Electronic Arts Reports Q2 FY26 Results
REDWOOD CITY, Calif.--( BUSINESS WIRE)--Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its second fiscal quarter ended September 30, 2025.
“Across our broad portfolio — from EA SPORTS to Battlefield, The Sims, and skate. — our teams continue to create high-quality experiences that connect and inspire players around the world,” said Andrew Wilson, CEO of Electronic Arts. “The creativity, passion, and innovation of our teams are at the heart of everything we do.”
Selected Operating Highlights and Metrics
Selected Financial Highlights and Metrics
Dividend
EA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock. The dividend is payable on December 23, 2025 to stockholders of record as of the close of business on December 3, 2025.
Quarterly Financial Highlights
Three Months Ended
September 30,
2025
2024
(in $ millions, except per share amounts)
Full game
618
716
Live services and other
1,221
1,309
Total net revenue
1,839
2,025
Net income
137
294
Diluted earnings per share
0.54
1.11
Operating cash flow
130
234
Value of shares repurchased
375
375
Number of shares repurchased
2.3
2.6
Cash dividend paid
48
51
Trailing Twelve Months Financial Highlights
Twelve Months Ended
September 30,
2025
2024
(in $ millions)
Full game
1,943
1,917
Live services and other
5,345
5,492
Total net revenue
7,288
7,409
Net income
885
1,046
Operating cash flow
1,872
2,198
Value of shares repurchased
2,500
1,400
Number of shares repurchased
17.5
10.2
Operating Metric
The following is a calculation of our total net bookings for the periods presented:
Three Months Ended
September 30,
Twelve Months Ended
September 30,
2025
2024
2025
2024
(in $ millions)
Total net revenue
1,839
2,025
7,288
7,409
Change in deferred net revenue (online-enabled games)
(21)
54
(158)
(36)
Total net bookings
1,818
2,079
7,130
7,373
Pending Acquisition by Investor Consortium
On September 29, 2025, EA announced that it has entered into a definitive agreement to be acquired by an investor consortium (“the Consortium”) comprised of The Public Investment Fund, private investment funds affiliated with Silver Lake Group, L.L.C. and private investment funds affiliated with Affinity Partners in an all-cash transaction that values EA at an enterprise value of approximately $55 billion. The transaction is subject to customary closing conditions, including receipt of required regulatory approvals and approval by EA stockholders. For additional information, please refer to EA’s Current Report on Form 8-K filed on September 29, 2025, available here.
Conference Call and Supporting Documents
Given the pending transaction, Electronic Arts will not be hosting an earnings conference call this quarter and will no longer provide forward-looking guidance.
For further information and discussion of EA’s financial results, please refer to the financial model of EA’s historical results posted on EA’s IR Website at http://ir.ea.com and EA’s upcoming Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2025.
Forward-Looking Statements
Some statements set forth in this release contain forward-looking statements that are subject to change. Statements including words such as “anticipate,” “believe,” “expect,” “intend,” “estimate,” “plan,” “predict,” “seek,” “goal,” “will,” “may,” “likely,” “should,” “could” (and the negative of any of these terms), “future” and similar expressions also identify forward-looking statements. These forward-looking statements are not guarantees of future performance and reflect management’s current expectations. Our actual results could differ materially from those discussed in the forward-looking statements. Some of the factors which could cause the Company’s results to differ materially from its expectations include the following: sales of the Company’s products and services; the Company’s ability to develop and support digital products and services, including managing online security and privacy; outages of our products, services and technological infrastructure; the Company’s ability to manage expenses; the competition in the interactive entertainment industry; governmental regulations; the effectiveness of the Company’s sales and marketing programs; timely development and release of the Company’s products and services; the Company’s ability to realize the anticipated benefits of, and integrate, acquisitions; the consumer demand for, and the availability of an adequate supply of console hardware units; the Company’s ability to predict consumer preferences and trends; the Company’s ability to develop and implement new technology; foreign currency exchange rate fluctuations; economic and geopolitical conditions; changes in our tax rates or tax laws; the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the proposed transaction with the Consortium that could delay the consummation of the proposed transaction or cause the parties to abandon the proposed transaction; the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement entered into in connection with the proposed transaction; the possibility that the Company’s stockholders may not approve the proposed transaction; the risk that the parties to the proposed transaction may not be able to satisfy the conditions to the proposed transaction in a timely manner or at all; risks related to disruption of the Company’s business resulting from the proposed transaction, including disruption of management time from ongoing business operations due to the proposed transaction; risks relating to certain restrictions during the pendency of the proposed transaction that may impact the ability of the Company to pursue certain business opportunities or strategic transactions; the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the Company’s common stock, including if the proposed transaction is not consummated; the risk of any unexpected costs or expenses resulting from the proposed transaction; the risk of any litigation relating to the proposed transaction; the risk that the proposed transaction and its announcement could have an adverse effect on the ability of the Company to retain and hire key personnel and to maintain relationships with customers, vendors, partners, employees, stockholders and other business relationships and on its operating results and business generally; the risks and uncertainties that will be described in the proxy statement the Company intends to file with the Securities Exchange Commission in connection with the proposed transaction; and other factors described in Part II, Item 1A of Electronic Arts’ latest Quarterly Report on Form 10-Q under the heading “Risk Factors”, as well as in other documents we have filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2025.
These forward-looking statements are current as of October 28, 2025. Electronic Arts assumes no obligation to revise or update any forward-looking statement, except as required by law. In addition, the preliminary financial results set forth in this release are estimates based on information currently available to Electronic Arts.
While Electronic Arts believes these estimates are meaningful, they could differ from the actual amounts that Electronic Arts ultimately reports in its Form 10-Q for the fiscal quarter ended September 30, 2025. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-Q for the fiscal quarter ended September 30, 2025.
About Electronic Arts
Electronic Arts (NASDAQ: EA) is a global leader in digital interactive entertainment. The Company develops and delivers games, content and online services for Internet-connected consoles, mobile devices and personal computers.
In fiscal year 2025, EA posted GAAP net revenue of approximately $7.5 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS FC™, Battlefield™, Apex Legends™, The Sims™, EA SPORTS™ Madden NFL, EA SPORTS™ College Football, Need for Speed™, Dragon Age™, Titanfall™, Plants vs. Zombies™ and EA SPORTS F1 ® . More information about EA is available at www.ea.com/news.
EA, EA SPORTS, EA SPORTS FC, Battlefield, Need for Speed, Apex Legends, The Sims, Dragon Age, Titanfall, and Plants vs. Zombies are trademarks of Electronic Arts Inc. John Madden, NFL, and F1 are the property of their respective owners and used with permission.
1 Net bookings is defined as the net amount of products and services sold digitally or sold-in physically in the period. Net bookings is calculated by adding total net revenue to the change in deferred net revenue for online-enabled games.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(in $ millions, except per share data)
Three Months Ended
September 30,
Six Months Ended September 30,
2025
2024
2025
2024
Net revenue
1,839
2,025
3,510
3,685
Cost of revenue
443
456
722
719
Gross profit
1,396
1,569
2,788
2,966
Operating expenses:
Research and development
686
648
1,392
1,277
Marketing and sales
304
272
518
477
General and administrative
189
197
373
377
Amortization of intangibles
17
17
34
34
Restructuring
—
51
—
53
Total operating expenses
1,196
1,185
2,317
2,218
Operating income
200
384
471
748
Interest and other income (expense), net
(3
)
15
(1
)
45
Income before provision for income taxes
197
399
470
793
Provision for income taxes
60
105
132
219
Net income
137
294
338
574
Earnings per share
Basic
0.55
1.11
1.35
2.17
Diluted
0.54
1.11
1.34
2.15
Number of shares used in computation
Basic
250
264
251
265
Diluted
252
266
253
267
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(in $ millions)
September 30, 2025
March 31, 2025 1
ASSETS
Current assets:
Cash and cash equivalents
1,148
2,136
Short-term investments
112
112
Receivables, net
1,077
679
Other current assets
379
349
Total current assets
2,716
3,276
Property and equipment, net
578
586
Goodwill
5,388
5,376
Acquisition-related intangibles, net
245
293
Deferred income taxes, net
2,455
2,420
Other assets
472
417
TOTAL ASSETS
11,854
12,368
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable, accrued, and other current liabilities
1,514
1,359
Deferred net revenue (online-enabled games)
1,326
1,700
Senior notes, current, net
400
400
Total current liabilities
3,240
3,459
Senior notes, net
1,485
1,484
Income tax obligations
684
594
Other liabilities
445
445
Total liabilities
5,854
5,982
Stockholders’ equity:
Common stock
3
3
Retained earnings
6,153
6,470
Accumulated other comprehensive loss
(156
)
(87
)
Total stockholders’ equity
6,000
6,386
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
11,854
12,368
1Derived from audited consolidated financial statements.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Cash Flows
(in $ millions)
Three Months Ended September 30,
Six Months Ended September 30,
2025
2024
2025
2024
OPERATING ACTIVITIES
Net income
137
294
338
574
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, accretion and impairment
82
122
161
202
Stock-based compensation
174
174
326
317
Change in assets and liabilities
Receivables, net
(543
)
(579
)
(398
)
(447
)
Other assets
(13
)
(78
)
(68
)
(20
)
Accounts payable, accrued, and other liabilities
294
275
196
117
Deferred income taxes, net
7
(37
)
(33
)
(50
)
Deferred net revenue (online-enabled games)
(8
)
63
(375
)
(339
)
Net cash provided by operating activities
130
234
147
354
INVESTING ACTIVITIES
Capital expenditures
(43
)
(50
)
(115
)
(117
)
Proceeds from maturities and sales of short-term investments
30
111
72
239
Purchase of short-term and other investments
(55
)
(107
)
(97
)
(237
)
Acquisitions, net of cash acquired
—
—
(17
)
—
Net cash used in investing activities
(68
)
(46
)
(157
)
(115
)
FINANCING ACTIVITIES
Proceeds from issuance of common stock
45
42
45
42
Cash dividends paid
(48
)
(51
)
(96
)
(101
)
Cash paid to taxing authorities for shares withheld from employees
(32
)
(18
)
(177
)
(139
)
Common stock repurchases and excise taxes paid
(394
)
(375
)
(769
)
(750
)
Net cash used in financing activities
(429
)
(402
)
(997
)
(948
)
Effect of foreign exchange on cash and cash equivalents
(3
)
11
19
6
Change in cash and cash equivalents
(370
)
(203
)
(988
)
(703
)
Beginning cash and cash equivalents
1,518
2,400
2,136
2,900
Ending cash and cash equivalents
1,148
2,197
1,148
2,197
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions, except per share data)
Q2
Q3
Q4
Q1
Q2
YOY %
FY25
FY25
FY25
FY26
FY26
Change
Net revenue
Net revenue
2,025
1,883
1,895
1,671
1,839
(9
%)
GAAP-based financial data
Change in deferred net revenue (online-enabled games) 2
54
332
(96
)
(373
)
(21
)
Gross profit
Gross profit
1,569
1,427
1,527
1,392
1,396
(11
%)
Gross profit (as a % of net revenue)
78
%
76
%
81
%
83
%
76
%
GAAP-based financial data
Acquisition-related expenses
10
10
10
10
9
Change in deferred net revenue (online-enabled games) 2
54
332
(96
)
(373
)
(21
)
Stock-based compensation
4
3
3
3
3
Operating income
Operating income
384
377
395
271
200
(48
%)
Operating income (as a % of net revenue)
19
%
20
%
21
%
16
%
11
%
GAAP-based financial data
Acquisition-related expenses
27
26
27
27
26
Change in deferred net revenue (online-enabled games) 2
54
332
(96
)
(373
)
(21
)
Restructuring and related charges
52
—
4
—
—
Stock-based compensation
174
163
162
152
174
Net income
Net income
294
293
254
201
137
(53
%)
Net income (as a % of net revenue)
15
%
16
%
13
%
12
%
7
%
GAAP-based financial data
Acquisition-related expenses
27
26
27
27
26
Change in deferred net revenue (online-enabled games) 2
54
332
(96
)
(373
)
(21
)
Restructuring and related charges
52
—
4
—
—
Stock-based compensation
174
163
162
152
174
Tax rate used for management reporting
19
%
19
%
19
%
19
%
19
%
Diluted earnings per share
1.11
1.11
0.98
0.79
0.54
(51
%)
Number of shares used in computation
Basic
264
262
257
251
250
Diluted
266
265
259
254
252
2The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of gains/losses on cash flow hedges.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions)
Q2
Q3
Q4
Q1
Q2
YOY %
FY25
FY25
FY25
FY26
FY26
Change
QUARTERLY NET REVENUE PRESENTATIONS
Net revenue by composition
Full game downloads
475
446
367
233
401
(16
%)
Packaged goods
241
153
70
56
217
(10
%)
Full game
716
599
437
289
618
(14
%)
Live services and other
1,309
1,284
1,458
1,382
1,221
(7
%)
Total net revenue
2,025
1,883
1,895
1,671
1,839
(9
%)
Full game
35
%
32
%
23
%
17
%
34
%
Live services and other
65
%
68
%
77
%
83
%
66
%
Total net revenue %
100
%
100
%
100
%
100
%
100
%
GAAP-based financial data
Full game downloads
70
25
(27
)
(46
)
37
Packaged goods
46
9
(26
)
(29
)
45
Full game
116
34
(53
)
(75
)
82
Live services and other
(62
)
298
(43
)
(298
)
(103
)
Total change in deferred net revenue (online-enabled games) by composition 2
54
332
(96
)
(373
)
(21
)
Net revenue by platform
Console
1,374
1,215
1,182
1,007
1,212
(12
%)
PC & Other
364
392
426
374
352
(3
%)
Mobile
287
276
287
290
275
(4
%)
Total net revenue
2,025
1,883
1,895
1,671
1,839
(9
%)
GAAP-based financial data
Console
108
275
(86
)
(317
)
1
PC & Other
(37
)
33
(11
)
(54
)
(6
)
Mobile
(17
)
24
1
(2
)
(16
)
Total change in deferred net revenue (online-enabled games) by platform 2
54
332
(96
)
(373
)
(21
)
2The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of gains/losses on cash flow hedges.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions)
Q2
Q3
Q4
Q1
Q2
YOY %
FY25
FY25
FY25
FY26
FY26
Change
CASH FLOW DATA
Investing cash flow
(46
)
(62
)
214
(89
)
(68
)
Investing cash flow - TTM
(215
)
(226
)
37
17
(5
)
98
%
Financing cash flow
(402
)
(504
)
(1,411
)
(568
)
(429
)
Financing cash flow - TTM
(1,739
)
(1,812
)
(2,863
)
(2,885
)
(2,912
)
(67
%)
Operating cash flow
234
1,176
549
17
130
Operating cash flow - TTM
2,198
2,110
2,079
1,976
1,872
(15
%)
Capital expenditures
50
50
54
72
43
Capital expenditures - TTM
220
218
221
226
219
—
Free cash flow 3
184
1,126
495
(55
)
87
Free cash flow 3 - TTM
1,978
1,892
1,858
1,750
1,653
(16
%)
Common stock repurchases and excise taxes paid
375
383
1,375
375
394
5
%
Cash dividends paid
51
50
48
48
48
(6
%)
DEPRECIATION
Depreciation expense
51
51
51
52
53
4
%
BALANCE SHEET DATA
Cash and cash equivalents
2,197
2,776
2,136
1,518
1,148
Short-term investments
366
379
112
112
112
Cash and cash equivalents, and short-term investments
2,563
3,155
2,248
1,630
1,260
(51
%)
Receivables, net
1,012
742
679
533
1,077
6
%
STOCK-BASED COMPENSATION
Cost of revenue
4
3
3
3
3
Research and development
122
119
115
110
123
Marketing and sales
16
14
14
12
15
General and administrative
32
27
30
27
33
Total stock-based compensation
174
163
162
152
174
RESTRUCTURING AND RELATED CHARGES
Restructuring
51
1
3
—
—
Office space reductions
1
(1
)
1
—
—
Total restructuring and related charges
52
—
4
—
—
3Free cash flow is defined as Operating cash flow less Capital expenditures.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(in $ millions)
The following table provides a reconciliation of non-GAAP operating income and margin to their most directly comparable GAAP financial measure for the three months ended September 30, 2025 plus a comparison to the actuals for the three months ended September 30, 2024.
Three Months Ended
September 30
2025
2024
YOY % Change
Net revenue
1,839
2,025
(9%)
GAAP operating income
200
384
(48%)
Acquisition-related expenses
26
27
Restructuring and related charges
—
52
Stock-based compensation
174
174
Non-GAAP operating income
400
637
(37%)
GAAP operating margin
10.9%
19.0%
Non-GAAP operating margin
21.8%
31.5%
Impact from change in deferred net revenue (online-enabled games)
(100 bps)
170 bps
Non-GAAP Financial Measures
As a supplement to the Company’s financial measures presented in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company presents certain non-GAAP measures of financial performance, including non-GAAP operating margin and free cash flow. These non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, these non-GAAP measures have limitations in that they do not reflect all of the items associated with the Company’s results of operations as determined in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting and differ from GAAP measures with the same names and may differ from non-GAAP financial measures with the same or similar names that are used by other companies.
The non-GAAP financial measures exclude acquisition-related expenses, stock-based compensation, restructuring and related charges, and capital expenditures, as applicable in any given reporting period and our outlook. The Company may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures. Management believes that these non-GAAP financial measures provide investors with additional useful information to better understand and evaluate the Company’s operating results and future prospects because they exclude certain items that may not be indicative of the Company’s core business, operating results, or future outlook. These non-GAAP financial measures, with further adjustments are used by management to understand ongoing financial and business performance.
The Company uses a tax rate of 19% internally to evaluate its operating performance and to forecast, plan, and analyze future periods. Accordingly, the Company applies the same tax rate to its management reporting financial results.
Investors are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measure.