With a market cap of $50.4 billion, Digital Arts Inc. (EA) is a number one world developer, writer, and distributor of interactive online game content material throughout consoles, PCs, cell gadgets, and tablets. With fashionable franchises like EA SPORTS FC, Battlefield, The Sims, and Apex Legends, EA generates income via sport gross sales, downloadable content material, subscriptions, microtransactions, and promoting.
Shares of the Redwood Metropolis, California-based firm have outperformed the broader market over the previous 52 weeks. EA inventory has elevated 23.7% over this time-frame, whereas the broader S&P 500 Index ($SPX) has rallied 12.6%. Furthermore, shares of the corporate are up 37.6% on a YTD foundation, in comparison with SPX’s 14.6% achieve.
Focusing extra carefully, shares of the online game maker have additionally exceeded the Communication Providers Choose Sector SPDR ETF Fund’s (XLC) 15.2% return over the previous 52 weeks and a 15.6% YTD achieve.
EA shares fell marginally following its Q2 2026 outcomes on Oct. 28 as the corporate reported adjusted EPS of $1.21 and adjusted income of $1.82 billion, lacking expectations. Bookings additionally disillusioned, dropping 13% to $1.82 billion, reflecting softer gamer spending and hard comparisons to final yr’s sturdy “School Soccer 25” launch. Moreover, web revenue fell sharply to $137 million from $294 million a yr earlier, elevating issues regardless of sturdy early gross sales of “Battlefield 6.”
For the fiscal yr ending in March 2026, analysts count on Digital Arts’ EPS to develop 30.9% year-over-year to $6.35. The corporate’s earnings shock historical past is combined. It beat the consensus estimates in two of the final 4 quarters whereas lacking on two different events.
Among the many 24 analysts masking the inventory, the consensus ranking is a “Maintain.” That’s primarily based on 4 “Sturdy Purchase” scores, two “Reasonable Purchase,” 17 “Holds,” and one “Sturdy Promote.”
This configuration is much less bullish than three months in the past, with 10 “Sturdy Purchase” scores on the inventory.
On Oct. 31, Morgan Stanley’s Matthew Price reaffirmed a “Maintain” ranking on Digital Arts and set the value goal at $210.
The imply value goal of $202.60 represents a marginal premium to EA’s present value ranges. The Road-high value goal of $250 suggests a 24.2% potential upside.
On the date of publication, Sohini Mondal didn’t have (both instantly or not directly) positions in any of the securities talked about on this article. All info and information on this article is solely for informational functions. This text was initially printed on Barchart.com
