Stock Evaluation of Electronic Arts: Analyst Forecasts and Ratings

Hop aboard the gaming train with Electronic Arts Inc. (EA), a Redwood City, CA powerhouse spewing games, content, and services for every electronic device under the sun. With a whopping market cap of $38.4 billion, this gaming juggernaut dishes out digital delight through various channels, including its own online portals, directly to consumers.

The gaming goldmine has put the pedal to the metal, leaving the broader market in the dust over the past year. EA stock has soared an astonishing 17.2% over the past 52 weeks and 2.2% year-to-date (YTD), while the S&P 500 Index ($SPX) has only managed 11.5% growth over the year and a meager 60 bps increase in 2025.

Are you a high net worth individual with $250k burning a hole in your pocket? Meet your financial soulmate with Unbiased. Get a peek behind Wall Street's curtain with our Active Investor newsletter. dig said newsletter.

Let's focus on what's really important - Electronic Arts' performance compared to the VanEck Video Gaming and eSports ETF's (ESPO) surge of 46.3% over the past year and a robust 19.1% YTD.

EA's stock took a minor uptick in the trading session following the release of its Q4 results on May 6. The company's full game revenues galloped, boosting its overall topline by 6.5% year-over-year to $1.9 billion, stunning Street's expectations. EA bulked up its R&D spending by 7.5% year-over-year to $686 million and kept a tight rein on SG&A expenses. This juiced its net income for the quarter, propelling it 39.6% year-over-year to $254 million.

Looking ahead to the current fiscal, ending in March 2026, analysts predict an impressive 24.5% year-over-year growth in EA's earnings to $6.04 per share[2]. However, EA has a roller-coaster history of earnings surprises, satisfying the Street's bottom-line estimates thrice over the past four quarters, but falling short once.

EA sits at a consensus "Moderate Buy" rating overall, with 9 "Strong Buys,"1 "Moderate Buy," and 16 "Holds" among the 26 analysts covering the stock. This configuration remains slightly cautious compared to a month ago when 10 analysts cheered a "Strong Buy" for the stock.

Wedbush analyst Michael Pachter reiterated an "Outperform" rating on EA on May 7 and bumped up the price target from $179 to $210, promising a colossal 40.4% upside potential from current price levels[1]. EA's mean price target of $165.12 presents a tasty 10.4% premium to the current price[1].

On paper, Aditya Sarawgi doesn't have a position in any of the mentioned securities[2]. Consult this Disclosure Policy for more information.

Behind the Scenes:

Analysts' expectations for Electronic Arts' earnings growth in the current fiscal year are buoyant, fueled by powerful performances from top franchises and upcoming releases[3]. For fiscal year 2026, EA offered forward guidance predicating 3-9% growth, a nod to optimism about future earnings[3]. Diluted earnings per share for FY26 are projected to range from $3.09 to $3.79[2][5], hinting at a priority on growth acceleration, particularly ahead of the anticipated launch of Battlefield and other strategic titles.

The current consensus rating on Electronic Arts' stock isn't explicitly spelled out in the available search results. However, the stock saw a 6% jump in aftermarket trading following the Q4 2025 earnings report, signaling investor enthusiasm despite an EPS miss[3]. This reaction suggests that investors generally hold positive sentiments about the company's fate, although specific consensus ratings call for more detailed analyst reports. EA's stock boasts solid financial health but trades at a somewhat hefty P/E multiple of 39x[3]. To gathering the most accurate consensus rating, it's best to consult financial analyst platforms or recent analyst reports for the latest insights.

In the realm of technology, investing in Electronic Arts Inc. (EA) might be an interesting move, given its strong performance over the past year and analyst expectations for a significant earnings growth in the upcoming fiscal year.
As the gaming sector continues to thrive, technology-focused investors may find value in understanding the impact of upcoming releases from EA's top franchises, especially considering the positive sentiment towards the company's stock as indicated by its aftermarket trading following the Q4 2025 earnings report.