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Electronic Arts Inc. (NASDAQ: EA) Quarterly Earnings Preview
Electronic ArtsElectronic Arts(US:EA) Financial Modeling Prepยท2025-10-27 10:00

Core Insights - Electronic Arts Inc. (EA) is a prominent player in the video game industry, known for franchises like FIFA, Madden NFL, and The Sims, and is set to release quarterly earnings on October 28, 2025, with Wall Street estimating EPS of $1.27 and revenue of approximately $1.87 billion [1][6] Financial Performance - Analysts expect EA to report a slight increase in earnings to $1.29 per share and revenue to $1.88 billion for Q2 2026, reflecting cautious optimism [2][6] - The anticipated decline in earnings for the quarter ending September 2025 is attributed to lower revenues, with a predicted 40.9% decrease in EPS year-over-year and a 10.4% decline in revenues [4] Market Metrics - EA's market capitalization is $50.25 billion, with a P/E ratio of 50.34 and a PEG ratio of 3.05, indicating high investor expectations for future earnings growth [3][6] - The stock has shown significant volatility, with a 52-week low of $115.21 and a high of $203.75 [3] Valuation Ratios - EA's financial metrics include a price-to-sales ratio of 6.72 and an enterprise value to sales ratio of 6.78, reflecting its valuation relative to revenue [5] - The enterprise value to operating cash flow ratio is 25.65, highlighting EA's cash flow generation relative to its valuation, while a debt-to-equity ratio of 0.32 indicates a relatively low level of debt [5]