Electronic Arts’ second quarter results were met with a positive market reaction, with revenue and profit both surpassing Wall Street expectations. Management credited the performance to deepening engagement across its core sports franchises, notably Global Football (FC), Madden NFL, and the continued momentum of Apex Legends. CEO Andrew Wilson highlighted that “community events like Team of the Season and innovative integrations, such as live MLS matches in FC Mobile, drove player engagement and retention.” The company also benefited from strong catalog sales and new content, particularly within its live service portfolio.
Is now the time to buy EA? Find out in our full research report (it’s free).
Electronic Arts (EA) Q2 CY2025 Highlights:
- Revenue: $1.67 billion vs analyst estimates of $1.56 billion (flat year on year, 7.4% beat)
- EPS (GAAP): $0.79 vs analyst estimates of $0.63 (25.7% beat)
- Adjusted EBITDA: $156 million vs analyst estimates of $101.2 million (9.3% margin, 54.2% beat)
- The company reconfirmed its revenue guidance for the full year of $7.3 billion at the midpoint
- EPS (GAAP) guidance for the full year is $3.44 at the midpoint, missing analyst estimates by 6.9%
- Operating Margin: 16.2%, down from 21.9% in the same quarter last year
- Market Capitalization: $44.06 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Electronic Arts’s Q2 Earnings Call
- Douglas Lippl Creutz (TD Cowen) asked about pricing strategy for new releases, particularly Battlefield. CEO Andrew Wilson replied that EA will maintain its current broad pricing approach, offering options from free-to-play to premium editions, with no major changes planned this year.
- Colin Alan Sebastian (Baird) inquired about live services growth excluding Apex Legends and expectations for new launches. CFO Stuart Canfield explained low single-digit live service growth outside Apex and emphasized ongoing momentum for upcoming titles.
- Eric Owen Handler (ROTH Capital) questioned cohort spending trends in FC Ultimate Team. Canfield noted strong engagement and retention, especially from new player cohorts, and highlighted the continued expansion of value-added features across platforms.
- James Edward Heaney (Jefferies) asked about the marketing strategy for Battlefield 6. Wilson described a significant increase in investment and a shift toward platform-building, with global influencer events and extended go-to-market campaigns.
- Cory Alan Carpenter (JPMorgan) sought details on the impact of recent changes to App Store economics. Wilson and Canfield commented that EA plans to meet players on their preferred platforms and is expanding web store adoption to reduce transaction friction and improve profitability.
Catalysts in Upcoming Quarters
Looking forward, our analysts will closely monitor (1) the commercial performance and player adoption of Battlefield 6 and FC 26, (2) the ability of live service content updates to sustain engagement across major franchises, and (3) evidence that recent marketing and development investments translate into profitable growth. Additionally, we will watch for further updates on mobile monetization strategies and the impact of competitive dynamics in both sports and shooter genres.
Electronic Arts currently trades at $176.50, up from $147.76 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
Our Favorite Stocks Right Now
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.