Electronic Arts Reports Q3 FY26 Results

Electronic Arts Reports Q3 FY26 Results February 3, 2026 Record Quarterly Net Bookings Driven by Battlefield™ 6’s Landmark Launch Continued Franchise Momentum Across EA SPORTS FC™ and Apex Legends™ Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its third fiscal quarter ended December 31, 2025. Selected Operating Highlights and Metrics Net bookings 1 for the quarter totaled $3.046 billion, up 38% year-over-year.Battlefield™ 6 was the best-selling shooter title of 2025, setting new franchise engagement records.EA SPORTS FC™ net bookings increased high single digits year-over-year in Q3, excluding the benefit of deluxe edition content timing, driven by strength in Ultimate Team™ and FC Mobile.Apex Legends™ momentum continued in Q3 with net bookings up double-digits year-over-year driven by innovative new features and events. Selected Financial Highlights and Metrics Net revenue was $1.901 billion for the quarter.Net cash provided by operating activities was $1.826 billion for the quarter and $2.522 billion for the trailing twelve months. Dividend EA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock, payable on March 18, 2026 to stockholders of record as of the close of business on February 25, 2026. Quarterly Financial Highlights Three Months Ended December 31, 2025 2024 (in $ millions, except per share amounts) Full game 632 599 Live services and other 1,269 1,284 Total net revenue 1,901 1,883 Net income 88 293 Diluted earnings per share 0.35 1.11 Operating cash flow 1,826 1,176 Value of shares repurchased - 375 Number of shares repurchased - 2.4 Cash dividend paid 47 50 Trailing Twelve Months Financial Highlights Twelve Months Ended December 31, 2025 2024 (in $ millions) Full game 1,976 1,898 Live services and other 5,330 5,449 Total net revenue 7,306 7,347 Net income 680 1,049 Operating cash flow 2,522 2,110 Value of shares repurchased 2,125 1,450 Number of shares repurchased 15.1 10.1 Operating Metric The following is a calculation of our total net bookings for the periods presented: Three Months Ended December 31, Twelve Months Ended December 31, 2025 2024 2025 2024 (in $ millions) Total net revenue 1,901 1,883 7,306 7,347 Change in deferred net revenue (online-enabled games) 1,145 332 655 (125) Total net bookings 3,046 2,215 7,961 7,222 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. The transaction is expected to close in the first quarter of fiscal 2027 and is subject to customary closing conditions, including receipt of required regulatory approvals. 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 Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2025. 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 February 3, 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 Form 10-Q for the fiscal quarter ended December 31, 2025. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-Q for the fiscal quarter ended December 31, 2025. 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 2025, 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 December 31, Nine Months Ended December 31, 2025 2024 2025 2024 Net revenue 1,901 1,883 5,411 5,568 Cost of revenue 498 456 1,220 1,175 Gross profit 1,403 1,427 4,191 4,393 Operating expenses: Research and development 704 606 2,096 1,883 Marketing and sales 356 251 874 728 General and administrative 199 176 572 553 Amortization of intangibles 17 16 51 50 Restructuring — 1 — 54 Total operating expenses 1,276 1,050 3,593 3,268 Operating income 127 377 598 1,125 Interest and other income (expense), net 4 28 3 73 Income before provision for income taxes 131 405 601 1,198 Provision for income taxes 43 112 175 331 Net income 88 293 426 867 Earnings per share Basic 0.35 1.12 1.70 3.28 Diluted 0.35 1.11 1.68 3.26 Number of shares used in computation Basic 250 262 250 264 Diluted 253 265 253 266 ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Balance Sheets (in $ millions) December 31, 2025 March 31, 20251 ASSETS Current assets: Cash and cash equivalents 2,784 2,136 Short-term investments 115 112 Receivables, net 829 679 Other current assets 380 349 Total current assets 4,108 3,276 Property and equipment, net 600 586 Goodwill 5,388 5,376 Acquisition-related intangibles, net 219 293 Deferred income taxes, net 2,451 2,420 Other assets 514 417 TOTAL ASSETS 13,280 12,368 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable, accrued, and other current liabilities 1,546 1,359 Deferred net revenue (online-enabled games) 2,490 1,700 Senior notes, current, net 400 400 Total current liabilities 4,436 3,459 Senior notes, net 1,485 1,484 Income tax obligations 719 594 Other liabilities 488 445 Total liabilities 7,128 5,982 Stockholders’ equity: Common stock 3 3 Additional paid-in capital 82 — Retained earnings 6,194 6,470 Accumulated other comprehensive loss (127) (87) Total stockholders’ equity 6,152 6,386 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 13,280 12,368 1 Derived from audited consolidated financial statements. ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Statements of Cash Flows (in $ millions) Three Months Ended December 31, Nine Months Ended December 31, 2025 2024 2025 2024 OPERATING ACTIVITIES Net income 88 293 426 867 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization, accretion and impairment 79 75 240 277 Stock-based compensation 178 163 504 480 Change in assets and liabilities Receivables, net 247 268 (151 ) (179 ) Other assets (21 ) 41 (89 ) 21 Accounts payable, accrued, and other liabilities 88 44 284 161 Deferred income taxes, net 3 (39 ) (30 ) (89 ) Deferred net revenue (online-enabled games) 1,164 331 789 (8 ) Net cash provided by operating activities 1,826 1,176 1,973 1,530 INVESTING ACTIVITIES Capital expenditures (54 ) (50 ) (169 ) (167 ) Proceeds from maturities and sales of short-term investments 15 127 87 366 Purchase of short-term and other investments (18 ) (139 ) (115 ) (376 ) Acquisitions, net of cash acquired — — (17 ) — Net cash used in investing activities (57 ) (62 ) (214 ) (177 ) FINANCING ACTIVITIES Proceeds from issuance of common stock — 1 45 43 Cash dividends paid (47 ) (50 ) (143 ) (151 ) Cash paid to taxing authorities for shares withheld from employees (89 ) (72 ) (266 ) (211 ) Common stock repurchases and excise taxes paid — (383 ) (769 ) (1,133 ) Net cash used in financing activities (136 ) (504 ) (1,133 ) (1,452 ) Effect of foreign exchange on cash and cash equivalents 3 (31 ) 22 (25 ) Change in cash and cash equivalents 1,636 579 648 (124 ) Beginning cash and cash equivalents 1,148 2,197 2,136 2,900 Ending cash and cash equivalents 2,784 2,776 2,784 2,776 ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Supplemental Financial Information and Business Metrics (in $ millions, except per share data) Q3 Q4 Q1 Q2 Q3 YOY % FY25 FY25 FY26 FY26 FY26 Change Net revenue Net revenue 1,883 1,895 1,671 1,839 1,901 1 % GAAP-based financial data Change in deferred net revenue (online-enabled games)2 332 (96 ) (373 ) (21 ) 1,145 Gross profit Gross profit 1,427 1,527 1,392 1,396 1,403 (2 %) Gross profit (as a % of net revenue) 76 % 81 % 83 % 76 % 74 % GAAP-based financial data Acquisition-related expenses 10 10 10 9 9 Change in deferred net revenue (online-enabled games)2 332 (96 ) (373 ) (21 ) 1,145 Stock-based compensation 3 3 3 3 3 Operating income Operating income 377 395 271 200 127 (66 %) Operating income (as a % of net revenue) 20 % 21 % 16 % 11 % 7 % GAAP-based financial data Acquisition-related expenses* 26 27 27 26 53 Change in deferred net revenue (online-enabled games)2 332 (96 ) (373 ) (21 ) 1,145 Restructuring and related charges — 4 — — — Stock-based compensation 163 162 152 174 178 Net income Net income 293 254 201 137 88 (70 %) Net income (as a % of net revenue) 16 % 13 % 12 % 7 % 5 % GAAP-based financial data Acquisition-related expenses* 26 27 27 26 53 Change in deferred net revenue (online-enabled games)2 332 (96 ) (373 ) (21 ) 1,145 Restructuring and related charges — 4 — — — Stock-based compensation 163 162 152 174 178 Tax rate used for management reporting 19 % 19 % 19 % 19 % 19 % Diluted earnings per share 1.11 0.98 0.79 0.54 0.35 (68 %) Number of shares used in computation Basic 262 257 251 250 250 Diluted 265 259 254 252 253 2 The 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) Q3 Q4 Q1 Q2 Q3 YOY % FY25 FY25 FY26 FY26 FY26 Change QUARTERLY NET REVENUE PRESENTATIONS Net revenue by composition Full game downloads 446 367 233 401 546 22 % Packaged goods 153 70 56 217 86 (44 %) Full game 599 437 289 618 632 6 % Live services and other 1,284 1,458 1,382 1,221 1,269 (1 %) Total net revenue 1,883 1,895 1,671 1,839 1,901 1 % Full game 32 % 23 % 17 % 34 % 33 % Live services and other 68 % 77 % 83 % 66 % 67 % Total net revenue % 100 % 100 % 100 % 100 % 100 % GAAP-based financial data Full game downloads 25 (27 ) (46 ) 37 451 Packaged goods 9 (26 ) (29 ) 45 59 Full game 34 (53 ) (75 ) 82 510 Live services and other 298 (43 ) (298 ) (103 ) 635 Total change in deferred net revenue (online-enabled games) by composition2 332 (96 ) (373 ) (21 ) 1,145 Net revenue by platform Console 1,215 1,182 1,007 1,212 1,182 (3 %) PC & Other 392 426 374 352 465 19 % Mobile 276 287 290 275 254 (8 %) Total net revenue 1,883 1,895 1,671 1,839 1,901 1 % GAAP-based financial data Console 275 (86 ) (317 ) 1 747 PC & Other 33 (11 ) (54 ) (6 ) 343 Mobile 24 1 (2 ) (16 ) 55 Total change in deferred net revenue (online-enabled games) by platform2 332 (96 ) (373 ) (21 ) 1,145 2 The 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) Q3 Q4 Q1 Q2 Q3 YOY % FY25 FY25 FY26 FY26 FY26 Change CASH FLOW DATA Investing cash flow (62 ) 214 (89 ) (68 ) (57 ) Investing cash flow - TTM (226 ) 37 17 (5 ) — 100 % Financing cash flow (504 ) (1,411 ) (568 ) (429 ) (136 ) Financing cash flow - TTM (1,812 ) (2,863 ) (2,885 ) (2,912 ) (2,544 ) (40 %) Operating cash flow 1,176 549 17 130 1,826 Operating cash flow - TTM 2,110 2,079 1,976 1,872 2,522 20 % Capital expenditures 50 54 72 43 54 Capital expenditures - TTM 218 221 226 219 223 2 % Free cash flow3 1,126 495 (55 ) 87 1,772 Free cash flow3 - TTM 1,892 1,858 1,750 1,653 2,299 22 % Common stock repurchases and excise taxes paid 383 1,375 375 394 — (100 %) Cash dividends paid 50 48 48 48 47 (6 %) DEPRECIATION Depreciation expense 51 51 52 53 53 4 % BALANCE SHEET DATA Cash and cash equivalents 2,776 2,136 1,518 1,148 2,784 Short-term investments 379 112 112 112 115 Cash and cash equivalents, and short-term investments 3,155 2,248 1,630 1,260 2,899 (8 %) Receivables, net 742 679 533 1,077 829 12 % STOCK-BASED COMPENSATION Cost of revenue 3 3 3 3 3 Research and development 119 115 110 123 127 Marketing and sales 14 14 12 15 16 General and administrative 27 30 27 33 32 Total stock-based compensation 163 162 152 174 178 RESTRUCTURING AND RELATED CHARGES Restructuring 1 3 — — — Office space reductions (1 ) 1 — — — Total restructuring and related charges — 4 — — — 3 Free 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 three months ended December 31, 2025 plus a comparison to the actuals for the three months ended December 31, 2024. Three Months Ended December 31 2025 2024 YOY % Change Net revenue 1,901 1,883 1% GAAP operating income 127 377 (66%) Acquisition-related expenses* 53 26 Stock-based compensation 178 163 Non-GAAP operating income 358 566 (37%) GAAP operating margin 6.7% 20.0% Non-GAAP operating margin 18.8% 30.1% Impact from change in deferred net revenue (online-enabled games) 3,050 bps 1,040 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 Inc.