Electronic Arts Q3 Earnings and Revenues Increase Year Over Year

Electronic Arts EA reported third-quarter fiscal 2026 earnings of $4.82 per share, which increased 70.3% year over year. Revenues increased 1% year over year to $1.9 billion, reflecting the successful launch of Battlefield 6, which was the best-selling shooter title of 2025.

The Zacks Consensus Estimate for earnings was pegged at $4.77 per share. The consensus mark for revenues was pinned at $2.86 billion.

Net bookings for the fiscal third quarter totaled $3.05 billion, up 38% year over year, driven by the landmark launch of Battlefield 6 and continued momentum across EA SPORTS FC and Apex Legends.

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 (33.2% of total revenues) increased 5.5% year over year to $632 million. Full-game download revenues increased 22.4% year over year to $546 million. Revenues from packaged goods declined 43.8% year over year to $86 million.

Live services and other revenues (66.8% of total revenues) decreased 1.2% year over year to $1.27 billion.

Based on platforms, revenues from consoles declined 2.7% year over year to $1.18 billion in the reported quarter. Revenues from PC & Other increased 18.6% year over year to $465 million. Revenues from the mobile platform fell 8% year over year to $254 million.

Operating Details of EA

EA's GAAP gross profit decreased 1.7% from the year-ago quarter's levels to $1.4 billion. Gross margin contracted 200 basis points on a year-over-year basis to 73.8%.

Operating expenses increased 21.5% year over year to $1.28 billion. As a percentage of revenues, operating expenses expanded from 55.7% in the year-ago quarter to 67.1%.

Operating income, on a GAAP basis, decreased 66.3% year over year to $127 million. The operating margin contracted from 20% in the year-ago quarter to 6.7% in the reported quarter.

Electronic Arts' Balance Sheet and Cash Flow

As of Dec. 31, 2025, EA had $2.9 billion in cash and short-term investments compared with $1.26 billion as of Sept. 30, 2025.

Net cash provided by operating activities was $1.83 billion for the quarter and $2.52 billion for the trailing 12 months.

EA did not repurchase any shares during the quarter. The company has repurchased 15.1 million shares for $2.13 billion over the trailing twelve months.

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 March 18 to stockholders of record as of the close of business on Feb. 25.

Zacks Rank & Stocks to Consider

EA currently carries a Zacks Rank #3 (Hold).

Peloton Interactive PTON, Ralph Lauren RL and Sharp SHCAY  are some better-ranked stocks that investors can consider in the broader Consumer Discretionary sector.

Peloton Interactive, Ralph Lauren and Sharp carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peloton Interactive and Ralph Lauren are set to report their upcoming results on Feb. 5. Sharp is set to report its upcoming results on Feb. 6.

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This article originally published on Zacks Investment Research (zacks.com).

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