Electronic Arts stock price target raised to $183 from $172 at TD Cowen

Published 30/07/2025, 15:38
© Reuters.

Investing.com - TD Cowen has raised its price target on Electronic Arts (NASDAQ:EA) to $183.00 from $172.00 while maintaining a Buy rating on the stock. Currently trading at $153.89 with a market cap of $38.9 billion, EA has received a "GOOD" overall financial health score from InvestingPro analysts.

The price target increase follows Electronic Arts’ fiscal first quarter results, which exceeded both TD Cowen’s and consensus estimates for bookings and EBIT, primarily driven by strong performance in the EA Sports division. The company maintains impressive profitability with a 79.3% gross margin and generates substantial free cash flow of $1.86 billion over the last twelve months.

Electronic Arts management has reiterated its fiscal year 2026 guidance, with TD Cowen now raising its FY26 bookings estimate from $7.80 billion to $7.88 billion, representing 7% year-over-year growth, and increasing its non-GAAP EBIT forecast from $2.60 billion to $2.64 billion.

The revised outlook accounts for a timing shift in FC live service bookings from fiscal Q2 to fiscal Q3 and assumes an FQ3 launch for Battlefield with projected sales of 11.5 million units and over $100 million in live service bookings during the fiscal year.

TD Cowen also noted that the upcoming Battlefield 6 multiplayer reveal on Thursday should provide further key details about the release, which the firm considers an important potential catalyst for Electronic Arts.

In other recent news, Electronic Arts reported a strong first-quarter performance for fiscal year 2026, exceeding both earnings and revenue forecasts. The company achieved earnings per share of $0.79, surpassing the analyst forecast of $0.63. Revenue also exceeded expectations, with Electronic Arts posting $1.3 billion compared to the anticipated $1.24 billion. Additionally, net bookings reached $1.298 billion, beating the consensus estimate of $1.263 billion. Following these results, Benchmark reiterated its Buy rating for Electronic Arts, maintaining a price target of $180.00. The firm’s positive outlook is based on the company’s ability to surpass the high end of its guidance. Despite these strong financial results, the stock experienced a decline during regular trading hours. However, Benchmark remains confident in the company’s future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.