Shares of Digital Arts Inc. (NASDAQ: EA) had been up over 4% on Wednesday. The inventory has dropped 11% over the previous one month. The online game firm confronted quite a few challenges within the third quarter of 2025 which impacted its efficiency and led it to decrease its outlook for the complete yr. EA expects its enterprise to achieve traction in fiscal yr 2026 because it continues to sort out these headwinds and revamp its portfolio.
Q3 numbers
Digital Arts noticed its revenues decline and earnings develop within the third quarter of 2025. Revenues decreased 3% year-over-year to $1.88 billion. Earnings grew 4% to $1.11 per share in comparison with the year-ago quarter.
Enterprise efficiency
EA’s internet bookings for Q3 2025 declined 6% YoY to $2.21 billion. Full sport bookings noticed a 3% drop whereas bookings for stay companies and different fell 8% versus final yr. The corporate witnessed lower-than-expected engagement for a few of its franchises, which impacted its enterprise efficiency.
Its new sport Dragon Age: The Veilguard underperformed through the quarter, partaking approx. 1.5 million gamers, which was round 50% beneath expectations, reflecting the heavy competitors within the single-player RPG market.
Secondly, after two consecutive fiscal years of double-digit progress in internet bookings, EA’s International Soccer franchise witnessed a mid-single-digit decline YoY within the third quarter of 2025. The softness in HD was partly offset by progress in FC Cell. This softness was pushed by slower acquisition and decrease engagement ranges.
Softer acquisition led to lower-than-expected full sport gross sales of EA SPORTS FC 25. Whereas early acquisitions had been sturdy, post-launch acquisitions slowed down as gamers stayed engaged on older variations of the sport. Decrease-than-expected engagement ranges additionally contributed to the underperformance.
Nevertheless, since its gameplay replace final month, the corporate has seen a pickup in acquisition developments and internet bookings, which offer encouragement for long-term progress in International Soccer.
Outlook
Digital Arts revised its outlook for the complete yr of 2025 to incorporate decrease contributions from Dragon Age: The Veilguard, and decrease bookings from International Soccer. The corporate anticipates a low double digit decline in International Soccer franchise internet bookings for the fourth quarter of 2025. In the meantime, its American Soccer enterprise stays on monitor to surpass $1 billion in internet bookings for FY2025. EA expects internet bookings for FY2025 to be $7.00-7.15 billion, down 4-6% YoY. It expects revenues of $7.25-7.40 billion and EPS of $3.90-4.25 for the yr.
In This fall 2025, internet bookings are anticipated to be $1.44-1.59 billion, down 13% to down 4% YoY, pushed primarily by declines in International Soccer and Apex Legends, partly offset by the discharge of Break up Fiction. Revenues are anticipated to be $1.68-1.83 billion and EPS is anticipated to be $0.65-1.00 in This fall.
