EA has slashed its holiday and full-year earnings targets because two of its major games have underperformed, and the company's stock has dropped by nearly 17% over the last two days of trading.

Yesterday EA announced disappointing news for investors: The company wasn't going to hit its intended earnings targets for Q3, or for the full fiscal year. The company doesn't just expect to miss the targets by a small margin--the miscalculation is in the tune of hundreds of millions of dollars.
The culprits are Dragon Age The Veilguard, a singleplayer-only RPG that missed expectations by roughly 50%, and EA FC25, the heavily-monetized replacement for the FIFA franchise. As a result, EA now expects to make around $2.215 billion in net bookings for the Q3 period, a reduction of 7.7% or $185 million, from the original low-end target of $2.4 billion. The original targets can be found in EA's Q2 release.
On the high end EA expected to make $2.55 billion in net bookings during Q3, so the new revision is 13.1% lower than the top-end forecast.
Full-year earning forecasts are likewise substantially down. EA had originally expected to make $7.5 to $7.8 billion in net bookings throughout FY25, but the new Q3 revision calls for $7 billion to $7.15 billion.
That's a reduction of $500 - $800 million on the low end, and $500 - $650 million on the high end.

The market responded predictably and EA shares dropped by nearly 17% over the course of the last few days.
EA CEO Andrew Wilson had this to say in the announcement:
"During Q3, we continued to deliver high-quality games and experiences across our portfolio; however, Dragon Age and EA SPORTS FC 25 underperformed our net bookings expectations.
"This month, our teams delivered a comprehensive gameplay refresh in addition to our annual Team of the Year update in FC 25; positive player feedback and early results are encouraging. We remain confident in our long-term strategy and expect a return to growth in FY26, as we execute against our pipeline."