EA shares dip nearly 20% after Dragon Age, FC 25 disappoint during the holidays

In brief: Shares of Electronic Arts are down nearly 20 percent after the company warned that earnings for the fiscal third quarter would be lower than initially forecasted due in large part to two franchises that underperformed during the holidays.

As of writing, shares of EA are trading for $115.80. Ahead of the announcement, the stock was changing hands at $142.35.

EA said its global football franchise, which had experienced two consecutive fiscal years of double-digit net bookings growth, hit a rough patch in the fiscal third quarter. Dragon Age also underperformed during the quarter; its 1.5 million players were nearly 50 percent less than EA had anticipated.

As a result, EA revised its third quarter preliminary net bookings. The company now expects approximately $2.215 billion, down from the previous forecast of between $2.4 billion and $2.55 billion. Net revenue, meanwhile, should check in around $1.883 billion; previously, EA had forecasted net revenue in the range of $1.875 billion to $2.025 billion.

EA CEO Andrew Wilson said that despite the hiccups, they remain confident in their long-term strategy and expect a full return to growth in FY26. The executive added that this month, teams conducted a comprehensive gameplay refresh in addition to their annual team of the year update in FC 25, and that early feedback has been encouraging.

CFO Stuart Canfield concurred, adding that as they look to FY26, they expect grow with the launch of more iconic franchises.

Electronic Arts had been at the forefront of soccer games with its popular FIFA franchise, which dates back to 1993. A licensing dispute with FIFA in 2022, however, brought an end to the popular series. The company still makes soccer games, but they’re now under the EA Sports FC brand. The most recent, EA Sports FC 25, launched on September 27, 2024, for most major platforms.

EA is scheduled to release its next earnings report on February 4, and will host a conference call do discuss the results at 5 pm Eastern.