It has been about a month since the last earnings report for Electronic Arts (EA Quick QuoteEA - Free Report) . Shares have added about 0.9% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Electronic Arts due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

Electronic Arts Q2 Earnings & Revenues Miss Estimates, Decline Y/Y

Electronic Arts reported second-quarter fiscal 2026 earnings of 54 cents per share, which missed the Zacks Consensus Estimate of $1.27, and decreased 51.4% year over year. Revenues declined 9.2% year over year to $1.84 billion and lagged the consensus mark of $1.86 billion, reflecting a challenging comparison to the prior-year period, which had benefited from the extraordinary launch of College Football 25.

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 $1.118 billion, declining 10.3% year over year.

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 $1.221 billion.

Based on platforms, revenues from consoles declined 11.8% year over year to $1.212 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 common stock. The dividend will be paid out on Dec. 23, 2025, to its stockholders of record as of the close of business on Dec. 3.

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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 5.63% due to these changes.

VGM Scores

Currently, Electronic Arts has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Electronic Arts has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Electronic Arts is part of the Zacks Gaming industry. Over the past month, Las Vegas Sands (LVS Quick QuoteLVS - Free Report) , a stock from the same industry, has gained 16.1%. The company reported its results for the quarter ended September 2025 more than a month ago.

Las Vegas Sands reported revenues of $3.33 billion in the last reported quarter, representing a year-over-year change of +24.2%. EPS of $0.78 for the same period compares with $0.44 a year ago.

For the current quarter, Las Vegas Sands is expected to post earnings of $0.77 per share, indicating a change of +42.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +2.5% over the last 30 days.

Las Vegas Sands has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.