EA Forecasts Lower Q4 Bookings Amid Slowdown in Gamer Spending, Announces $1 Billion Share Repurchase
Electronic Arts (EA) lowered its fourth-quarter bookings forecast on Tuesday, citing weaker-than-expected in-game spending, particularly for its popular “FC 25” soccer franchise. The company now anticipates bookings between $1.44 billion and $1.59 billion for the quarter, below the Wall Street estimate of $1.65 billion. This projection follows a previous reduction in its annual bookings forecast due to a slower-than-expected performance of “FC 25” and its new “Dragon Age” title, exacerbated by the ongoing economic challenges such as high inflation.
Despite the downturn in certain segments, EA remains confident in a recovery, with plans for future growth driven by multiple titles under development, including the next installment of its “Battlefield” series. CEO Andrew Wilson expressed optimism for a return to growth in fiscal year 2026 and beyond. Additionally, EA unveiled a $1 billion share repurchase program, which led to a 3% increase in its share price during extended trading hours.
In a move to enhance its sports offerings, EA recently acquired TRACAB Technologies, a company specializing in tracking technology, to further invest in its sports portfolio, which continues to be a key driver of revenue, particularly in American football titles. EA’s net bookings for sports games, including football, are expected to exceed $1 billion this fiscal year.