Electronic Arts shares plunge 14% after sales miss
Electronic Arts stock falls as sales projections disappoint
Electronic Arts Inc. saw its stock plunge by more than 14% in premarket trading on Thursday after the video game maker revised its guidance for the third quarter and full year.
The company attributed the cuts to disappointing sales from key franchises, particularly the soccer game EA Sports FC and the role-playing game Dragon Age, reports Investing.com.
For the fiscal third quarter ending December 31, EA now expects to report net bookings of around $2.22 billion, significantly lower than the previously projected range of $2.4 billion to $2.55 billion. Additionally, EA expects earnings for the quarter to come in at $1.11 per diluted share on revenues of approximately $1.88 billion, which is at the lower end of its earlier forecast.
Underperformance in Key Titles
EA’s CEO, Andrew Wilson, acknowledged that while the company delivered “high-quality games and experiences,” both Dragon Age and EA Sports FC 25 did not meet the company’s net bookings expectations.
These underperforming titles are a significant factor in the company’s revised outlook, which has cast a shadow over its future projections. The weaker-than-expected third-quarter results are expected to dampen the company’s full-year performance.
EA now expects net bookings for the fiscal year to fall between $7 billion and $7.15 billion, down from its previous guidance of $7.5 billion to $7.8 billion. This downgrade has raised concerns about the company’s growth trajectory, particularly as it faces increasing competition in the gaming industry.
Analysts React with Downgrades
Following the announcement, analysts from Raymond James and BMO Capital Markets downgraded EA’s stock to “Market Perform” from “Outperform.” Raymond James analysts cited the large shortfall, which came shortly after EA’s optimistic outlook in September, raising concerns over the company’s future performance.
BMO Capital Markets also adjusted its forecasts and rating, citing softness in key franchises and an uncertain pipeline heading into a competitive environment in 2026.
With EA Sports FC 25 and Dragon Age: The Veilguard underperforming, and uncertainty regarding future releases, Electronic Arts is facing a tough road ahead. The company’s ability to recover will depend on its ability to launch new hits and regain momentum in an increasingly crowded gaming market.
Reminder, shares of Contemporary Amperex Technology Co. Ltd. (CATL) saw a 5.2% increase on Monday, rising to 264.57 yuan, following the announcement of a strategic partnership with Masdar, the United Arab Emirates’ state-owned renewable energy company.
