Electronic Arts (EA) Stock Forecast & Price Target

Electronic Arts is poised for significant growth, driven by a robust pipeline of upcoming major game releases and ongoing strength in its digital sales, which constitute about 75% of revenue. The recent acquisition of Codemasters is expected to enhance EA's total net bookings and profitability immediately, reinforcing the company’s financial foundation with a solid balance sheet that includes $3.2 billion in cash and manageable debt levels. Furthermore, the successful launches of key franchises, particularly the rebranded EA FC, indicate a strong market position and consumer engagement, setting the stage for a potential rebound in share price performance.

Electronic Arts has revised its fiscal year 2025 guidance downward, projecting revenue between $7.00 billion and $7.15 billion, a decrease from a prior estimate of $7.50 billion to $7.80 billion, along with a significant cut in earnings per share estimates from $7.35–$7.95 to $6.25–$6.65. The firm is experiencing notable underperformance in its Live Services segment, with bookings now expected to decline 4%-6%, in stark contrast to earlier projections of growth of 1%-5%, primarily due to disappointing sales of titles such as EA Sports FC 25 and Dragon Age: The Veilguard. This underperformance, combined with increased competition leading to a steeper decline in engagement for titles like Apex Legends, suggests a troubling trend that raises concerns about the company’s ability to maintain profitability in its key revenue-generating segments.