Electronic Arts Inc (EA) Q3 2025: Ea

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Electronic Arts Inc

$203.92 0.24%

Exchange: NASDAQ | Sector: Technology | Industry: Electronic Gaming Multimedia

Q3 2025

Published: Feb 5, 2025

Earnings Highlights

Revenue of $1.88B down 3.2% year-over-year
EPS of $1.11 increased by 3.7% from previous year
Gross margin of 75.8%
Net income of 293.00M
"Our relentless focus on execution and delivery ensures we continue to bring incredible sports experiences and blockbuster entertainment to hundreds of millions of players and fans around the world. - Andrew Wilson" - Andrew Wilson

Electronic Arts Inc

Period Q3 2025

Currency USD

Report Type Quarterly Earnings

Generated Dec 8, 2025

Executive Summary

Electronic Arts Inc (EA) reported Q3 2025 revenues of $1.883 billion, a decline of 3.2% year-over-year. The company's operating income was $377 million with a net income of $293 million. While EA faced challenges with its flagship title, EA Sports FC, underperforming against expectations due to engagement issues, management remains optimistic about its long-term strategic objectives. Significant progress was made in January with a major gameplay update that revitalized player engagement just before key events, indicating a path to recovery in future quarters. The company is also focused on innovation within its portfolio and intends to leverage its strong cash flow position for growth initiatives and shareholder returns.

Key Performance Indicators

Revenue

Decreasing

1.88B

QoQ: -7.01% | YoY: -3.19%

Gross Profit

Increasing

1.43B

75.78% margin

QoQ: -9.05% | YoY: 0.78%

Operating Income

Increasing

377.00M

QoQ: -1.82% | YoY: 3.29%

Net Income

Increasing

293.00M

QoQ: -0.34% | YoY: 1.03%

EPS

Increasing

1.12

QoQ: 0.90% | YoY: 3.70%

Revenue Trend

Margin Analysis

Financial Highlights

Revenue for Q3 2025 stood at $1.883 billion, a decrease of 3.2% compared to Q3 2024. Cost of revenue decreased modestly to $456 million, resulting in a gross profit margin of 75.8%. Operating income rose to $377 million, maintaining a margin of 20.0%. The net income for the quarter was $293 million, which is a net margin of 15.6%. EA reported earnings per share of $1.11, reflecting a 3.7% increase year-over-year. While net bookings dropped to $2.2 billion, down 6% annually, management highlighted that their live services, which constitute 74% of their business, are still expected to drive future growth. Cash at the end of the period was $2.776 billion, providing ample liquidity for investments and covering long-term debt of $1.883 billion.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	1.88B	-3.19%	-7.01%
Gross Profit	1.43B	0.78%	-9.05%
Operating Income	377.00M	3.29%	-1.82%
Net Income	293.00M	1.03%	-0.34%
EPS	1.12	3.70%	0.90%

Key Financial Ratios

Gross Profit Margin

Excellent

75.80%

Gross profit margin is exceptional, indicating strong pricing power and operational efficiency

Operating Profit Margin

Good

20.00%

Operating margin is healthy and competitive within industry standards

Net Profit Margin

Good

15.60%

Net profit margin is healthy and competitive within industry standards

Return on Assets

Weak

2.18%

Return on assets suggests inefficient capital allocation

Return on Equity

Weak

3.95%

Return on equity suggests inefficient capital allocation

Current Ratio

Adequate

1.38

Current ratio meets minimum requirements but limited cushion

Debt to Equity

Conservative

0.26

Debt-to-equity shows conservative leverage and low financial risk

P/E Ratio

Growth

32.71x

Elevated P/E suggests growth expectations or premium valuation

Price to Book

Premium

5.17x

Trading at premium to book value, reflects strong intangibles or growth

Historical Earnings Comparison

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q1 2026	1,671.00	254.00	+1.1%	View
Q4 2025	1,895.00	0.96	+6.5%	View
Q3 2025	1,883.00	1.11	-3.2%	View
Q2 2025	2,025.00	1.11	+5.8%	View
Q1 2025	1,653.00	1.04	-14.1%	View

Electronic Arts Inc (EA) Q3 2025 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue Trend

Margin Analysis

Financial Highlights

Income Statement

Key Financial Ratios

Management Insights Available for Members

Peer Comparison Available for Members

Investment Outlook & SWOT Available for Members

Historical Earnings Comparison

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