10-QPeriod: Q3 FY2026

ELECTRONIC ARTS INC. Quarterly Report for Q3 Ended Dec 31, 2025

Filed February 3, 2026For Securities:EA

Summary

Electronic Arts Inc. (EA) reported its quarterly results for the period ending December 31, 2025. Net revenue for the quarter was $1.901 billion, a slight increase of 1% year-over-year, primarily driven by strong performance in franchises like EA SPORTS FC, Battlefield, and EA SPORTS Madden NFL. However, operating income saw a significant decline of 66% year-over-year to $127 million, mainly due to a 22% increase in operating expenses, largely attributed to increased R&D and marketing spending, as well as merger-related fees. For the nine months ended December 31, 2025, net revenue was $5.411 billion, a decrease of 3% compared to the prior year, impacted by lower live services revenue and a decline in packaged goods sales. Despite the revenue dip, net cash provided by operating activities increased significantly by 30% to $1.973 billion, reflecting improved working capital management and lower tax payments. The company ended the period with a robust cash and cash equivalents balance of $2.784 billion. A significant development impacting the company is the proposed acquisition by an investor consortium for $210 per share in cash, which is expected to close in the first quarter of fiscal year 2027, subject to regulatory approvals. This impending transaction has led EA to suspend its share repurchase program.

Financial Highlights

50 data points
Beta

Revenue

$1.90B

73.8% Gross Margin

Net Income

$88.00M

4.6% Net Margin

EPS (Diluted)

$0.35

Total Assets

$13.28B

Cash & Equivalents

$2.78B

Free Cash Flow

$1.83B

Financial Statements
Beta
Revenue$1.90B
Cost of Revenue$498.00M
Gross Profit$1.40B
Operating Expenses$1.28B
Operating Income$127.00M
Interest Expense$14.00M
Net Income$88.00M
EPS (Basic)$0.35
EPS (Diluted)$0.35
Shares Outstanding (Basic)250.00M
Shares Outstanding (Diluted)253.00M

Key Highlights

  • 1Net revenue for the quarter increased by 1% year-over-year to $1.901 billion, driven by key franchises.
  • 2Operating income declined significantly by 66% year-over-year to $127 million due to increased operating expenses.
  • 3For the nine-month period, net revenue decreased by 3% to $5.411 billion, with live services revenue showing a slight decline.
  • 4Net cash provided by operating activities saw a substantial increase of 30% to $1.973 billion for the nine-month period.
  • 5The company reported a strong cash position with $2.784 billion in cash and cash equivalents as of December 31, 2025.
  • 6A definitive agreement has been signed for EA to be acquired by an investor consortium for $210 per share, with an expected closing in Q1 fiscal year 2027.
  • 7EA has suspended its stock repurchase program in contemplation of the proposed merger.

Frequently Asked Questions

For the quarter ending December 31, 2025, Electronic Arts reported net revenue of $1.901 billion, a 1% increase year-over-year. However, operating income decreased significantly by 66% to $127 million due to a 22% rise in operating expenses, including higher R&D, marketing, and merger-related costs.

The company demonstrated strong cash flow generation. For the nine months ended December 31, 2025, net cash provided by operating activities increased by 30% to $1.973 billion compared to the prior year. This improvement was driven by better cash collections and lower tax payments, coupled with a substantial increase in the overall cash and cash equivalents balance to $2.784 billion.

Electronic Arts has entered into a definitive agreement to be acquired by an investor consortium for $210 per share in cash. The transaction is expected to close in the first quarter of fiscal year 2027, subject to customary closing conditions, including regulatory approvals. In light of this pending transaction, EA has suspended its share repurchase program.

Net bookings is an operating performance metric defined as the net amount of products and services sold digitally or sold-in physically in the period, calculated by adding total net revenue to the change in deferred net revenue for online-enabled games. For the quarter ended December 31, 2025, net bookings increased by 38% year-over-year to $3.046 billion, primarily driven by strong sales from the Battlefield 6 release and the global football franchise.