Electronic Arts Inc (NASDAQ:EA) stock rose 0.35% (As on May 7, 11:27:53 AM UTC-4, Source: Google Finance) after the company reported better-than-expected fiscal fourth-quarter results as well as upbeat guidance for the current quarter as its EA sports gaming titles continued to attract gamers. Net bookings for Q4 rose to $1.8B, up from $1.67B the same period a year ago. The EA SPORTS portfolio delivered another record net bookings year in FY25. EA’s American Football franchise exceeded expectations and reached over $1 billion in net bookings in FY25. Celebrating its 25th birthday, The Sims franchise continues its strong momentum with double digit growth in the quarter. In EA SPORTS FC, player monetization was up double digits, starting with the mid-January gameplay update. Split Fiction has sold nearly 4 million units since its hugely successful launch in March.

EA in the fourth quarter of FY25 has reported the adjusted earnings per share of 98 cents, beating the analysts’ estimates for the adjusted earnings per share of 91 cents. The company had reported the adjusted revenue growth of 35.9 percent to $1.90 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $1.55 billion.

Additionally, Net cash provided by operating activities was $549 million for the quarter and $2.079 billion for the fiscal year.  EA repurchased 9.8 million shares for $1.375 billion during the quarter, bringing the total for the fiscal year to 17.6 million shares for $2.500 billion. EA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock. The dividend is payable on June 18, 2025 to stockholders of record as of the close of business on May 28, 2025.

For Q1, the company forecast EPS of $0.49 to $0.66 on revenue of $1.550B to $1.650B, beating estimates of $0.33 and $1.27B, respectively. Net bookings were guided in a range of $1.175B to $1.275B.

Looking to fiscal 2026, the company guided EPS in a range of $3.09 to $3.79 on revenue of between $7.1B and $7.5B, compared with estimates for EPS of $4.17 and revenue of $7.15B. Net bookings were expected in a range of $7.6B to $8B. Year-over-year net bookings growth in fiscal year 2026 is expected to be driven by the EA SPORTS portfolio, The Sims, and the launches of Battlefield and skate., partially offset by approximately 5 points of weakness in catalog and Apex Legends. The Company expects continued growth in live services, as well as the launch of new non-annual titles in fiscal year 2027.