Electronic Arts Inc. (NASDAQ: EA) witnessed a surge of 5.47% in its stock price during the pre-market trading session on Wednesday, February 5, 2025. The rally followed the gaming giant's third-quarter 2025 earnings release, which showcased resilience in its core franchises and strategic initiatives aimed at driving growth.

Despite missing expectations on net bookings, Electronic Arts reported revenue that exceeded analysts' estimates. The company's financial performance was bolstered by robust user engagement and strategic moves to enhance its offerings and cater to evolving player demands.

One of the key developments contributing to the stock's upward momentum was EA's acquisition of TRACAB Technologies, a leader in sports tracking and data analysis solutions. This acquisition is expected to enhance EA SPORTS' capabilities in delivering more authentic and immersive gameplay experiences by leveraging AI, machine learning, and real-time sports data.

Furthermore, the company's core franchises, such as EA SPORTS FC (formerly FIFA) and American Football, continue to demonstrate strong engagement and growth prospects. Despite a temporary slowdown in the Global Football franchise during Q3, EA successfully addressed player feedback with gameplay updates, resulting in a resurgence of momentum during the Team of the Year event.

Additionally, EA announced plans for an accelerated stock repurchase of $1 billion, aiming to reach $2.5 billion in stockholder returns within the first year of its $5 billion authorization. This move reinforces the company's commitment to returning capital to stockholders and its confidence in long-term growth.

Analysts echoed the positive sentiment, with several firms raising their price targets on EA stock and citing the company's resilience, strategic moves, and growth potential. Notably, Wedbush raised its target price to $179 from $173 and maintained an Outperform rating, while Jefferies reiterated its Buy rating with a $155 target, citing positive franchise developments.