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 (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
1.88B
QoQ: -7.01% | YoY:-3.19%
Gross Profit
1.43B
75.78% margin
QoQ: -9.05% | YoY:0.78%
Operating Income
377.00M
QoQ: -1.82% | YoY:3.29%
Net Income
293.00M
QoQ: -0.34% | YoY:1.03%
EPS
1.12
QoQ: 0.90% | YoY:3.70%
Revenue Trend
Margin Analysis
Key Insights
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 highlighte...