by 150.8% in the first quarter. Geneos Wealth Management Inc. now owns 316 shares of the game software company's stock valued at $46,000 after purchasing an additional 190 shares during the last quarter. Empowered Funds LLC lifted its stake in Electronic Arts by 167.0% in the first 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 last quarter. Finally, Brighton Jones LLC lifted 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 valued at $500,000 after purchasing an additional 294 shares during the last quarter. 90.23% of the stock is owned by institutional investors.

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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