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EA shares jump as it scores big with upbeat forecast, 'Battlefield' release
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EA shares jump as it scores big with upbeat forecast, 'Battlefield' release
May 26, 2025 2:45 AM

(Reuters) - Shares of Electronic Arts ( EA ) rose nearly 5% in premarket trading, after the gaming giant's upbeat forecast eased concerns about slowing momentum and revived confidence in its blockbuster sports titles.

EA's forecast underscores the gaming industry's confidence in sustained sales strength, even as U.S. tariffs stir up economic uncertainty and put consumer wallets to the test.

The upbeat forecast follows concerns about FC 25's performance, as the formerly FIFA-branded soccer franchise showed signs of slowing momentum and hints of player fatigue in a highly competitive market.

The company on Tuesday said monetization for "FC" was up double digits after a January update.

EA also announced the launch of "Battlefield", stepping in just as Take Two Interactive pushes the release of the long-awaited "Grand Theft Auto VI" beyond fiscal 2026.

"The rebound in FC, continued success of American Football and upcoming Battlefield launch all give us confidence in a more sustainable top and bottom line story," analysts at Jefferies wrote in a note.

Analysts have said pushing back the release of "GTA VI" could ease competition in the gaming market, potentially boosting sales for other videogame publishers as players seek alternative big-name titles.

"FC proved to be a temporary "ebb" and the delay of GTA VI opened a window for Battlefield to launch in FY26," J.P.Morgan analysts noted.

Shares of Take Two Interactive were up 1.15% at $234.5 in premarket trade.

EA sees fiscal 2026 bookings ranging from $7.60 billion to $8 billion, outpacing market estimates of $7.62 billion according to data compiled by LSEG.

At least 10 brokerages raised their price targets on the stock following the results, bringing the median to $166, according to data compiled by LSEG.

EA currently trades at 19.96 times the estimates of its earnings for the next 12 months, compared with Take Two's 31.47. So far this year, EA's stock has gained 5.6%, trailing Take Two's jump of ~26%.

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