Electronic Arts Surpasses Q2 Revenue Expectations, Raises Year-End Outlook

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Electronic Arts Surpasses Q2 Revenue Expectations, Raises Year-End Outlook

REDWOOD CITY, Calif. - Electronic Arts (NASDAQ:EA) reported better-than-expected second-quarter revenue and raised its full-year outlook, leading to a 1.2% increase in the company's shares in after-hours trading.

The video game publisher announced second-quarter revenue of $2.08 billion, surpassing analysts' estimates of $2.04 billion, and marking a 6% year-over-year increase. However, adjusted earnings per share were $1.11, significantly below the consensus estimate of $2.02.

Net bookings, which include deferred revenue, reached a second-quarter record of $2.079 billion, exceeding the company's guidance range of $2.050 billion. Strong performance was driven by the EA SPORTS portfolio, with American Football expected to achieve over $1 billion in net bookings for fiscal year 2025.

EA's CEO Andrew Wilson stated, "EA had another strong quarter with record levels of second-quarter net bookings, thanks to our incredible teams, extensive portfolio, and technology leadership. The momentum in our business reinforces our strategic vision of delivering innovative experiences and interactive entertainment that deepen and expand engagement across our global communities."

EA forecasts revenue in the range of $2.4 billion to $2.55 billion for the third quarter, comparable to analysts' expectation of $2.535 billion. The company raised its full-year revenue outlook from a previous range of $7.3 billion to $7.7 billion to a new range of $7.5 billion to $7.8 billion.

EA's CFO Stuart Canfield expressed confidence in the company's ability to create long-term value through increased scale, top-line growth, improved margins, and higher cash flow.

The company's live service offerings continued to perform well, with Global Football showing growth across all platforms in the second quarter. The Sims 4 also expanded its player base, gaining over 15 million new players last year.

During the quarter, EA repurchased 2.6 million shares for $375 million and announced a quarterly cash dividend of $0.19 per share.