Electronic Arts (EA) Q4 FY25 earnings call: guidance and Q&A

What caused the temporary slowdown in FC, how was it fixed, and what are the learnings for future games?

Andrew Wilson explained that slowdowns are not unnatural for large franchises, especially after periods of high growth (COVID, World Cup, FC rebrand). The issues were: 1) lower migration from FC24 to FC25 among new players, and 2) core competitive players found gameplay too defensively tuned. Fixes included personalized marketing to incentivize migration and a major gameplay update based on community feedback. Learnings involve closer work with core cohorts and better incentives for annual transitions.

“The first is we've been growing exceptionally well year-over-year throughout the history of the franchise but certainly through COVID and since COVID. And so we grew a lot. We brought in a lot of new players during COVID and grew the business meaningfully.”

asked by Matthew Cost · answered by Andrew Wilson

Is the commentary on continued live services growth and new non-annual titles in FY27 consistent with the long-term growth profile shared at Investor Day?

Stuart Canfield confirmed that the commentary reinforces conviction in the Investor Day framework, highlighting margin expansion capability and cash flow growth. He reiterated that the company remains on track for the margin framework laid out.

“I think the commentary in the prepared remarks is really to help continue unpack the conviction we have in the framework we put out for Investor Day, give a little bit more context on layering behind the various components and pieces.”

asked by Matthew Cost · answered by Stuart Canfield

What are the key learnings from the Battlefield Labs approach, how do they compare to prior versions, and how should investors think about growth investments for Battlefield in FY26?

Andrew Wilson emphasized that this Battlefield has the biggest team and longest development time, focusing on deep community engagement through Battlefield Labs to tune and balance the game. Stuart Canfield noted that the primary growth investment for FY26 is the go-to-market costs for Battlefield, with R&D being less material as it's been expensed over four years.

“This Battlefield, as we've said many times, is the biggest battlefield we've ever made. And of course, you would expect us to say that, but we've certainly had the biggest team behind it.”

asked by Eric Sheridan · answered by Andrew Wilson

How should investors think about the puts and takes for American Football's growth in the coming year, given the strong performance of College Football 25 last year?

Andrew Wilson stated that American Football (NFL and College) continues to grow in fandom, which acts as a multiplier for EA. The goal is to build the largest digital football fan platform. Stuart Canfield acknowledged that last year was a record year and a tough comp, especially for Q2, but the guidance is pragmatic and balanced, expecting continued growth for the franchise.

“The good news for us is American Football in the context of both NFL and College continues to grow in both fandom and engagement broadly.”

asked by Douglas Creutz · answered by Andrew Wilson

What areas of the business are most macro-sensitive, and what are the learnings from history? How does EA think about pricing power for its IP, and could it adopt higher price points like peers?

Andrew Wilson highlighted the resilience of entertainment, especially EA's biggest franchises, during macro challenges due to the inherent human need for entertainment and the value offered. On pricing, he noted the shift from physical to digital, with pricing ranging from free-to-play to deluxe editions. The focus is on delivering quality and exponential value, which drives business strength regardless of price point. Stuart Canfield added that guidance reflects no change in strategy.

“Entertainment is a fundamental human need. It's been with us since the beginning of time. At this point in time, our form of entertainment is the first form of entertainment for much of the global population, and that grows every year as our industry continues to grow, and we represent incredible value.”

asked by Christopher Schoell · answered by Andrew Wilson

What is specifically driving the impressive operating leverage guided for FY26?

Stuart Canfield attributed the leverage to the power of scaled IP like Battlefield and Skate, which have high margins and PC penetration. He also emphasized continued discipline in investment structure and capital reallocation. The company has been carrying Battlefield's costs for four years, and now these investments are paying off in top-line growth and leverage.

“I think it's what we alluded to before when we were trying to indicate through the Investor Day, it's really the power of incredible IP at scale through a massive online community construct like Battlefield, also bringing Skate and the ability for us that we've been carrying the cost of Battlefield under multiple studios over a 4-year period already within the P&L.”

asked by James Heaney · answered by Stuart Canfield

How should investors think about the monetization trajectory with the World Cup, and what impact might the North America World Cup have on the game?

Andrew Wilson stated that World Cups are great for EA's business, acting as acquisition and engagement tools, ultimately driving growth. He noted that the last North American World Cup grew the player base by 50%, indicating a significant opportunity as the sport grows globally and locally. EA will leverage all opportunities across platforms, including mobile, to celebrate global football.

“One thing is almost certainly true and consistent through every one, which is that when the world is thinking about football, that's great for our business.”

asked by Eric Handler · answered by Andrew Wilson