Electronic Arts Reports Q4 and FY26 Results

Electronic Arts Reports Q4 and FY26 Results May 5, 2026 EA Delivers Record Fiscal Year in Net Bookings and Operating Cash Flow, Underpinned by a Successful Battlefield 6 Launch and Live Services Portfolio Growth Electronic Arts (NASDAQ: EA) today announced preliminary financial results for its fourth quarter and fiscal year ended March 31, 2026. “Driven by our talented teams and disciplined execution, we delivered a record FY26, highlighted by the incredibly successful launch of our iconic Battlefield franchise,” said Andrew Wilson, CEO of Electronic Arts. “With the recent completion of a debt process that was met with strong investor demand and our ongoing constructive engagement with regulators, we look ahead to closing the transaction and the opportunities it will unlock.” Selected Operating Highlights and Metrics Net bookings 1 were a record $8.026 billion in FY26, up 9% year-over-year.Battlefield 6 was the best performing Battlefield in a fiscal year setting numerous franchise fiscal year records.Global Football net bookings was up mid-single-digits for FY26 with growth across EA SPORTS FC 26, FC Online, and FC Mobile.Apex Legends delivered its strongest net bookings quarter of the fiscal year in Q4 reflecting continued momentum as engagement and monetization continue to improve. For FY26, Apex Legends net bookings finished up double digits year-over-year. Selected Financial Highlights and Metrics Net revenue for FY26 was $7.531 billion, up 1% year over year.Net cash provided by operating activities was $580 million for the quarter and $2.553 billion for the fiscal year, up 6% and 23% year over year, respectively. Dividend EA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock. The dividend is payable on June 17, 2026 to stockholders of record as of the close of business on May 27, 2026. Quarterly Financial Highlights Three Months Ended March 31, 2026 2025 (in $ millions, except per share amounts) Full game 609 437 Live services and other 1,511 1,458 Total net revenue 2,120 1,895 Net income 461 254 Diluted earnings per share 1.81 0.98 Operating cash flow 580 549 Value of shares repurchased – 1,375 Number of shares repurchased – 9.8 Cash dividend paid 48 48 Fiscal Year Financial Highlights Twelve Months Ended March 31, 2026 2025 (in $ millions, except per share amounts) Full game 2,148 2,002 Live services and other 5,383 5,461 Total net revenue 7,531 7,463 Net income 887 1,121 Diluted earnings per share 3.51 4.25 Operating cash flow 2,553 2,079 Value of shares repurchased 750 2,500 Number of shares repurchased 5.3 17.6 Cash dividend paid 191 199 Operating Metric The following is a calculation of our total net bookings for the periods presented: Three Months Ended March 31, Twelve Months Ended March 31, 2026 2025 2026 2025 (in $ millions) Total net revenue 2,120 1,895 7,531 7,463 Change in deferred net revenue (online-enabled games) (256 ) (96 ) 495 (108 ) Total net bookings 1,864 1,799 8,026 7,355 Pending Acquisition by Investor Consortium On September 29, 2025, EA announced that it has entered into a definitive agreement to be acquired by an investor consortium (“the Consortium”) comprised of The Public Investment Fund, private investment funds affiliated with Silver Lake Group, L.L.C. and private investment funds affiliated with Affinity Partners in an all-cash transaction that values EA at an enterprise value of approximately $55 billion. There are a limited number of regulatory reviews outstanding, and the parties are working diligently to complete these remaining reviews. For additional information, please refer to EA’s filings with the Securities and Exchange Commission. Conference Call and Supporting Documents Given the pending transaction, Electronic Arts will not be hosting an earnings conference call this quarter. For further information and discussion of EA’s financial results, please refer to the financial model of EA’s historical results posted on EA’s IR Website at http://ir.ea.com and EA’s upcoming Annual Report on Form 10-K for the fiscal year ended March 31, 2026. Forward-Looking Statements Some statements set forth in this release contain forward-looking statements that are subject to change. Statements including words such as “anticipate,” “believe,” “expect,” “intend,” “estimate,” “plan,” “predict,” “seek,” “goal,” “will,” “may,” “likely,” “should,” “could” (and the negative of any of these terms), “future” and similar expressions also identify forward-looking statements. These forward-looking statements are not guarantees of future performance and reflect management’s current expectations. Our actual results could differ materially from those discussed in the forward-looking statements. Some of the factors which could cause the Company’s results to differ materially from its expectations include the following: sales of the Company’s products and services; the Company’s ability to develop and support digital products and services, including managing online security and privacy; outages of our products, services and technological infrastructure; the Company’s ability to manage expenses; the competition in the interactive entertainment industry; governmental regulations; the effectiveness of the Company’s sales and marketing programs; timely development and release of the Company’s products and services; the Company’s ability to realize the anticipated benefits of, and integrate, acquisitions; the consumer demand for, and the availability of an adequate supply of console hardware units; the Company’s ability to predict consumer preferences and trends; the Company’s ability to develop and implement new technology; foreign currency exchange rate fluctuations; economic and geopolitical conditions; changes in our tax rates or tax laws; the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the proposed transaction with the Consortium that could delay the consummation of the proposed transaction or cause the parties to abandon the proposed transaction; the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement entered into in connection with the proposed transaction; the risk that the parties to the proposed transaction may not be able to satisfy the conditions to the proposed transaction in a timely manner or at all; risks related to disruption of the Company’s business resulting from the proposed transaction, including disruption of management time from ongoing business operations due to the proposed transaction; risks relating to certain restrictions during the pendency of the proposed transaction that may impact the ability of the Company to pursue certain business opportunities or strategic transactions; the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the Company’s common stock, including if the proposed transaction is not consummated; the risk of any unexpected costs or expenses resulting from the proposed transaction; the risk of any litigation relating to the proposed transaction; the risk that the proposed transaction and its announcement could have an adverse effect on the ability of the Company to retain and hire key personnel and to maintain relationships with customers, vendors, partners, employees, stockholders and other business relationships and on its operating results and business generally; the risks and uncertainties that are described in the proxy statement that the Company has filed with the Securities Exchange Commission in connection with the proposed transaction; and other factors described in Part II, Item 1A of Electronic Arts’ latest Quarterly Report on Form 10-Q under the heading “Risk Factors”, as well as in other documents we have filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2025. These forward-looking statements are current as of May 5, 2026. Electronic Arts assumes no obligation to revise or update any forward-looking statement, except as required by law. In addition, the preliminary financial results set forth in this release are estimates based on information currently available to Electronic Arts. While Electronic Arts believes these estimates are meaningful, they could differ from the actual amounts that Electronic Arts ultimately reports in its Annual Report on Form 10-K for the fiscal year ended March 31, 2026. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-K for the fiscal year ended March 31, 2026. About Electronic Arts Electronic Arts (NASDAQ: EA) is a global leader in digital interactive entertainment. The Company develops and delivers games, content and online services for Internet-connected consoles, mobile devices and personal computers. In fiscal year 2026, EA posted GAAP net revenue of approximately $7.5 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS FC™, Battlefield™, Apex Legends™, The Sims™, EA SPORTS™ Madden NFL, EA SPORTS™ College Football, Need for Speed™, Dragon Age™, Titanfall™, Plants vs. Zombies™ and EA SPORTS F1 ®. More information about EA is available at www.ea.com/news. EA, EA SPORTS, EA SPORTS FC, Battlefield, Need for Speed, Apex Legends, The Sims, Dragon Age, Titanfall, and Plants vs. Zombies are trademarks of Electronic Arts Inc. John Madden, NFL, and F1 are the property of their respective owners and used with permission. 1 Net bookings is defined as the net amount of products and services sold digitally or sold-in physically in the period. Net bookings is calculated by adding total net revenue to the change in deferred net revenue for online-enabled games. ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Statements of Operations (in $ millions, except per share data) Three Months Ended Twelve Months Ended March 31, March 31, 2026 2025 2026 2025 Net revenue 2,120 1,895 7,531 7,463 Cost of revenue 364 368 1,584 1,543 Gross profit 1,756 1,527 5,947 5,920 Operating expenses: Research and development 732 686 2,828 2,569 Marketing and sales 254 234 1,128 962 General and administrative 191 192 763 745 Amortization of intangibles 15 17 66 67 Restructuring — 3 — 57 Total operating expenses 1,192 1,132 4,785 4,400 Operating income 564 395 1,162 1,520 Interest and other income (expense), net 15 12 18 85 Income before provision for income taxes 579 407 1,180 1,605 Provision for income taxes 118 153 293 484 Net income 461 254 887 1,121 Earnings per share Basic 1.84 0.99 3.55 4.28 Diluted 1.81 0.98 3.51 4.25 Number of shares used in computation Basic 250 257 250 262 Diluted 254 259 253 264 ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Balance Sheets (in $ millions) March 31, 2026 March 31, 20251 ASSETS Current assets: Cash and cash equivalents 2,864 2,136 Short-term investments 116 112 Receivables, net 632 679 Other current assets 361 349 Total current assets 3,973 3,276 Property and equipment, net 613 586 Goodwill 5,388 5,376 Acquisition-related intangibles, net 195 293 Deferred income taxes, net 2,433 2,420 Other assets 529 417 TOTAL ASSETS 13,131 12,368 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable, accrued, and other current liabilities 1,564 1,359 Deferred net revenue (online-enabled games) 2,233 1,700 Senior notes, current, net — 400 Total current liabilities 3,797 3,459 Senior notes, net 1,485 1,484 Income tax obligations 604 594 Other liabilities 481 445 Total liabilities 6,367 5,982 Stockholders’ equity: Common stock 3 3 Additional paid-in capital 256 — Retained earnings 6,607 6,470 Accumulated other comprehensive loss (102 ) (87 ) Total stockholders’ equity 6,764 6,386 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 13,131 12,368 1Derived from audited consolidated financial statements. ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Statements of Cash Flows (in $ millions) Three Months Ended March 31, Twelve Months Ended March 31, 2026 2025 2026 2025 OPERATING ACTIVITIES Net income 461 254 887 1,121 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization, accretion and impairment 83 79 323 356 Stock-based compensation 152 162 656 642 Change in assets and liabilities Receivables, net 197 64 46 (115 ) Other assets 4 19 (85 ) 40 Accounts payable, accrued, and other liabilities (78 ) 29 206 190 Deferred income taxes, net 17 48 (13 ) (41 ) Deferred net revenue (online-enabled games) (256 ) (106 ) 533 (114 ) Net cash provided by operating activities 580 549 2,553 2,079 INVESTING ACTIVITIES Capital expenditures (61 ) (54 ) (230 ) (221 ) Proceeds from maturities and sales of short-term investments 42 329 129 695 Purchase of short-term and other investments (43 ) (61 ) (158 ) (437 ) Acquisitions, net of cash acquired — — (17 ) — Net cash provided by (used in) investing activities (62 ) 214 (276 ) 37 FINANCING ACTIVITIES Proceeds from issuance of common stock 38 35 83 78 Payment of senior notes (400 ) — (400 ) — Cash dividends paid (48 ) (48 ) (191 ) (199 ) Cash paid to taxing authorities for shares withheld from employees (25 ) (23 ) (291 ) (234 ) Common stock repurchases and excise taxes paid — (1,375 ) (769 ) (2,508 ) Net cash used in financing activities (435 ) (1,411 ) (1,568 ) (2,863 ) Effect of foreign exchange on cash and cash equivalents (3 ) 8 19 (17 ) Change in cash and cash equivalents 80 (640 ) 728 (764 ) Beginning cash and cash equivalents 2,784 2,776 2,136 2,900 Ending cash and cash equivalents 2,864 2,136 2,864 2,136 ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Supplemental Financial Information and Business Metrics (in $ millions, except per share data) Q4 Q1 Q2 Q3 Q4 YOY % FY25 FY26 FY26 FY26 FY26 Change Net revenue Net revenue 1,895 1,671 1,839 1,901 2,120 12 % GAAP-based financial data Change in deferred net revenue (online-enabled games)2 (96 ) (373 ) (21 ) 1,145 (256 ) Gross profit Gross profit 1,527 1,392 1,396 1,403 1,756 15 % Gross profit (as a % of net revenue) 81 % 83 % 76 % 74 % 83 % GAAP-based financial data Acquisition-related expenses 10 10 9 9 9 Change in deferred net revenue (online-enabled games)2 (96 ) (373 ) (21 ) 1,145 (256 ) Stock-based compensation 3 3 3 3 2 Operating income Operating income 395 271 200 127 564 43 % Operating income (as a % of net revenue) 21 % 16 % 11 % 7 % 27 % GAAP-based financial data Acquisition-related expenses* 27 27 26 53 25 Change in deferred net revenue (online-enabled games)2 (96 ) (373 ) (21 ) 1,145 (256 ) Restructuring and related charges 4 — — — — Stock-based compensation 162 152 174 178 152 Net income Net income 254 201 137 88 461 81 % Net income (as a % of net revenue) 13 % 12 % 7 % 5 % 22 % GAAP-based financial data Acquisition-related expenses* 27 27 26 53 25 Change in deferred net revenue (online-enabled games)2 (96 ) (373 ) (21 ) 1,145 (256 ) Restructuring and related charges 4 — — — — Stock-based compensation 162 152 174 178 152 Tax rate used for management reporting 19 % 19 % 19 % 19 % 19 % Diluted earnings per share 0.98 0.79 0.54 0.35 1.81 85 % Number of shares used in computation Basic 257 251 250 250 250 Diluted 259 254 252 253 254 2The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of gains/losses on cash flow hedges. *Includes (i) amortization and impairment of intangibles, and (ii) fees and other direct expenses related to our proposed transaction with the Consortium announced on September 29, 2025. ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Supplemental Financial Information and Business Metrics (in $ millions) Q4 Q1 Q2 Q3 Q4 YOY % FY25 FY26 FY26 FY26 FY26 Change QUARTERLY NET REVENUE PRESENTATIONS Net revenue by composition Full game downloads 367 233 401 546 528 44 % Packaged goods 70 56 217 86 81 16 % Full game 437 289 618 632 609 39 % Live services and other 1,458 1,382 1,221 1,269 1,511 4 % Total net revenue 1,895 1,671 1,839 1,901 2,120 12 % Full game 23 % 17 % 34 % 33 % 29 % Live services and other 77 % 83 % 66 % 67 % 71 % Total net revenue % 100 % 100 % 100 % 100 % 100 % GAAP-based financial data Full game downloads (27 ) (46 ) 37 451 (220 ) Packaged goods (26 ) (29 ) 45 59 (49 ) Full game (53 ) (75 ) 82 510 (269 ) Live services and other (43 ) (298 ) (103 ) 635 13 Total change in deferred net revenue (online-enabled games) by composition2 (96 ) (373 ) (21 ) 1,145 (256 ) Net revenue by platform Console 1,182 1,007 1,212 1,182 1,293 9 % PC & Other 426 374 352 465 555 30 % Mobile 287 290 275 254 272 (5 %) Total net revenue 1,895 1,671 1,839 1,901 2,120 12 % GAAP-based financial data Console (86 ) (317 ) 1 747 (222 ) PC & Other (11 ) (54 ) (6 ) 343 (87 ) Mobile 1 (2 ) (16 ) 55 53 Total change in deferred net revenue (online-enabled games) by platform2 (96 ) (373 ) (21 ) 1,145 (256 ) 2The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of gains/losses on cash flow hedges. ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Supplemental Financial Information and Business Metrics (in $ millions) Q4 Q1 Q2 Q3 Q4 YOY % FY25 FY26 FY26 FY26 FY26 Change CASH FLOW DATA Investing cash flow 214 (89 ) (68 ) (57 ) (62 ) Investing cash flow - TTM 37 17 (5 ) — (276 ) (846 %) Financing cash flow (1,411 ) (568 ) (429 ) (136 ) (435 ) Financing cash flow - TTM (2,863 ) (2,885 ) (2,912 ) (2,544 ) (1,568 ) 45 % Operating cash flow 549 17 130 1,826 580 Operating cash flow - TTM 2,079 1,976 1,872 2,522 2,553 23 % Capital expenditures 54 72 43 54 61 Capital expenditures - TTM 221 226 219 223 230 4 % Free cash flow3 495 (55 ) 87 1,772 519 Free cash flow3 - TTM 1,858 1,750 1,653 2,299 2,323 25 % Common stock repurchases and excise taxes paid 1,375 375 394 — — (100 %) Cash dividends paid 48 48 48 47 48 — DEPRECIATION Depreciation expense 51 52 53 53 58 14 % BALANCE SHEET DATA Cash and cash equivalents 2,136 1,518 1,148 2,784 2,864 Short-term investments 112 112 112 115 116 Cash and cash equivalents, and short-term investments 2,248 1,630 1,260 2,899 2,980 33 % Receivables, net 679 533 1,077 829 632 (7 %) STOCK-BASED COMPENSATION Cost of revenue 3 3 3 3 2 Research and development 115 110 123 127 107 Marketing and sales 14 12 15 16 14 General and administrative 30 27 33 32 29 Total stock-based compensation 162 152 174 178 152 RESTRUCTURING AND RELATED CHARGES Restructuring 3 — — — — Office space reductions 1 — — — — Total restructuring and related charges 4 — — — — 3Free cash flow is defined as Operating cash flow less Capital expenditures. ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures (in $ millions) The following table provides a reconciliation of non-GAAP operating income and margin to their most directly comparable GAAP financial measure for the twelve months ended March 31, 2026 plus a comparison to the actuals for the twelve months ended March 31, 2025. Twelve Months Ended March 31, 2026 2025 YOY % Change Net revenue 7,531 7,463 1% GAAP operating income 1,162 1,520 (24)% Acquisition-related expenses* 131 107 Restructuring and related charges — 62 Stock-based compensation 656 642 Non-GAAP operating income 1,949 2,331 (16%) GAAP operating margin 15.4% 20.4% Non-GAAP operating margin 25.9% 31.2% Impact from change in deferred net revenue (online-enabled games) 460 bps (100 bps) *Includes (i) amortization and impairment of intangibles, and (ii) fees and other direct expenses related to our proposed transaction with the Consortium announced on September 29, 2025. ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures (in $ millions) The following table provides a reconciliation of non-GAAP operating income and margin to their most directly comparable GAAP financial measure for the three months ended March 31, 2026 plus a comparison to the actuals for the three months ended March 31, 2025. Three Months Ended March 31 2026 2025 YOY % Change Net revenue 2,120 1,895 12% GAAP operating income 564 395 43% Acquisition-related expenses* 25 27 Restructuring and related charges — 4 Stock-based compensation 152 162 Non-GAAP operating income 741 588 26% GAAP operating margin 26.6% 20.8% Non-GAAP operating margin 35.0% 31.0% Impact from change in deferred net revenue (online-enabled games) (900 bps) (370 bps) *Includes (i) amortization and impairment of intangibles, and (ii) fees and other direct expenses related to our proposed transaction with the Consortium announced on September 29, 2025. Non-GAAP Financial Measures As a supplement to the Company’s financial measures presented in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company presents certain non-GAAP measures of financial performance, including non-GAAP operating margin and free cash flow. These non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, these non-GAAP measures have limitations in that they do not reflect all of the items associated with the Company’s results of operations as determined in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting and differ from GAAP measures with the same names and may differ from non-GAAP financial measures with the same or similar names that are used by other companies. The non-GAAP financial measures exclude acquisition-related expenses, stock-based compensation, restructuring and related charges, and capital expenditures, as applicable in any given reporting period and our outlook. The Company may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures. Management believes that these non-GAAP financial measures provide investors with additional useful information to better understand and evaluate the Company’s operating results and future prospects because they exclude certain items that may not be indicative of the Company’s core business, operating results, or future outlook. These non-GAAP financial measures, with further adjustments are used by management to understand ongoing financial and business performance. The Company uses a tax rate of 19% internally to evaluate its operating performance and to forecast, plan, and analyze future periods. Accordingly, the Company applies the same tax rate to its management reporting financial results. Investors are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measure. Source: Electronic Arts