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On Wednesday, Goldman Sachs updated its outlook on Electronic Arts (NASDAQ:EA) shares, raising the price target to $155.00 from the previous target of $135.00. Currently trading at $154.54, EA sits near Goldman’s target, with analyst targets ranging from $126 to $179. According to InvestingPro analysis, the stock appears fairly valued based on its proprietary Fair Value model. Despite the increase, the firm maintained a Neutral rating on the stock.
Electronic Arts recently disclosed its fourth fiscal quarter 2025 results along with forward-looking commentary for the fiscal year 2026. With an impressive 79% gross profit margin and strong financial health score of "GREAT" on InvestingPro, the company’s discussion highlighted several key points, including the introduction of new titles that align with the medium-term growth objectives outlined during the Investor Day in September 2024. Notably, the sports gaming sector, despite past fluctuations with EA FC, appears to have reached a stable growth trajectory. This stability is anticipated to continue over multiple years, particularly as the company explores the intersection of gaming, sports entertainment, and mobile platforms to enhance user experiences.
Additionally, Goldman Sachs noted that the Battlefield franchise is expected to become a significant contributor later in fiscal year 2026, with a game reveal slated for the upcoming summer. However, the firm also identified Apex Legends as a potential challenge for the company.
Management’s focus remains steadfast on achieving the company’s margin targets and continuing to return capital to shareholders. This strategic emphasis is part of Electronic Arts’ broader efforts to sustain growth and profitability in the competitive gaming industry.
In other recent news, Electronic Arts (EA) reported its fourth-quarter fiscal year 2025 earnings, revealing a revenue of $1.9 billion, which exceeded the forecasted $1.55 billion. Despite this, the company’s earnings per share (EPS) of $0.98 fell short of the anticipated $1.08. Analysts at BofA Securities and BMO Capital Markets raised their price targets for EA to $166, citing strong performance from EA’s core franchises and successful new releases. BofA Securities highlighted the impressive sales of the newly launched game Split Fiction™, which nearly doubled initial forecasts, while BMO Capital emphasized the resurgence of EA Sports FC and the company’s robust fiscal year 2026 guidance.
DA Davidson also adjusted its price target for EA, increasing it to $150 from $140, while maintaining a Neutral rating. The firm noted expectations for future growth driven by new titles in the Battlefield and Skate franchises. Raymond (NSE:RYMD) James maintained a Market Perform rating on EA shares, acknowledging the company’s strong quarterly performance and promising outlook for fiscal year 2026. Analysts noted that EA’s guidance suggests robust growth potential, bolstered by upcoming game launches and sustained momentum from key franchises. The gaming giant’s ability to exceed internal expectations and maintain steady growth in its flagship sports titles has contributed to increased investor confidence.
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