Electronic Arts shares plunged Thursday, a day after slumping demand for its EA SPORTS FC 25 video game prompted the company to cut its outlook.

Electronic Arts, Inc. (EA) stock fell sharply after the video game software maker issued a negative pre-announcement, primarily due to weakness in its soccer video game franchise. Redwood City, California-based Electronic Arts said it expects fiscal year 2025 third-quarter GAAP revenue of $1.

EA now expects net bookings to come in at $2.2 billion for the quarter, down from a prior projection of between $2.4 billion to $2.6 billion.

Wall Street analysts expected EA to earn at least $1.15 per share in fiscal Q3, but the actual news will be worse. To get ahead of the bad news, management decided to "preannounce" earnings last night, and it seems the magic number will be $1.11.

Baird research firm adjusted its outlook on Electronic Arts (NASDAQ:EA) shares, with analyst Colin Sebastian reducing the video game company's price target to $158 from the previous $175, while maintaining an Outperform rating.

Electronic Arts revealed its financial report for the third quarter of the fiscal year. It explicitly admits that Dragon Age: The Veilguard did worse than expected.

Shares of Electronic Arts Inc. plunged 18% Thursday morning, the biggest decline since 2008, after the gaming company warned its financial results would be weaker than expected due to poor sales results of two titles released over the holidays.