EA shares surge on strong earnings forecast, Battlefield launch
Reuters – Electronic Arts (NASDAQ: EA) shares jumped more than 2% in morning trading on Wednesday after the company provided a strong financial outlook for fiscal 2026 and announced a new “Battlefield” game, helping to restore investor confidence amid a challenging gaming industry.
EA’s new forecast eased concerns about a potential decline in its “FC” soccer franchise, formerly known as FIFA. The company said that the “FC” series’ monetization rate increased by double digits following a January update, underscoring the brand’s resilience despite an increasingly competitive market.
Other growth drivers come from the American Football franchise and the announcement of a new "Battlefield" title – just as rival Take-Two Interactive pushed back the release of its blockbuster "Grand Theft Auto VI" to after fiscal 2026.
"FC's recovery, the solid performance of the football franchise and the return of Battlefield reinforce the story of sustainable growth in both revenue and profit," analysts at Jefferies said.
Analysts also said that the delay of GTA VI opens up opportunities for other titles to dominate the market. While players are still waiting for Rockstar's blockbuster, Battlefield can take advantage of this "gap" to attract a large number of gamers who are "thirsty" for new experiences.
Bookings beat expectations, investor sentiment soars
EA now forecasts bookings for fiscal 2026 of $7.60 billion to $8 billion – above the market average of $7.62 billion (LSEG data). The news prompted several brokerages to raise their price targets on EA shares, bringing the new average to $158 per share.
As of 2025, EA shares have gained 5.6%, lagging Take-Two’s impressive gain of nearly 26%, but EA’s valuation is more attractive: 19.96 times projected earnings over the next 12 months, compared with 31.47 times its rival’s.
Should you invest in EA now?
Analysts believe that the combination of improving revenue, quality upcoming products, and a stable competitive position makes EA a worthy choice for long-term investors. In a volatile market, stocks like EA – with reasonable valuations and a clear growth strategy – could be a “quiet winner” in the gaming industry.