Electronic Arts Reports Strong Q2 Results

REDWOOD CITY, Calif. – Electronic Arts (NASDAQ:EA) reported better-than-expected second-quarter revenue, raising its full-year outlook, which led to a 1.2% increase in shares during after-hours trading.

The video game publisher posted Q2 revenue of $2.08 billion, exceeding analyst estimates of $2.04 billion, marking a 6% increase year-over-year. However, the adjusted earnings per share were reported at $1.11, significantly lower than the consensus estimate of $2.02.

EA's net bookings reached a record $2.079 billion, surpassing the company's guidance of $2.050 billion. This performance was driven by the EA SPORTS portfolio, particularly with American Football projected to exceed $1 billion in net bookings for fiscal 2025.

Andrew Wilson, CEO of EA, remarked, "EA delivered another strong quarter with record Q2 net bookings, driven by our incredible teams, broad portfolio, and technology leadership. The momentum in our business reinforces our strategic vision to deliver innovative experiences and interactive entertainment that deepens and expands engagement across our global communities."

For the third quarter, EA forecasts revenue between $2.4 billion and $2.55 billion, while analysts expect $2.535 billion. The company has raised its full-year revenue outlook to between $7.5 billion and $7.8 billion, up from the previous forecast of $7.3 billion to $7.7 billion.

CFO Stuart Canfield expressed confidence in the company’s ability to drive long-term value through increased scale, top-line growth, improved margins, and enhanced cash flow.

EA's live service offerings performed well, with Global Football witnessing growth across all platforms in Q2. The Sims 4 expanded its player base, welcoming over 15 million new players in the past year.

Additionally, EA repurchased 2.6 million shares for $375 million during the quarter and declared a quarterly cash dividend of $0.19 per share.

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