EA Stock Crashes on Earnings Warning. Should Investors Be Worried?
EA stock is spiraling Thursday after video game maker Electronic Arts released preliminary quarterly numbers and lowered its full-year bookings guidance.
Electronic Arts (EA) is the worst S&P 500 stock Thursday after the video game maker released preliminary results for its fiscal 2025 third quarter and downwardly revised its full-year bookings forecast. At last check, EA stock was down more than 18%.
For its fiscal third quarter, EA said it now expects revenue of approximately $1.883 billion and earnings of roughly $1.11 per share. It had previously guided for revenue in the range of $1.875 billion to $2.025 billion and earnings between 85 cents and $1.02 per share.
"During Q3, we continued to deliver high-quality games and experiences across our portfolio; however, Dragon Age and EA SPORTS FC 25 underperformed our net bookings expectations," said Electronic Arts CEO Andrew Wilson in a statement.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
For the full fiscal year, EA now anticipates a mid-single-digit decline in net bookings after initially guiding for mid-single-digit growth. The company pointed to its Global Football unit as the primary reason for the downward revision.
"Global Football had experienced two consecutive fiscal years of double-digit net bookings growth. However, the franchise experienced a slowdown as early momentum in the fiscal third quarter did not sustain through to the end," EA said.
Electronic Arts will release its full fiscal third-quarter earnings report after the market closes on Tuesday, February 4.
Is Electronic Arts stock a buy, sell or hold?
Heading into Thursday's session, Electronic Arts was up 4% on a total return basis (price change plus dividends) in the past 12 months, underperforming the S&P 500's 27% gain. Yet, Wall Street remains bullish on the communication services stock.
According to S&P Global Market Intelligence, the average analyst target price for EA stock is $153.18, representing implied upside of more than 30% to current levels. Additionally, the consensus recommendation is a Buy. However, analysts may revise their ratings and price targets following the company's financial forecast.
Despite Electronic Arts' recent struggles, financial services firm Wedbush late Wednesday reiterated its Outperform rating (equivalent to a Buy) and $173 price target on the large-cap stock.
"EA fumbled badly in Q3 and will be in the penalty box until investors appreciate the magnitude of the earnings shortfall," says Wedbush analyst Michael Pachter. "EA shares may be 'dead money' for another quarter or so, but we remain confident in a rebound once the company provides visibility into its release schedule for fiscal years 2026 and 2027."
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
A Lesson From the School of Rock About the MarketsIt's hard to hold your nerve during a downturn, but next time the markets take a tumble, remember this quick rock 'n' roll tutorial and aim to stay invested.
-
I retired at 65 with $7.8 million and feel like I over-saved. My 40-something son is on the same path. Should I tell him to reconsider?We ask financial experts for advice.
-
A Lesson From the School of Rock (and a Financial Adviser) as the Markets Go Around and AroundIt's hard to hold your nerve during a downturn, but next time the markets take a tumble, remember this quick rock 'n' roll tutorial and aim to stay invested.
-
I'm a Financial Pro: This Is How You Can Guide Your Heirs Through the Great Wealth TransferFocus on creating a clear estate plan, communicating your wishes early to avoid family conflict, leaving an ethical will with your values and wisdom and preparing them practically and emotionally.
-
To Reap the Full Benefits of Tax-Loss Harvesting, Consider This Investment Strategist's StepsTax-loss harvesting can offer more advantages for investors than tax relief. Over the long term, it can potentially help you maintain a robust portfolio and build wealth.
-
Social Security Wisdom From a Financial Adviser Receiving Benefits HimselfYou don't know what you don't know, and with Social Security, that can be a costly problem for retirees — one that can last a lifetime.
-
Take It From a Tax Expert: The True Measure of Your Retirement Readiness Isn't the Size of Your Nest EggA sizable nest egg is a good start, but your plan should include two to five years of basic expenses in conservative, liquid accounts as a buffer against market volatility, inflation and taxes.
-
Dow Adds 472 Points After September CPI: Stock Market TodayIBM and Advanced Micro Devices created tailwinds for the main indexes after scoring a major quantum-computing win.
-
October Fed Meeting: Live Updates and CommentaryThe October Fed meeting is a key economic event, with Wall Street waiting to see what Fed Chair Powell & Co. will do about interest rates.
-
The Delayed September CPI Report is Out. Here's What it Signals for the Fed.The September CPI report showed that inflation remains tame – and all but confirms another rate cut from the Fed.