FMP
Oct 27, 2025
Electronic Arts Inc., a leading player in the video game industry, is known for popular franchises like FIFA, Madden NFL, and The Sims. As a major competitor to companies like Activision Blizzard and Take-Two Interactive, EA is set to release its quarterly earnings on Tuesday, October 28, 2025. Wall Street estimates earnings per share (EPS) of $1.27 and revenue of approximately $1.87 billion.
Analysts expect EA to report earnings of $1.29 per share and revenue of $1.88 billion for Q2 2026, as highlighted by the recent data. This slight increase in projections compared to the previous quarter's estimates reflects a cautious optimism among analysts. The stock opened at $200.84, showing a modest 0.1% increase, with a 50-day moving average of $183.25 and a 200-day moving average of $162.78.
EA's market capitalization stands at $50.25 billion, with a price-to-earnings (P/E) ratio of 50.34 and a PEG ratio of 3.05. These figures suggest that investors have high expectations for EA's future earnings growth. The stock has experienced a 52-week low of $115.21 and a high of $203.75, indicating significant volatility over the past year.
The anticipated decline in earnings for the quarter ending September 2025 is attributed to lower revenues, with analysts predicting a 40.9% decrease in EPS compared to the same period last year. Revenues are forecasted to decline by 10.4% year-over-year, as highlighted by the Zacks Consensus Estimate. This trend in earnings estimate revisions can significantly influence the stock's short-term price performance.
EA's financial metrics, such as a price-to-sales ratio of 6.72 and an enterprise value to sales ratio of 6.78, reflect the company's valuation in relation to its revenue. The enterprise value to operating cash flow ratio of 25.65 highlights EA's cash flow generation relative to its valuation. With a debt-to-equity ratio of 0.32, EA maintains a relatively low level of debt compared to its equity, although a current ratio of 0.84 suggests potential challenges in covering short-term liabilities.
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