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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.
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