New York, February 4, 2026, 19:47 ET — After-hours
Shares of Electronic Arts (EA.O) slipped 2.3% to close at $196.84 on Wednesday.
The daily price action still holds weight because EA is lingering under the cloud of its agreed take-private deal, where the gap between the stock and offer price can widen sharply at any sign of a delay. Kyle Walters, a private equity analyst at PitchBook, called the move a “green flag on sponsors resuming mega-deal transactions” in a note on the deal. (Reuters)
For now, investors see the latest quarter as a checkpoint to gauge if EA’s major franchises can keep generating cash as the deal moves through approvals. A strong game can boost results, but it doesn’t eliminate the risk of maintaining player engagement after the initial hype dies down.
EA topped third-quarter bookings estimates, buoyed by strong sales of its new “Battlefield” title, Reuters reported Tuesday. Bookings came in at $3.05 billion, surpassing the $2.86 billion forecast compiled by LSEG, though net income dropped to $88 million from $293 million a year earlier. According to industry tracker Circana, “Battlefield 6” emerged as 2025’s best-selling game. Investors are now zeroing in on EA’s ability to sustain user spending without alienating its audience. (Reuters)
EA saw an unusually high volume, with about 10.5 million shares changing hands compared to its 50-day average of roughly 2 million, according to MarketWatch data. The stock traded around 3.9% below its 52-week peak. Despite the decline, EA outperformed some peers tied to videogames, like Take-Two Interactive and Unity Software, amid a mixed day for the broader market. (MarketWatch)
Wall Street closed lower Wednesday, weighed down by concerns over stretched valuations and doubts about how long the AI-driven rally can last, Reuters reported. The slide in major tech stocks was intensified by a steep drop in Advanced Micro Devices. (Reuters)
Risks run in both directions. If regulators slow down approvals or funding gets tighter, the deal spread could widen, dragging the stock lower—even with strong game sales. On the flip side, if EA pushes in-game purchases too aggressively to prop up “Battlefield 6” and other titles, player backlash could hit fast, denting activity and bookings.
EA reported record quarterly net bookings of $3.046 billion and net revenue hitting $1.901 billion. The company declared a quarterly cash dividend of 19 cents per share, payable on March 18 to shareholders of record as of Feb. 25. EA also said it won’t hold an earnings call this quarter due to its pending transaction. The agreed all-cash sale to a consortium that includes Saudi Arabia’s Public Investment Fund, Silver Lake, and Affinity Partners is still on track to close in the first quarter of fiscal 2027, pending usual regulatory approvals and conditions. (Ea)
