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Electronic Arts (EA) recently announced its Q3 FY25 earnings, revealing a mix of successes and challenges across its portfolio. The company reported net bookings of $2.215 billion for the quarter, with notable performances from several franchises.
EA SPORTS FC 25 continued its strong momentum, achieving record success with the Team of the Year event, driving engagement levels above expectations. The franchise has grown more than 70% over the last five fiscal years, making it one of the biggest sports entertainment properties in the world.
American Football also saw double-digit growth in weekly active users year-over-year, and remains on pace to surpass $1 billion in net bookings for fiscal year 2025.
However, not all games performed as expected. Dragon Age: The Veilguard, despite receiving positive reviews from critics and players, did not resonate with a broad audience. EA CEO Andrew Wilson attributed this to the game’s lack of live service features, which are increasingly sought after by modern gamers. The game’s sales performance missed projections by 50%, reaching only about 1.5 million players.
Despite these challenges, EA remains confident in its long-term strategy and has announced a $1 billion accelerated stock repurchase program, bringing total stock repurchases to $2.5 billion within the first year of its $5 billion authorization.
Despite the strong performance in certain areas, EA faces challenges in maintaining its growth trajectory. Analysts have noted that EA’s revenue guidance for the next quarter is lower than expected, with adjusted earnings projected at $3.08 per share.
The company has missed Wall Street’s revenue estimates four times over the last two years, indicating potential volatility in its financial performance.