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Research Alert: Ea Reports Strong End To Fy 26, Pending Acquisition Still On Track

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

EA delivered record net bookings of $8.026B (+9% Y/Y) and operating cash flow of $2.553B (+23% Y/Y), with Q4 net bookings of $1.864B (+4% Y/Y) and diluted EPS surging to $1.81 (+85% Y/Y). Operating margin recovered to 27% in Q4 (+580 bps Y/Y) after quarters of compression from elevated investment spending. We believe the results validate management's heavy investment strategy, with Battlefield 6 achieving record franchise performance and Apex Legends delivering its strongest quarterly performance. Management suspended earnings calls and forward guidance during the pending acquisition but indicated constructive regulatory engagement for the $55B transaction. The PIF/Silver Lake/Affinity Partners consortium's all-cash deal values EA at $210 per share with closure expected in Q1 FY27. We expect the successful execution of Battlefield 6 and margin recovery show the investment cycle is generating returns, though full benefits may accrue to the acquiring consortium.

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