Here are a few reasons to be optimistic about Electronic Arts (EA) as it enters FY2026

Shares of Digital Arts (NASDAQ: EA) had been down 1% on Friday. The inventory has gained 19% over the previous three months. The corporate ended fiscal yr 2025 on a powerful notice with stable fourth quarter outcomes, and it anticipates continued progress within the upcoming fiscal yr as properly. Listed below are a few causes to be optimistic about this gaming large:

Sturdy This fall efficiency

Digital Arts delivered robust outcomes for the fourth quarter of 2025 with progress in each the highest and backside line numbers. Web income elevated 7% year-over-year to $1.90 billion. Earnings per share rose 46% to $0.98. Web bookings grew 8% YoY to $1.80 billion, with a 48% improve in full recreation web bookings and a 1% rise in stay providers and different web bookings.

Sports activities video games momentum

EA is benefiting from robust momentum in its sports activities video games. In This fall, it witnessed a pickup in EA SPORTS FC after a short lived slowdown in Q3. The title benefited from a gameplay replace adopted by occasions and content material releases all through the quarter, which helped drive better-than-expected web bookings and a double-digit rise in participant engagement.

FC Cellular noticed double-digit progress in web bookings in the course of the fourth quarter. FC Cellular is a crucial contributor to world attain and engagement as the corporate expands the World Soccer franchise.

American Soccer benefited from robust late cycle engagement developments and beneficial properties from School Soccer Final Crew within the fourth quarter. As talked about on the earnings name, gamers throughout Madden NFL and School Soccer throughout console and PC grew double-digits and hours performed had been up 68%, resulting in web bookings of over $1 billion in FY2025, up over 70% YoY.

EA sees huge alternative for its World Soccer and American Soccer franchises going ahead as they proceed to rise in recognition. The corporate sees a significant acquisition alternative within the 2026 World Cup occasion together with extra milestones within the coming years. This offers it optimism on the success of its sports activities franchises in the long run.

Outlook

For the primary quarter of 2026, Digital Arts expects web bookings of approx. $1.17-1.27 billion, with low-single-digit progress in stay providers, excluding Apex Legends. Web income is predicted to be $1.55-1.65 billion whereas EPS is predicted to be $0.49-0.66.

For fiscal yr 2026, web bookings are anticipated to be $7.60-8.00 billion, with YoY progress pushed by the EA SPORTS portfolio, The Sims, and the launches of Battlefield and skate. Web income is predicted to be $7.10-7.50 billion and EPS is predicted to be $3.09-3.79.