Electronic Arts (EA) to Report Q1 Earnings: What's in the Cards?

Electronic Arts EA is set to report first-quarter fiscal 2026 results on July 29.

For first-quarter fiscal 2026, EA expects GAAP revenues between $1.55 billion and $1.65 billion and earnings per share in the range of 49 cents to 66 cents. 

The Zacks Consensus Estimate for earnings has remained steady at 10 cents per share in the past 30 days. The figure indicates an 80.77% decline from the year-ago quarter’s reported figure.

The consensus mark for revenues is pegged at $1.24 billion, suggesting a 1.72% decrease from the year-ago quarter’s reported figure.

The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing once, the average surprise being 15.06%.

Electronic Arts Inc. Price and EPS Surprise

Electronic Arts Inc. price-eps-surprise | Electronic Arts Inc. Quote

Let’s see how things have shaped up for this announcement.

Factors to Consider

Electronic Arts is approaching its first-quarter fiscal 2026 results with expectations shaped by seasonal factors and strategic product launches. 

The quarter is expected to have benefited from the positive momentum in EA Sports FC that began in fourth-quarter fiscal 2025, where a January gameplay update reignited player engagement and delivered strong performance beyond management's initial projections. This momentum carried into the new fiscal year, with early fiscal first-quarter performance showing positive net bookings trends in the franchise. EA expects fiscal first-quarter net bookings in the range of $1.175 billion and $1.275 billion.

The company's American Football ecosystem, which generated over $1 billion in net bookings during fiscal 2025, is likely to have faced seasonal headwinds typical for the fiscal first quarter. However, several key product announcements are likely to have supported engagement levels throughout the to-be-reported quarter. The company revealed that Super Bowl champion Saquon Barkley would serve as the cover star for Madden NFL 26, potentially driving pre-order activity and maintaining franchise visibility during the traditionally slower summer months.

EA's sports portfolio received additional reinforcement with the worldwide launch of F1 25 on May 30, bringing the official 2025 FIA Formula One World Championship experience to players. The announcement of EA Sports College Football 26's July 10 launch date, just after the quarter's end, is likely to have generated anticipation and could have positively influenced late-quarter engagement in existing American Football titles.

The integration of new technologies continued to play a role, with EA's introduction of Javelin Anticheat on April 24 potentially improving player experience across multiplayer titles. The strategic partnership with Major League Soccer, enabling EA Sports FC Mobile players to watch select MLS matches through the in-game portal, represented an innovative approach to cross-platform engagement that could have driven mobile user activity in the to-be-reported quarter.

Apex Legends faced ongoing challenges that began in previous quarters, with management previously indicating an expected 40% year-over-year decline in net bookings for fiscal 2026. This headwind, combined with typical first-quarter seasonality factors, likely put pressure on overall performance despite strengths in the sports portfolio.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. 

EA currently has an Earnings ESP of +53.06% and carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Allegro Micro Systems ALGM, Alkami Technology ALKT and Meta Platforms META are some better-ranked stocks that investors can consider in the broader Computer and Technology sector.

Allegro Micro Systems, Alkami Technology and Meta Platforms sport a Zacks Rank of 1 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Allegro Micro Systems shares have gained 65.8% year to date. ALGM is scheduled to release first-quarter fiscal 2026 results on July 31.

Alkami Technology shares have plunged 23.3% year to date. ALKT is set to report its second-quarter 2025 results on July 30.

Meta Platforms shares have returned 20.5% year to date. META is scheduled to release second-quarter 2025 results on July 30.

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This article originally published on Zacks Investment Research (zacks.com).

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