Wedbush Has Negative Outlook for Electronic Arts Q1 Earnings

Electronic Arts Inc. (NASDAQ:EA) – Investment analysts at Wedbush reduced their Q1 2026 EPS estimates for shares of Electronic Arts in a research report issued to clients and investors on Wednesday, May 7th. Wedbush analyst M. Pachter now forecasts that the game software company will earn ($0.36) per share for the quarter, down from their prior forecast of ($0.02). Wedbush currently has a “Outperform” rating and a $210.00 target price on the stock. The consensus estimate for Electronic Arts’ current full-year earnings is $4.71 per share. Wedbush also issued estimates for Electronic Arts’ Q2 2026 earnings at $1.67 EPS, Q3 2026 earnings at $3.62 EPS, Q4 2026 earnings at $1.27 EPS, FY2026 earnings at $6.16 EPS, Q1 2027 earnings at ($0.06) EPS, Q2 2027 earnings at $1.69 EPS, Q3 2027 earnings at $3.74 EPS, Q4 2027 earnings at $1.44 EPS and FY2027 earnings at $6.78 EPS.

Several other equities research analysts have also commented on EA. HSBC raised Electronic Arts from a “hold” rating to a “buy” rating and set a $190.00 price target on the stock in a research note on Wednesday, May 7th. BMO Capital Markets decreased their target price on Electronic Arts from $145.00 to $142.00 and set a “market perform” rating on the stock in a research report on Wednesday, February 5th. JPMorgan Chase & Co. raised their price target on Electronic Arts from $135.00 to $160.00 and gave the company a “neutral” rating in a research report on Wednesday, May 7th. Oppenheimer boosted their price objective on shares of Electronic Arts from $170.00 to $185.00 and gave the stock an “outperform” rating in a research report on Wednesday, May 7th. Finally, UBS Group increased their price objective on shares of Electronic Arts from $152.00 to $167.00 and gave the company a “neutral” rating in a research note on Wednesday, May 7th. Fifteen equities research analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $161.83.

Electronic Arts Stock Down 0.1%

EA stock opened at $149.06 on Monday. Electronic Arts has a 52 week low of $115.21 and a 52 week high of $168.50. The company has a current ratio of 1.38, a quick ratio of 1.38 and a debt-to-equity ratio of 0.25. The company has a market cap of $38.85 billion, a P/E ratio of 37.93, a P/E/G ratio of 3.58 and a beta of 0.74. The company’s 50-day moving average price is $143.91 and its 200 day moving average price is $144.95.

Hedge Funds Weigh In On Electronic Arts

A number of hedge funds have recently made changes to their positions in EA. Vanguard Group Inc. boosted its position in shares of Electronic Arts by 0.5% in the first quarter. Vanguard Group Inc. now owns 29,052,085 shares of the game software company’s stock worth $4,198,607,000 after buying an additional 150,438 shares during the period. Capital International Investors lifted its position in Electronic Arts by 5.2% during the 4th quarter. Capital International Investors now owns 12,156,791 shares of the game software company’s stock worth $1,778,553,000 after acquiring an additional 605,796 shares in the last quarter. Geode Capital Management LLC boosted its holdings in Electronic Arts by 0.5% in the 4th quarter. Geode Capital Management LLC now owns 6,702,586 shares of the game software company’s stock worth $978,650,000 after acquiring an additional 30,929 shares during the period. Massachusetts Financial Services Co. MA grew its position in Electronic Arts by 6.5% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 4,430,409 shares of the game software company’s stock valued at $648,169,000 after acquiring an additional 270,991 shares in the last quarter. Finally, Invesco Ltd. raised its stake in shares of Electronic Arts by 15.6% during the first quarter. Invesco Ltd. now owns 3,733,481 shares of the game software company’s stock valued at $539,563,000 after purchasing an additional 504,760 shares during the period. Hedge funds and other institutional investors own 90.23% of the company’s stock.

Insider Activity

In other news, insider Vijayanthimala Singh sold 1,000 shares of Electronic Arts stock in a transaction dated Tuesday, April 1st. The stock was sold at an average price of $145.00, for a total value of $145,000.00. Following the transaction, the insider now directly owns 26,216 shares of the company’s stock, valued at $3,801,320. The trade was a 3.67% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider Laura Miele sold 2,500 shares of the business’s stock in a transaction dated Thursday, May 8th. The stock was sold at an average price of $155.57, for a total value of $388,925.00. Following the sale, the insider now owns 40,189 shares of the company’s stock, valued at $6,252,202.73. The trade was a 5.86% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 22,000 shares of company stock valued at $3,118,120 in the last 90 days. 0.22% of the stock is currently owned by insiders.

Electronic Arts Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, June 18th. Shareholders of record on Wednesday, May 28th will be issued a $0.19 dividend. This represents a $0.76 annualized dividend and a yield of 0.51%. The ex-dividend date is Wednesday, May 28th. Electronic Arts’s dividend payout ratio (DPR) is 17.92%.

About Electronic Arts

Electronic Arts Inc develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and license games from others, including FIFA, Madden NFL, UFC, and Star Wars brands.