# Electronic Arts (EA) Q1 FY26 Financial Results Summary
**Release Date:** July 29, 2025
Electronic Arts Inc. (NASDAQ: EA) reported its preliminary financial results for the first quarter of fiscal year 2026, ending June 30, 2025. The performance indicates a strong start to FY26, topping expectations due to advancements across various portions of its gaming portfolio. Below is a summary of the key highlights and metrics from the report.
### Selected Operating Highlights and Metrics
– **Net Bookings:**
– Totaled **$1.298 billion**, exceeding the high end of guidance ($1.275 billion).
– Growth of **3%** compared to **$1.262 billion** in Q1 FY25.
– **Portfolio Contributions:**
– Strong performances noted from **EA SPORTS**, **Apex Legends**, and the gaming catalog.
– Notable year-over-year growth in **Global Football** and a record quarter for **FC Mobile**.
– **EA SPORTS F1 25** also showed strong growth, aided by enhanced gameplay experiences.
### Selected Financial Highlights and Metrics
– **Net Revenue:**
– Reported at **$1.671 billion**, slightly higher than **$1.660 billion** in Q1 FY25 (growth of **1%**).
– **Net Cash from Operating Activities:**
– Amounted to **$17 million**, vs. **$120 million** in Q1 FY25 (decrease of **86%**).
– **Share Repurchase:**
– **3 million shares** repurchased during the quarter for **$375 million**.
– Total repurchased in the last twelve months rose to **17.8 million shares** for **$2.5 billion**.
### Dividend Declaration
– EA declared a quarterly cash dividend of **$0.19 per share**, payable on September 17, 2025, to shareholders on record as of August 27, 2025.
### Fiscal Year 2026 Expectations
– **Net Bookings:** Expected between **$7.600 billion and $8.000 billion**.
– **Net Revenue:** Projected to be around **$7.100 billion to $7.500 billion** (up from **$7.298 billion** last fiscal year).
– **GAAP Operating Expenses:** Estimated between **$4.470 billion to $4.570 billion**.
– **Net Income:** Expected to fall between **$795 million to $974 million**.
– **Diluted Earnings Per Share:** Forecasted between **$3.09 and $3.79**.
– **Operating Cash Flow:** Estimated at **$2.200 billion to $2.400 billion**.
### Q2 FY26 Expectations (Ending September 30, 2025)
– **Net Bookings:** Anticipated between **$1.800 billion and $1.900 billion**.
– **Net Revenue:** Projected between **$1.750 billion and $1.850 billion**.
– **Net Income:** Expected in the range of **$73 million to $117 million**.
– **Diluted Earnings Per Share:** Forecasted between **$0.29 and $0.46**.
### Quarterly Financial Highlights (Comparative Results)
| Metric | Q1 FY26 | Q1 FY25 | YoY Change |
|---|---|---|---|
| Total Net Revenue | $1,671 million | $1,660 million | +1% |
| Net Income | $201 million | $280 million | -28% |
| Diluted Earnings Per Share | $0.79 | $1.04 | -24% |
| Operating Cash Flow | $17 million | $120 million | -86% |
| Value of Shares Repurchased | $375 million | $375 million | 0% |
| Number of Shares Repurchased | 3.0 million | 2.8 million | +7.14% |
The Q1 FY26 report demonstrates EA’s diverse portfolio and strong positioning ahead of key launch titles, while also reflecting on some pressures faced in comparison to year earlier figures in net income and operating cash flow. The strategic focus on share repurchase and dividend declaration highlights ongoing return of capital to shareholders.
### Unaudited Condensed Consolidated Statements of Operations
(in $ millions, except per share data)
| June 30, 2025 | June 30, 2024 | |
|---|---|---|
| Net revenue | 1,671 | 1,660 |
| Cost of revenue | 279 | 263 |
| Gross profit | 1,392 | 1,397 |
| Operating expenses: | ||
| Research and development | 706 | 629 |
| Marketing and sales | 214 | 205 |
| General and administrative | 184 | 180 |
| Amortization of intangibles | 17 | 17 |
| Restructuring | — | 2 |
| Total operating expenses | 1,121 | 1,033 |
| Operating income | 271 | 364 |
| Interest and other income (expense), net | 2 | 30 |
| Income before provision for income taxes | 273 | 394 |
| Provision for income taxes | 72 | 114 |
| Net income | 201 | 280 |
| Earnings per share | ||
| Basic | 0.80 | 1.05 |
| Diluted | 0.79 | 1.04 |
| Number of shares used in computation | ||
| Basic | 251 | 266 |
| Diluted | 254 | 268 |
### Unaudited Condensed Consolidated Balance Sheets
(in $ millions)
| June 30, 2025 | March 31, 2025 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | 1,518 | 2,136 |
| Short-term investments | 112 | 112 |
| Receivables, net | 533 | 679 |
| Other current assets | 382 | 349 |
| Total current assets | 2,545 | 3,276 |
| Property and equipment, net | 592 | 586 |
| Goodwill | 5,389 | 5,376 |
| Acquisition-related intangibles, net | 271 | 293 |
| Deferred income taxes, net | 2,462 | 2,420 |
| Other assets | 440 | 417 |
| TOTAL ASSETS | 11,699 | 12,368 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Accounts payable, accrued, and other | 1,306 | 1,359 |
| current liabilities | ||
| Deferred net revenue (online-enabled games) | 1,334 | 1,700 |
| Senior notes, current, net | 400 | 400 |
| Total current liabilities | 3,040 | 3,459 |
| Senior notes, net | 1,484 | 1,484 |
| Income tax obligations | 647 | 594 |
| Other liabilities | 446 | 445 |
| Total liabilities | 5,617 | 5,982 |
| Stockholders’ equity: | ||
| Common stock | 3 | 3 |
| Retained earnings | 6,241 | 6,470 |
| Accumulated other comprehensive loss | -162 | -87 |
| Total stockholders’ equity | 6,082 | 6,386 |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 11,699 | 12,368 |
