Electronic Arts delivered first quarter results that exceeded Wall Street’s expectations, driven by a rebound in flagship sports franchises and a successful new game launch. Management pointed to renewed engagement in the EA SPORTS FC series following major gameplay updates, as well as strong momentum in American football titles and double-digit growth in The Sims. CEO Andrew Wilson credited the company’s rapid response to community feedback and targeted content drops for restoring player engagement, especially after a temporary slowdown in FC. The launch of new intellectual property, Split Fiction, also outperformed internal expectations, reflecting the strength of EA’s diversified portfolio.
Is now the time to buy EA? Find out in our full research report (it’s free).
Electronic Arts (EA) Q1 CY2025 Highlights:
- Revenue: $1.9 billion vs analyst estimates of $1.76 billion (6.5% year-on-year growth, 7.6% beat)
- EPS (GAAP): $0.98 vs analyst estimates of $0.91 (8.2% beat)
- Revenue Guidance for Q2 CY2025 is $1.6 billion at the midpoint, above analyst estimates of $1.45 billion
- EPS (GAAP) guidance for the upcoming financial year 2026 is $3.44 at the midpoint, missing analyst estimates by 23.4%
- Operating Margin: 20.8%, up from 13.2% in the same quarter last year
- Market Capitalization: $39.63 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Electronic Arts’s Q1 Earnings Call
- Matthew Cost (Morgan Stanley) asked about the drivers of the EA SPORTS FC rebound. CEO Andrew Wilson explained that a combination of personalized marketing and a significant gameplay update restored player engagement among key cohorts.
- Eric Sheridan (Goldman Sachs) questioned Battlefield’s development and go-to-market investments. Wilson emphasized deeper community collaboration through Battlefield Labs, while CFO Stuart Canfield clarified that increased marketing costs were the main driver of incremental expenses.
- Doug Creutz (TD Cowen) inquired about American football’s growth outlook. Wilson pointed to broader fandom for both NFL and college football, while Canfield signaled balanced guidance to account for tough year-over-year comparisons.
- Chris Schoell (UBS) asked about macroeconomic risks and pricing power. Wilson highlighted the resilience of major franchises during downturns and described pricing as focused on quality and value, with no immediate changes planned.
- Eric Handler (ROTH Capital Partners) sought insight into World Cup monetization. Wilson stated that such global events consistently drive player acquisition and engagement, especially in North America, benefiting the EA SPORTS FC franchise.
Catalysts in Upcoming Quarters
Looking forward, our analysts will be monitoring (1) the player reception and engagement levels for new releases like Battlefield and Skate, (2) ongoing progress in mobile expansion and international football market penetration, and (3) the effectiveness of live service content and real-world sports event tie-ins. The trajectory of Apex Legends and the impact of resource realignment will also be important to track.
Electronic Arts currently trades at $157.40, up from $154.55 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
The Best Stocks for High-Quality Investors
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
