The chart below shows how EA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, EA sees a +1.88% change in stock price 10 days leading up to the earnings, and a +0.39% change 10 days following the report. On the earnings day itself, the stock moves by -0.09%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Franchise Net Bookings Growth: Global football franchise net bookings have grown over 70% over the last five fiscal years, indicating strong long-term growth potential.
Gameplay Update Impact: EA Sports FC saw a significant turnaround in momentum following a gameplay update, with net bookings up year-over-year during the Team of the Year event.
Sims Franchise Net Bookings Growth: The Sims franchise delivered year-over-year net bookings growth in Q3, driven by focused updates and new player experiences.
Strong Cash Generation: Operating cash flow reached $1.18 billion for the quarter, demonstrating strong cash generation capabilities.
Stock Repurchase Program Announcement: A $1 billion accelerated stock repurchase program was announced, reinforcing confidence in long-term growth and commitment to returning capital to stockholders.
Negative
Earnings Miss Report: Electronic Arts Inc. misses on earnings expectations, reporting EPS of $2.83 compared to expectations of $3.41, indicating a significant shortfall in profitability.
Net Bookings Decline: Net bookings for Q3 were $2.2 billion, down 6% year-over-year, reflecting a decline in overall sales performance.
Game Sales Decline: Full game sales were $633 million, down 3% year-over-year, highlighting a decrease in new game acquisitions and player engagement.
Net Bookings Decline: The global football franchise experienced a mid-single-digit decline in net bookings year-over-year, marking a significant downturn after two years of double-digit growth.
Cash Flow Decline: Operating cash flow decreased by 7% year-over-year to $1.18 billion, indicating a reduction in cash generation capabilities during the quarter.
Electronic Arts Inc. (NASDAQ:EA) Q3 2025 Earnings Call Transcript
EA.O
2.38%