Summary
Electronic Arts Inc. (EA) reported its first quarter results for fiscal year 2026, ending June 30, 2025. Total net revenue saw a slight increase of 1% year-over-year to $1,671 million. However, operating income declined by 26% to $271 million, and net income decreased by 28% to $201 million ($0.79 diluted EPS), primarily due to a significant 12% increase in operating expenses, driven by higher research and development investments and marketing spend. The company's cash position saw a notable decrease, with cash and cash equivalents falling to $1,518 million from $2,136 million at the prior quarter's end. This was largely driven by increased financing outflows, including substantial share repurchases totaling $375 million and excise taxes paid, as well as a significant drop in net cash provided by operating activities to $17 million from $120 million in the prior year period. Despite the cash outflow, EA returned $423 million to stockholders through share repurchases and dividends.
Financial Highlights
49 data points| Revenue | $1.67B |
| Cost of Revenue | $279.00M |
| Gross Profit | $1.39B |
| Operating Expenses | $1.12B |
| Operating Income | $271.00M |
| Interest Expense | $14.00M |
| Net Income | $201.00M |
| EPS (Basic) | $0.80 |
| EPS (Diluted) | $0.79 |
| Shares Outstanding (Basic) | 251.00M |
| Shares Outstanding (Diluted) | 254.00M |
Key Highlights
- 1Net revenue increased 1% year-over-year to $1.67 billion, slightly above the prior year's $1.66 billion.
- 2Operating income decreased significantly by 26% year-over-year to $271 million, impacted by higher operating expenses.
- 3Net income for the quarter was $201 million, a decrease from $280 million in the same period last year, resulting in diluted EPS of $0.79 compared to $1.04.
- 4Cash and cash equivalents decreased by $618 million sequentially, ending at $1.52 billion.
- 5Net cash provided by operating activities saw a substantial decrease, down to $17 million from $120 million in the prior year period.
- 6The company repurchased 3.0 million shares for approximately $375 million and paid $48 million in dividends, returning a total of $423 million to stockholders.
- 7Research and Development expenses increased by 12% year-over-year, reflecting continued investment in studio operations and contracted services.