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Electronic Arts Q2 Earnings and Revenues Decline Year Over Year
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Key Takeaways
EA posted Q2 earnings of $1.21 per share, down 43.7% year over year, on $1.84B in revenues.
Full-game bookings fell 15.9%, while live services bookings declined 10.3% to $1.12B.
EA is set to be acquired in a $55B all-cash deal pending regulatory and shareholder approval.
Electronic Arts (EA - Free Report) reported second-quarter fiscal 2026 earnings of $1.21 per share, which decreased 43.7% year over year. Revenues declined 9.2% year over year to $1.84 billion, reflecting a challenging comparison to the prior year period, which had benefited from the extraordinary launch of College Football 25.
The Zacks Consensus Estimate for earnings was pegged at $1.27 per share. The consensus mark for revenues was pinned at $1.86 billion.
Net bookings for the fiscal second quarter totaled $1.82 billion, down 12.6% year over year, primarily due to a difficult year-over-year comparison.
Full-game net bookings totaled $700 million, down 15.9% year over year. Live services net bookings were $1.12 billion, declining 10.3% year over year.
Electronic Arts Inc. Price, Consensus and EPS Surprise
EA's full-game revenues (33.6% of total revenues) decreased 13.7% year over year to $618 million. Full-game download revenues declined 15.6% year over year to $401 million. Revenues from packaged goods fell 10% year over year to $217 million.
Live services and other revenues (66.4% of total revenues) decreased 6.7% year over year to $1.22 billion.
Based on platforms, revenues from consoles declined 11.8% year over year to $1.21 billion in the reported quarter. Revenues from PC & Other decreased 3.3% year over year to $352 million. Revenues from the mobile platform fell 4.2% year over year to $275 million.
Operating Details of EA
EA's GAAP gross profit decreased 11% from the year-ago quarter's levels to $1.4 billion. Gross margin contracted 200 basis points on a year-over-year basis to 75.9%.
Operating expenses increased 0.9% year over year to $1.2 billion. As a percentage of revenues, operating expenses expanded from 58.5% in the year-ago quarter to 65%.
Operating income on a GAAP basis decreased 47.9% year over year to $200 million. The operating margin contracted from 19% in the year-ago quarter to 10.9% in the reported quarter.
Electronic Arts’ Balance Sheet and Cash Flow
As of Sept. 30, 2025, EA had $1.26 billion in cash and short-term investments compared with $1.63 billion as of June 30, 2025.
Net cash provided by operating activities was $130 million for the quarter and $1.87 billion for the trailing twelve months.
EA repurchased 2.3 million shares for $375 million during the quarter under the stock repurchase program, bringing the total for the trailing twelve months to 17.5 million shares for $2.5 billion.
The company declared a quarterly cash dividend of 19 cents per share of the company's common stock. The dividend will be paid out on Dec. 23, 2025, to stockholders of record as of the close of business on Dec. 3, 2025
Pending Acquisition
EA announced on Sept. 29, 2025, that it had entered into a definitive agreement to be acquired by an investor consortium comprising 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, valuing EA at an enterprise value of approximately $55 billion. The transaction remains subject to customary closing conditions, including required regulatory approvals and approval by EA stockholders.
Shares of Peloton Interactive have surged 36.8% year to date. Peloton Interactive Group is slated to report first-quarter fiscal 2026 results on Nov. 6.
Shares of Take Two Interactive have risen 36.7% year to date. Take Two Interactive is slated to report second-quarter fiscal 2026 results on Nov. 6.
Shares of The Honest Company have declined 50.1% year to date. The Honest Company is set to report third-quarter 2025 results on Nov. 5.
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Electronic Arts Q2 Earnings and Revenues Decline Year Over Year
Key Takeaways
Electronic Arts (EA - Free Report) reported second-quarter fiscal 2026 earnings of $1.21 per share, which decreased 43.7% year over year. Revenues declined 9.2% year over year to $1.84 billion, reflecting a challenging comparison to the prior year period, which had benefited from the extraordinary launch of College Football 25.
The Zacks Consensus Estimate for earnings was pegged at $1.27 per share. The consensus mark for revenues was pinned at $1.86 billion.
Net bookings for the fiscal second quarter totaled $1.82 billion, down 12.6% year over year, primarily due to a difficult year-over-year comparison.
Full-game net bookings totaled $700 million, down 15.9% year over year. Live services net bookings were $1.12 billion, declining 10.3% year over year.
Electronic Arts Inc. Price, Consensus and EPS Surprise
Electronic Arts Inc. price-consensus-eps-surprise-chart | Electronic Arts Inc. Quote
Quarter Details of EA
EA's full-game revenues (33.6% of total revenues) decreased 13.7% year over year to $618 million. Full-game download revenues declined 15.6% year over year to $401 million. Revenues from packaged goods fell 10% year over year to $217 million.
Live services and other revenues (66.4% of total revenues) decreased 6.7% year over year to $1.22 billion.
Based on platforms, revenues from consoles declined 11.8% year over year to $1.21 billion in the reported quarter. Revenues from PC & Other decreased 3.3% year over year to $352 million. Revenues from the mobile platform fell 4.2% year over year to $275 million.
Operating Details of EA
EA's GAAP gross profit decreased 11% from the year-ago quarter's levels to $1.4 billion. Gross margin contracted 200 basis points on a year-over-year basis to 75.9%.
Operating expenses increased 0.9% year over year to $1.2 billion. As a percentage of revenues, operating expenses expanded from 58.5% in the year-ago quarter to 65%.
Operating income on a GAAP basis decreased 47.9% year over year to $200 million. The operating margin contracted from 19% in the year-ago quarter to 10.9% in the reported quarter.
Electronic Arts’ Balance Sheet and Cash Flow
As of Sept. 30, 2025, EA had $1.26 billion in cash and short-term investments compared with $1.63 billion as of June 30, 2025.
Net cash provided by operating activities was $130 million for the quarter and $1.87 billion for the trailing twelve months.
EA repurchased 2.3 million shares for $375 million during the quarter under the stock repurchase program, bringing the total for the trailing twelve months to 17.5 million shares for $2.5 billion.
The company declared a quarterly cash dividend of 19 cents per share of the company's common stock. The dividend will be paid out on Dec. 23, 2025, to stockholders of record as of the close of business on Dec. 3, 2025
Pending Acquisition
EA announced on Sept. 29, 2025, that it had entered into a definitive agreement to be acquired by an investor consortium comprising 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, valuing EA at an enterprise value of approximately $55 billion. The transaction remains subject to customary closing conditions, including required regulatory approvals and approval by EA stockholders.
Zacks Rank & Stocks to Consider
EA currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Consumer Discretionary sector are Peloton Interactive (PTON - Free Report) , Take Two Interactive (TTWO - Free Report) and The Honest Company (HNST - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Peloton Interactive have surged 36.8% year to date. Peloton Interactive Group is slated to report first-quarter fiscal 2026 results on Nov. 6.
Shares of Take Two Interactive have risen 36.7% year to date. Take Two Interactive is slated to report second-quarter fiscal 2026 results on Nov. 6.
Shares of The Honest Company have declined 50.1% year to date. The Honest Company is set to report third-quarter 2025 results on Nov. 5.