EA in Turmoil! Financial Tsunami Strikes in Q3 2025!
Shares Rise but Investors Panic as Q3 Results Show Major Decline!
In a stunning twist of fate, Electronic Arts Inc. (NASDAQ: EA) saw its shares soar over 4% on Wednesday, despite a catastrophic 11% freefall over the past month! What’s going on? The video game titan is facing storm clouds on the horizon, grappling with a tidal wave of challenges in the third quarter of 2025 that sent its performance plummeting, forcing EA to slash its optimistic full-year outlook!
Q3 Shocker: Revenue Plummets as Earnings Slightly Jump!
In a bizarre turn of events for the multimedia giant, EA reported revenues tanking by 3% year-over-year, landing at a staggering $1.88 billion! On the flip side, earnings shifted slightly upward, growing a mere 4% to $1.11 per share compared to a year ago. But is this just smoke and mirrors?
Business Breakdown: Engagement Dips and New Game Flops!
Get ready to be shocked! EA’s net bookings are spiraling downwards, crashing by 6% YoY, totaling just $2.21 billion in Q3 2025! Full game bookings fell off a cliff by 3%, with live services taking a beating too, plummeting 8% compared to last year! The culprit? Lackluster engagement from some beloved franchises.
And let’s not sugarcoat it—EA’s latest release, Dragon Age: The Veilguard, is an epic flop! With only 1.5 million players engaged—50% below expectations—it’s clear the competition in the single-player RPG arena is cutthroat!
The company’s powerhouse, the Global Football franchise, also took a hit, showing mid-single-digit declines after two years of skyrocketing growth. Players seem more interested in sticking with older versions rather than diving headlong into EA SPORTS FC 25. Really, what happened to everyone’s favorite virtual football fix?
But wait! There’s a glimmer of hope! Following a gameplay update last month, acquisition trends are finally seeing a bit of life. Can it lead to a miraculous comeback for Global Football? Stay tuned!
Outlook: A Gloomy Forecast Ahead!
Buckle up, because EA has revised its 2025 outlook and it’s grim! The forecast now includes dismal projections for Dragon Age: The Veilguard and a gloomy view of its Global Football’s net bookings—a low double-digit decline in Q4! Although American Football keeps raking in the cash and is projected to bring in over $1 billion for FY2025, the overall picture isn’t pretty. EA now expects net bookings for FY2025 to linger between $7.00-7.15 billion—a staggering drop of 4-6% YoY! Revenues? They’ll be between $7.25-7.40 billion, with an EPS between $3.90-4.25.
As EA braces for these rocky waves ahead, net bookings for Q4 are anticipated to plummet between $1.44-1.59 billion—a hair-raising decline of 13% to 4% YoY! Factors pulling down this beast of a franchise include faltering Global Football momentum and Apex Legends fatigue, though the upcoming release of Split Fiction could potentially save the day!
With such a twisting saga of triumph and turmoil, will EA manage to steer the ship back on course? Only time will tell!
