Electronic Arts stock rating reiterated at Buy by Benchmark ahead of Q1 results

Investing.com - Benchmark maintained its Buy rating on Electronic Arts (NASDAQ:EA) with a price target of $180.00 ahead of the company’s upcoming fiscal first-quarter 2026 earnings report. According to InvestingPro data, analyst targets for EA range from $127 to $210, with the stock currently trading at a P/E ratio of 36.2x.

Electronic Arts is scheduled to report its Q1 2026 financial results on July 29, with the company having previously guided for quarterly net bookings between $1.175 billion and $1.275 billion.

The company’s earnings per share guidance ranges from a loss of $0.05 to a profit of $0.15 per share, which EA attributed to ongoing pressure in Apex Legends, softer catalog performance, and timing of the FC Team of the Season event.

Current market consensus estimates project EA will report net bookings of $1.245 billion and adjusted earnings per share of $0.10 for the quarter.

Benchmark expects Electronic Arts to exceed its first-quarter projections and reiterate its full-year fiscal 2026 guidance when it reports later this month.

In other recent news, Electronic Arts has released F1® 25, the latest installment in its Formula One game series. The game offers enhanced features like My Team 2.0 and the return of the Braking Point story mode, alongside new customization options for players. Benchmark analysts have raised their price target for Electronic Arts to $180, citing strong fourth-quarter performance, with significant growth in net bookings and adjusted earnings per share. TD Cowen also increased its price target to $172, highlighting impressive earnings and bookings that surpassed expectations, and expressing optimism about upcoming titles like Battlefield and Skate. However, MoffettNathanson downgraded Electronic Arts to Neutral, setting a price target of $163, due to concerns about the company’s growth stability and stock valuation. Goldman Sachs raised its price target to $155 while maintaining a Neutral rating, noting the stability in the sports gaming sector and the anticipated contribution of the Battlefield franchise in fiscal year 2026. These developments reflect a mix of optimism and caution among analysts regarding Electronic Arts’ future performance and strategic initiatives.

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