01—Abstract
Summary
Summary of the 8-K filed May 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Electronic Arts reported preliminary fourth-quarter and full-year FY25 results (fiscal year ended March 31, 2025).
FY25 net bookings were $7.355 billiona, down slightly from $7.430 billion in FY24, while net revenue was $7.463 billion versus $7.562 billion a year earlier. Q4 was the standout: net revenue rose 7% year over year to $1.895 billion, GAAP operating income more than doubled to $395 million (from $234 million), and diluted EPS reached $0.98 versus $0.67. Management attributed the strength to EA SPORTS College Football, EA SPORTS FC, The Sims, and the launch of Split Fiction.
Note that the Q4 comparison benefited from large restructuring and acquisition-related charges in the prior-year period. For FY26, management guided to net bookings of $7.6b–8.0 billion, net revenue of $7.1–7.5 billion, and diluted EPS of $3.09–3.79, with a GAAP operating expense range of $4.47–4.57 billion. Growth is expected to come from the EA SPORTS portfolio, The Sims, and the Battlefield and skate. launches, partly offset by roughly 5 points of weakness in Apex Legends and catalog titles.
The Q1 FY26 outlook is for net bookings of $1.175c–1.275 billion and diluted EPS of $0.49–0.66, and management reiterated its commitment to return at least 80% of free cash flow to shareholders through FY27. Capital return remained heavy in the quarter: EA repurchased 9.8 million shares for $1.375 billion, bringing full-year buybacks to 17.6 million shares for $2.5 billion. Free cash flow was $1.858 billion on a trailing-twelve-month basis, and cash plus short-term investments fell to $2.248 billion from $3.262 billion a year earlier, reflecting the buybacks and a $400 million current senior note.
The Board also declared a quarterly dividend of $0.19d per share, payable June 18, 2025. Investors should note that these results are preliminary and remain subject to the audited Form 10-K.
02—Key points
Key Highlights
- FY25 net bookings of $7.355 billion, down about 1% from $7.430 billion, while net revenue was $7.463 billion versus $7.562 billion
- Q4 net revenue grew 7% year over year to $1.895 billion, and Q4 net bookings rose to $1.799 billion from $1.666 billion
- Q4 GAAP operating income rose 69% to $395 million, with GAAP operating margin at 20.8% versus 13.2% a year earlier; non-GAAP operating margin was 31.0%
- Q4 diluted EPS was $0.98 versus $0.67, and full-year diluted EPS was $4.25 versus $4.68
- FY26 guidance: net bookings of $7.6–8.0 billion, net revenue of $7.1–7.5 billion, and diluted EPS of $3.09–3.79, driven by the Battlefield launch and the EA SPORTS portfolio, with about 5 points of Apex Legends and catalog headwind
- Capital return: $1.375 billion of buybacks in Q4 and $2.5 billion for FY25; quarterly dividend of $0.19 per share declared, payable June 18, 2025 to holders of record on May 28, 2025
- Liquidity declined: cash and short-term investments fell to $2.248 billion from $3.262 billion year over year, and total stockholders' equity fell to $6.386 billion from $7.513 billion
03—Questions
Frequently Asked Questions
How did EA perform in the fourth quarter of fiscal 2025?
Q4 net revenue rose 7% to $1.895 billion, and GAAP operating income more than doubled to $395 million. Diluted EPS was $0.98, up from $0.67. Growth was led by College Football, EA SPORTS FC, The Sims, and Split Fiction. The prior-year quarter included large restructuring and acquisition-related charges, which flatters the year-over-year comparison.
What does EA expect for fiscal 2026?
EA guided to net bookings of $7.6–8.0 billion, net revenue of $7.1–7.5 billion, and diluted EPS of $3.09–3.79, based on 257 million diluted shares. Operating cash flow is expected at $2.2–2.4 billion. Management expects growth from the EA SPORTS portfolio, The Sims, and the Battlefield and skate. launches, partly offset by about 5 points of weakness in Apex Legends and catalog titles. Q1 FY26 net bookings are guided to $1.175–1.275 billion, with diluted EPS of $0.49–0.66.
How much is EA returning to shareholders, and is the dividend changing?
In FY25, EA repurchased 17.6 million shares for $2.5 billion, including $1.375 billion in Q4. The company declared a quarterly dividend of $0.19 per share, unchanged, payable June 18, 2025 to holders of record on May 28, 2025. Management intends to return at least 80% of free cash flow through stock repurchases and dividends through FY27.
Why did net bookings decline in FY25 even though Q4 grew?
Full-year net bookings fell to $7.355 billion from $7.430 billion, mainly because of weaker results in the first three quarters. Q4 net bookings rose to $1.799 billion from $1.666 billion, but the year-to-date decline was not fully offset. The filing also shows Apex Legends and catalog titles as ongoing headwinds that are expected to continue into FY26.
Are these results final, and what should investors watch next?
No. The filing states that the figures are preliminary estimates that could differ from the audited results in the Form 10-K for the year ended March 31, 2025. Investors should watch the 10-K for final numbers, the Battlefield reveal planned for this summer, and whether EA can deliver the FY26 net bookings range given the Apex Legends headwind and rising marketing costs.
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