Electronic Arts (EA) isn’t starting its fiscal year with the kind of momentum investors were hoping for. On Tuesday, the gaming giant issued a second-quarter bookings forecast that came in below Wall Street expectations, sending its stock down more than 2% in after-hours trading.
The shortfall comes at a time when consumer spending especially on discretionary items like video games is becoming increasingly cautious. With inflationary pressure driven by shifting U.S. trade policies even dedicated fans of EA’s popular sports franchises are tightening their belts.
EA’s updated guidance also reflects a timing change: the company said a four percentage point year-over-year headwind was due to changes in how it accounts for returns on the Ultimate Edition of FC 26. Those revenues will now hit the books in Q3 instead of Q2.
Despite the tough forecast, EA has been busy on the release front. Earlier this month, it launched College Football 26, the follow-up to last year’s surprise hit that revived the beloved franchise after more than a decade. But analysts are tempering expectations this time, cautioning that it will be difficult to match the breakout success of 2024’s edition. EA itself expects a more “normalized curve” in sales for the title though the launch of Madden NFL 26 should help soften that dip.
The company is also pinning high hopes on Battlefield 6, which got its first trailer last week. After the previous Battlefield installment failed to live up to fan expectations, EA is betting big that this new entry will bring the franchise back to form. It’s slated to launch later this fiscal year, with analysts predicting strong sales.
Looking at the numbers, EA expects second-quarter bookings in the range of $1.80 billion to $1.90 billion well below analysts’ forecast of $2.01 billion, according to LSEG data. Still, the company posted solid first-quarter results, with bookings of $1.30 billion, slightly beating expectations of $1.29 billion.
Despite the near-term softness, EA reaffirmed its full-year bookings outlook, signaling that it still sees strength in its broader slate and long-term strategy.
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