EA
Electronic Arts Inc
Q1 2026 Report
Electronic Arts Inc (EA) Q1 2026 Financial Results: Strong Start Amid Exciting Releases...
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Executive Summary
Electronic Arts Inc. reported a solid performance for Q1 FY2025, demonstrating the company's resilience amidst competitive pressures in the gaming market. The company exceeded revenue expectations with net bookings of $1.26 billion, driven by successful product launches, including EA SPORTS College Football 25. Despite a year-over-year decline in revenue attributed to timing shifts of game releases, the management remains optimistic about upcoming quarters, especially with significant launches planned for NFL and soccer franchises. Increased visibility into future profitability was reinforced through management's commitment to ongoing investment in core franchises and innovative gameplay experiences that resonate with a growing user base.
Key Performance Indicators
Revenue
1.65B
QoQ: -7.08% | YoY:-14.09%
Gross Profit
1.37B
83.06% margin
QoQ: -0.44% | YoY:-11.76%
Operating Income
369.00M
QoQ: 14.60% | YoY:-31.92%
Net Income
280.00M
QoQ: 53.85% | YoY:-30.35%
EPS
1.05
QoQ: 54.41% | YoY:-29.05%
Revenue Trend
Margin Analysis
Key Insights
- **Revenue**: $1.653 billion, down 14% year-over-year, primarily impacted by slate timing as the prior year had significant releases including the World Cup aligned titles.
- **Net Income**: $280 million, a decrease of 30.35% year-over-year but a notable increase of 53.85% quarter-over-quarter.
- **EPS**: $1.04, down 29.05% year-over-year, driven by reduced total revenue and increased operating expenses.
- **Gross Profit Margin**: Maintained at approximately 83%, reflecting stable cost management amidst declining total revenues.
- **Cash Flow**: Operating cash flow increased to $120 million, with free cash flow standing at $53 million. Cash reserves at period end totaled $2.4 billion.