TLDR
- EA stock hit an all-time high of $204.89, up 30.1% over the past year
- Market cap now stands at $51.35 billion with a 79% gross profit margin
- A private equity consortium including Saudi Arabia’s PIF is seeking EU approval for a $55 billion buyout
- The EU has set a July 30 deadline for its Foreign Subsidies Regulation decision
- Q4 earnings missed estimates, but full-year net bookings hit a record $8.026 billion, up 9%
Electronic Arts stock hit an all-time high of $204.89 on Wednesday, extending a 30.1% gain over the past year as investors eye a potential $55 billion buyout of the gaming company.
The stock is now trading above its InvestingPro Fair Value, which flags it as potentially overvalued at current levels.
EA’s market cap sits at $51.35 billion. The company carries a gross profit margin of 79%, and according to InvestingPro, has remained profitable over the last twelve months.
The run-up comes as a consortium of investors, including Saudi Arabia’s Public Investment Fund, filed for EU subsidy approval on Wednesday for their planned acquisition of EA.
The European Commission confirmed the filing under its Foreign Subsidies Regulation, a set of rules designed to prevent unfair non-EU government subsidies from distorting competition within the 27-country bloc.
The Commission has set a July 30 deadline for its preliminary decision. It can either clear the deal unconditionally or open a full-scale investigation if it finds serious concerns.
The deal is also being reviewed separately under the EU’s standard merger rules, meaning the acquisition faces two parallel regulatory processes in Europe.
Argus downgraded EA’s stock rating to Hold from Buy, citing the approaching completion of the private equity consortium buyout expected this month.
Q4 Misses, But Full Year Sets Records
EA’s fourth-quarter results fell short of Wall Street expectations. Adjusted EPS came in at $1.81, against an analyst consensus of $2.39. Net bookings of $1.86 billion also missed the $1.98 billion estimate.
The full fiscal year 2026 told a different story. EA posted record net bookings of $8.026 billion, a 9% increase year-over-year. Net revenue rose 1% to $7.531 billion.
Operating cash flow hit a record $2.553 billion for the year, up 23% from the prior year.
Franchises Holding Up
Raymond James flagged strong performance data for EA in May, calling out solid results from Apex Legends and EA Sports FC as standout performers.
Options activity also picked up, with EA contracts reaching 6,854, reflecting increased market interest around the stock.
EA currently trades near its 52-week high. InvestingPro lists 10 additional tips for subscribers on the stock’s current positioning.
The EU’s July 30 deadline for its Foreign Subsidies Regulation review is the next key date to watch for the proposed $55 billion deal.
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