Electronic Arts Stock: Is EA Underperforming the Communication Services Sector?
Redwood City, California-based Electronic Arts Inc. (EA) is a digital interactive entertainment company. Valued at a market cap of $37 billion, the company develops, markets, publishes, and delivers games, content, and services for game consoles, PCs, and mobile phones worldwide.
Companies worth $10 billion or more are generally classified as “large-cap” stocks, and Electronic Arts fits this description perfectly. The company develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation.
Shares of Electronic Arts have dipped 12.4% from its 52-week high of $168.50. EA stock has risen 7.1% over the past three months, outperforming the Communication Services Select Sector SPDR Fund’s (XLC) 8.4% decrease.
In the longer term, Electronic Arts’ stock has gained marginally on a YTD basis, lagging behind XLC’s 7.9% increase. Additionally, over the past 52 weeks, shares of EA have soared 8%, compared to XLC's 23.3% rise.
Despite few fluctuations, the stock has been trading above its 50-day moving average since early March. Also, it has risen above its 200-day moving average since late April.
Shares of Electronic Arts recovered marginally following day its strong Q4 2025 earnings release on May 6. The company posted revenue of $1.9 billion, up 6.5% year-over-year, driven by strong full game sales and exceeding Street expectations. EPS came in at $0.98, marking a 46.3% surge from the year-ago quarter. In addition, EA also announced that monetization for “FC” was up double digits following a January update and revealed the launch of the next Battlefield title, boosting investor confidence.
Looking ahead to fiscal 2026, the company expects net revenue in the range of $7.1 billion to $7.5 billion, with EPS projected between $3.09 and $3.79.
However, rival Roblox Corporation (RBLX) has notably outperformed EA stock. Shares of RBLX have gained 66.2% on a YTD basis and 171% over the past 52 weeks.
Despite EA’s underperformance relative to the sector, analysts are moderately optimistic about its stock’s prospects. EA has a consensus rating of “Moderate Buy” from the 26 analysts covering the stock, and as of writing, it is trading below the mean price target of $168.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
