EA Earnings: Sports Strength Offsets Apex Weakness

Electronic Arts’ third-quarter results were broadly in line with our expectations, based largely on the outlook the firm had provided. Regarding the fourth quarter and fiscal 2025, management expects somewhat weaker revenue growth than we had forecast but with stronger margin expansion. The firm plans to focus efforts on key franchises Sports FC, Madden NFL, Apex Legends, Battlefield, and The Sims, with a relatively modest release slate over the next year but accelerating beyond that. Our fair value estimate remains $150.