Electronic Arts Rallies 5% On Earnings Beat

Electronic Arts (NASDAQ:EA) delivered better-than-expected fiscal first-quarter results, driven by strong performance in its gaming franchises. As a result, the company's shares rose more than 5% on Wednesday.

The company posted adjusted earnings per share of $0.79, beating analyst expectations of $0.63. Net bookings reached $1.3 billion, exceeding internal guidance.

Revenue totaled $1.67 billion, up slightly from $1.66 billion a year ago, supported by higher engagement in titles like EA SPORTS FC, Apex Legends, and The Sims.

Despite the strong start, EA guided for second-quarter EPS between $0.29 and $0.46, well below the $0.79 consensus. It also forecast net bookings between $1.8 billion and $1.9 billion, falling short of the $2 billion expected.

The weaker outlook reflects a shift in revenue recognition for EA SPORTS FC 26 Ultimate Edition into Q3 and increased marketing expenses ahead of key launches, including Battlefield 6.

The company reaffirmed its full-year outlook, guiding for net bookings of $7.6 billion to $8 billion and revenue between $7.1 billion and $7.5 billion. Operating cash flow over the past year totaled $1.98 billion. Full-year EPS is expected in the range of $3.09 to $3.79.