EA Shares Surge Amid Positive Forecast and Gaming Market Shifts

Shares of Electronic Arts increased by more than 2% during early Wednesday trading, following an optimistic forecast that alleviated concerns about slowing market momentum and reinforced confidence in its leading sports titles.

EA's forecast highlights the gaming industry's belief in ongoing sales strength despite economic uncertainty caused by U.S. tariffs. The positive outlook comes after worries about the performance of FC 25, previously FIFA-branded, which showed signs of slowing momentum. However, a recent monetization boost in 'FC' has prompted a brighter forecast, with double-digit gains reported post-January update. The company also announced 'Battlefield's upcoming release, coinciding with Take Two Interactive's delayed launch of 'Grand Theft Auto VI' beyond fiscal 2026.

Industry analysts attribute EA's growth prospects to the resurgence of 'FC,' strong American Football sales, and the anticipated 'Battlefield' release. The delay of 'GTA VI' is seen as beneficial, easing market competition and potentially boosting sales for other publishers. EA anticipates fiscal 2026 bookings between $7.60 billion and $8 billion, surpassing market estimates. As a result, at least ten brokerages have raised their price targets, with EA's stock currently trading at 19.96 times projected earnings for the next 12 months, compared to Take Two's 31.47. Although EA's stock has risen 5.6% this year, it remains behind Take Two's 26% surge.

(With inputs from agencies.)