Electronic Arts Inc’s Q1 2025 results reflect a notable year-over-year decline in revenue, totaling $1.653 billion, a decrease of 14.09% compared to the previous year and 7.08% compared to the previous quarter. Despite these challenges, the company demonstrated resilience in profitability with a net income of $280 million, representing an impressive 53.85% increase quarter-over-quarter. This performance underscores EA's ability to manage costs effectively amidst lower sales, as reflected in an operating income of $369 million and a corresponding improvement in operating margins to 22.32%.
Management attributed the revenue decline to continued sluggishness in hardware sales and intensified competition in the gaming sector. However, EA's strategic focus on live services and ongoing title support has mitigated some losses, and they remain optimistic about upcoming game launches and new revenue streams. Overall, while the current financial metrics indicate volatility, the underlying operational efficiencies and strategic planning may position EA favorably for a recovery in coming quarters.