Update shared on27 Aug 2025
Fair value Increased 1.05%Upward revisions to Electronic Arts’ price target reflect much stronger-than-expected player engagement around Battlefield 6’s open beta, supportive legal developments improving digital distribution profitability, and dismissal of short-term negative feedback, resulting in a modest increase in consensus analyst fair value from $172.30 to $174.11.
Analyst Commentary
- Bullish analysts sharply raised Battlefield 6 open beta player base estimates, expecting nearly 20 million participants versus prior forecasts of just over 5 million, indicating a much stronger franchise draw.
- Broadly positive community sentiment and high server demand for Battlefield 6’s open beta point to robust user engagement, outweighing minor criticisms focused on a single game mode.
- Analysis of proprietary console and Steam data flagged the Battlefield 6 beta launch as a major success, bolstering optimism for Electronic Arts’ fiscal 2026 performance.
- A federal court ruling denying Apple's stay in the Epic case is expected to allow app developers—including EA—to offer alternative payment methods in U.S. app stores with no commissions, structurally improving digital distribution economics for at least the next two years.
- Bearish analysts’ concerns around short-term negative feedback were dismissed, with most deeming the impact immaterial to Battlefield 6’s overall positive market reception.
What's in the News
- EA's flagship "EA Sports FC 25" remains the overall best-selling game in Europe for 2025 to date, while its new release "Split Fiction" was surpassed by Ubisoft's "Assassin's Creed Shadows" as the top-selling new game (The Game Business).
- Major sports titles have launched or been announced, including "EA SPORTS Madden NFL 26" (with advanced AI and expanded gameplay features), "EA SPORTS NHL 26" (featuring real NHL EDGE data for authentic play), and "EA SPORTS College Football 26" (emphasizing immersive game modes and new music partnerships) (Company Announcements).
- "Battlefield 6" was unveiled with significant enhancements to gameplay, new multiplayer and single player modes, and launches October 10, 2025; the creative Portal mode returns with more power for user-generated content (Company Announcements).
- A new entry in the "skate." franchise will enter Early Access on September 16, 2025, across PlayStation, Xbox, and PC, emphasizing cross-platform accessibility and community feedback; frequent seasonal updates and content expansions are planned (Company Announcements).
- Electronic Arts completed a $375 million share buyback in Q2 2025 (cumulative $2.7 billion, 7.44% of shares repurchased) and reaffirmed FY26 earnings guidance with projected annual revenue of $7.1–$7.5 billion and net income of $795–$974 million (Buyback Update, Corporate Guidance).
Valuation Changes
Summary of Valuation Changes for Electronic Arts
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $172.30 to $174.11.
- The Future P/E for Electronic Arts remained effectively unchanged, moving only marginally from 31.25x to 31.57x.
- The Discount Rate for Electronic Arts remained effectively unchanged, moving only marginally from 9.13% to 9.12%.
Disclaimer
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