Shares of Electronic Arts Inc. (EA, Financials) fell sharply in after-hours trading on Wednesday, losing 11.56% to $125.90 following the company's announcement of lowered fiscal year 2025 guidance. The stock had closed the regular session at $142.35, down 0.65%.
Reflecting a drop from prior expectations of a mid-single-digit increase, the video game publisher lowered its fiscal year 2025 net bookings guidance to a range of $7.0 billion to $7.15 billion. Along with GAAP net income of $1.883 billion, the business also projected third-quarter net bookings of $2.215 billion and diluted profits per share of $1.11.
The business clarified that while its Global Football franchise, which had double-digit net bookings increase over the prior two fiscal years, is now expected to see a mid-single-digit fall. EA claims that while early third fiscal quarter momentum showed promise, it did not last the whole term.
Dragon Age also underperformed, with only 1.5 million players during the quarter. EA pointed out that this number fell 50% below their projections.
The leadership of EA showed faith in the long-term plan of the business in face of obstacles. Management noted recent changes to EA SPORTS FC 25, including an annual Team of the Year upgrade and a gameplay overhaul. Early player comments and first outcomes for these improvements have been favorable, they said.
Emphasizing a balanced strategy with an eye on operational efficiency and future development investments, financial leadership stressed Supported by significant franchise releases and strategic investments, EA anticipates fiscal 2026 to offer a comeback in growth.
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