Electronic Arts Reports Q3 FY26 Results

REDWOOD CITY, Calif.--( BUSINESS WIRE)--Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its third fiscal quarter ended December 31, 2025.

Selected Operating Highlights and Metrics

Selected Financial Highlights and Metrics

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

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

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

Restructuring

—

Total operating expenses

1,276

1,050

3,593

3,268

Operating income

127

377

598

1,125

Interest and other income (expense), net

Income before provision for income taxes

131

405

601

1,198

Provision for income taxes

112

175

331

Net income

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, 2025 1

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

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

Additional paid-in capital

—

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

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

293

426

867

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization, accretion and impairment

240

277

Stock-based compensation

178

163

504

480

Change in assets and liabilities

Receivables, net

247

268

(151

)

(179

)

Other assets

(21

)

(89

)

Accounts payable, accrued, and other liabilities

284

161

Deferred income taxes, net

(39

)

(30

)

(89

)

Deferred net revenue (online-enabled games)

1,164

331

789

)

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

127

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

—

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

(31

)

(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)

YOY %

FY25

FY26

Change

Net revenue

1,883

1,895

1,671

1,839

1,901

GAAP-based financial data

Change in deferred net revenue (online-enabled games) 2

332

(96

)

(373

)

(21

)

1,145

Gross profit

1,427

1,527

1,392

1,396

1,403

Gross profit (as a % of net revenue)

GAAP-based financial data

Acquisition-related expenses

Change in deferred net revenue (online-enabled games) 2

332

(96

)

(373

)

(21

)

1,145

Stock-based compensation

Operating income

377

395

271

200

127

(66

Operating income (as a % of net revenue)

GAAP-based financial data

Acquisition-related expenses*

Change in deferred net revenue (online-enabled games) 2

332

(96

)

(373

)

(21

)

1,145

Restructuring and related charges

—

Stock-based compensation

163

162

152

174

178

Net income

293

254

201

137

(70

Net income (as a % of net revenue)

GAAP-based financial data

Acquisition-related expenses*

Change in deferred net revenue (online-enabled games) 2

332

(96

)

(373

)

(21

)

1,145

Restructuring and related charges

—

Stock-based compensation

163

162

152

174

178

Tax rate used for management reporting

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

Diluted

265

259

254

252

253

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)

YOY %

FY25

FY26

Change

QUARTERLY NET REVENUE PRESENTATIONS

Net revenue by composition

Full game downloads

446

367

233

401

546

Packaged goods

153

217

(44

Full game

599

437

289

618

632

Live services and other

1,284

1,458

1,382

1,221

1,269

Total net revenue

1,883

1,895

1,671

1,839

1,901

Full game

Live services and other

Total net revenue %

100

GAAP-based financial data

Full game downloads

(27

)

(46

)

451

Packaged goods

(26

)

(29

)

Full game

(53

)

(75

)

510

Live services and other

298

(43

)

(298

)

(103

)

635

Total change in deferred net revenue (online-enabled games) by composition 2

332

(96

)

(373

)

(21

)

1,145

Net revenue by platform

Console

1,215

1,182

1,007

1,212

1,182

PC & Other

392

426

374

352

465

Mobile

276

287

290

275

254

Total net revenue

1,883

1,895

1,671

1,839

1,901

GAAP-based financial data

Console

275

(86

)

(317

)

747

PC & Other

(11

)

(54

)

343

Mobile

)

(16

)

Total change in deferred net revenue (online-enabled games) by platform 2

332

(96

)

(373

)

(21

)

1,145

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions)

YOY %

FY25

FY26

Change

CASH FLOW DATA

Investing cash flow

(62

)

214

(89

)

(68

)

(57

)

Investing cash flow - TTM

(226

)

—

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

130

1,826

Operating cash flow - TTM

2,110

2,079

1,976

1,872

2,522

Capital expenditures

Capital expenditures - TTM

218

221

226

219

223

Free cash flow 3

1,126

495

(55

)

1,772

Free cash flow 3 - TTM

1,892

1,858

1,750

1,653

2,299

Common stock repurchases and excise taxes paid

383

1,375

375

394

—

(100

Cash dividends paid

DEPRECIATION

Depreciation expense

BALANCE SHEET DATA

Cash and cash equivalents

2,776

2,136

1,518

1,148

2,784

Short-term investments

379

112

115

Cash and cash equivalents, and short-term investments

3,155

2,248

1,630

1,260

2,899

Receivables, net

742

679

533

1,077

829

STOCK-BASED COMPENSATION

Cost of revenue

Research and development

119

115

110

123

127

Marketing and sales

General and administrative

Total stock-based compensation

163

162

152

174

178

RESTRUCTURING AND RELATED CHARGES

Restructuring

—

Office space reductions

)

—

Total restructuring and related charges

—

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

GAAP operating income

127

377

(66%)

Acquisition-related expenses*

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.