EA · Q2 2026 Earnings

Cautious

Electronic Arts

Reported October 28, 2025

30-second summary

EA's Q2 FY26 print arrived alongside a pending $55 billion take-private by a consortium of The Public Investment Fund, Silver Lake, and Affinity Partners (announced September 29, 2025). Citing the pending transaction, EA cancelled its earnings conference call and withdrew forward guidance entirely. The underlying quarter landed inside the prior guide — revenue $1.839B (-9% YoY) at the high end of the $1.75–1.85B range, net bookings $1.818B (-13% YoY) near the low end of the $1.80–1.90B guide, GAAP EPS $0.54 above the $0.29–0.46 range — but operating margin compressed sharply (GAAP 10.9% vs 19.0% prior year) and operating cash flow fell to $130M from $234M. With no call, no guidance, and no management commentary beyond a brief CEO quote in the release, the investment thesis is now a deal-close arbitrage rather than a fundamentals story.

Headline numbers

EPS

Q2 FY2026

$0.54

Revenue

Q2 FY2026

$1.84B

-9.2% YoY

Gross margin

Q2 FY2026

75.9%

Free cash flow

Q2 FY2026

$0.09B

Operating margin

Q2 FY2026

10.9%

Key financials

Q2 FY2026

Metric	Q2 FY2026	YoY	Q1 FY2026	QoQ
Revenue	$1.84B	-9.2%	$1.67B	+10.1%
EPS	$0.54	—	$0.79	-31.6%
Gross margin	75.9%	—	83.3%	-740bps
Operating margin	10.9%	—	16.2%	-530bps
Free cash flow	$0.09B	—	$-0.06B	+258.2%

Guidance

Guidance is issued for both next quarter and the full year. Both may appear below.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q2 FY2026	$1.750 billion to $1.850 billion	$1.839 billion	in-line with high end of range	Beat
EPS (GAAP)	Q2 FY2026	$0.29 to $0.46	$0.54	+$0.08 above guide high end	Beat
Net bookings	Q2 FY2026	$1.800 billion to $1.900 billion	$1.818 billion	in-line with low end of range	Beat

New guidance

Metric	Period	Guide	YoY
Free cash flow	FY2025	$1.575 billion to $1.675 billion	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Operating expenses (GAAP)	Q2 FY2026	$1.215 billion to $1.235 billion	Withdrawn — no replacement	—	Withdrawn
Net income	Q2 FY2026	$73 million to $117 million	Withdrawn — no replacement	—	Withdrawn
Revenue	FY2025	$7.100 billion to $7.500 billion	$7.250 billion to $7.400 billion	midpoint lowered from $7.30B to $7.325B; range tightened but reframed	Lowered
EPS (GAAP)	FY2025	$3.09 to $3.79	$3.90 to $4.25	midpoint raised from $3.44 to $4.075 (+$0.635); range widened upward	Raised
Net bookings	FY2025	$7.600 billion to $8.000 billion	$7.000 billion to $7.150 billion	midpoint lowered from $7.80B to $7.075B (−$0.725B / −9.3%); range compressed downward	Lowered
Operating cash flow	FY2025	$2.200 billion to $2.400 billion	$1.800 billion to $1.900 billion	midpoint lowered from $2.30B to $1.85B (−$0.45B / −19.6%)	Lowered

Segment performance

Q2 FY2026

Segment	Q2 FY2026	YoY
Full game	$0.618B	-13.7%
Live services and other	$1.221B	-6.7%
Console	$1.212B	-11.8%
PC & Other	$0.352B	-3.3%
Mobile	$0.275B	-4.2%

Platform metrics

Q2 FY2026

Segment	Q2 FY2026
Net bookings	$1,818 million
Net bookings YoY growth	-13%
Madden NFL 26 net bookings	Growth YoY
Apex Legends net bookings	Double-digit growth YoY
EA SPORTS FC 26 HD net bookings	Mid-single digit growth YoY

Profitability

Q2 FY2026

Segment	Q2 FY2026
Operating cash flow	$130 million
Free cash flow	$87 million
Non-GAAP operating margin	21.8%

Management tone

No tone-shift analysis available for this quarter.

Recurring themes management leaned on this quarter:

Live service adaptability and player responsivenessMassive online communities as strategic focusEA Sports ecosystem expansion beyond traditional gamesTechnology and data (TRACAB acquisition) as competitive moatCreator economy and user-generated content platformsDelayed monetization vs. immediate quality execution

Risks management surfaced:

Competitive dynamics in single-player RPG marketPlayer acquisition cohort timing and retention volatilityGameplay balance sensitivity in competitive communitiesEngagement churn faster than historical precedentFX headwinds (though noted as minimal)

Q&A highlights

Andrew Maroc · Raymond James

What drove slower-than-anticipated FC acquisition this year? Is it console generation transition, market structure, or community negative feedback causing purchase delays?

Management attributed Q3 underperformance to natural ebbs in live service games, coming off record growth years. Key factors: retention of players from prior iterations rather than new acquisition, gameplay tuning felt too defensive for competitive players (addressed with major January 16 update), and competitive cohort lapses later in quarter. Post-update showed record Team of the Year net bookings, record weekly active users, reactivated 2M Ultimate Team players, and positive trends across all cohorts.

Over 40M people playing across FC iterationsFC25 won Game of the YearRecord net bookings for Team of the Year eventRecord weekly active users over Team of the Year weekend

Doug Kruitz · TD Cowan

What is the progress update on Apex Legends initiatives launched in August? What has worked, what hasn't, and where are things heading?

Management outlined three-phase approach: (1) ongoing community support including anti-cheat and content creation with modest progress, (2) major gameplay update planned post-Battlefield launch, and (3) long-term 'Apex 2.0' evolution. Q3 largely in line with expectations despite year-over-year decline. Q4 outlook unchanged. Noted sequential improvement in player conversion and monetization, with battle pass spending uptick in seasons 18-21.

Over 200M people have played ApexTens of millions of current active playersQ3 in line with expectations but down year-over-yearSequential improvement in player conversion and monetization

Chris Scholl · UBS

How do competitors' pipelines influence Battlefield launch timing? What opportunities does new Switch console present for EA's IP?

Management confirmed FY26 launch window targeting for Battlefield but retained flexibility to shift if competitive landscape deteriorates. Emphasized Battlefield is largest investment ever with 4 studios and significant development time. On Switch: expect typical platforms (FC, Madden) to perform well; MySims Cozy Bundle exceeded expectations with 50% new-to-EA players; new hardware typically provides player acquisition opportunities.

Largest Battlefield investment ever4 studios dedicated to BattlefieldFY26 launch window targeted but flexibleMySims Cozy Bundle: 50% new-to-EA players

Clay Griffin · Moffitt Nathanson

How did the introduction of Rush mode impact FC trends? What role did server delay, desync, and server availability issues play in Q3 softness?

Management credited Rush as net positive: second most-played mode, not cannibalizing monetization, additive long-term. Attributed Q3 softness to top-of-funnel acquisition targeting and gameplay balancing (addressed pre-January 16). On server issues: data shows FC is as stable or more stable than prior years; isolated server issues have low overall player impact and are normal course of business.

Rush is second most-played mode in FC25Rush monetization not diluted, expected to be additiveServer stability comparable to or better than prior FC gamesIsolated server issues have low player impact

Mike Kiki · Benchmark Company

Can EA grow in FY26 without Battlefield? How should we think about College Football growth given pent-up demand, and the broader American football ecosystem potential?

Management confirmed FY26 growth expected independent of Battlefield, driven by FC rebound, College Football sequel, Skate, Sims expansion, and live service improvements. College Football had exceptional year with pent-up demand but fundamentals strong: 12,000 player-athletes as ambassadors, college sport growing, NFL growing into new platforms (Amazon, Netflix). Positioned College Football + Madden as early stages of 'next great massive online community' with seamless cross-product growth.

FY26 growth expected without BattlefieldCollege Football summer 2025 launch (correction to '2020' slip in transcript)12,000 young athletes in College Football as franchise ambassadorsCollege football sport at new heights

Answers to last quarter's watch list

Battlefield 6 launch economics — Battlefield 6 launched in Q2 (the press release flags it as a "record-shattering" launch, linking to EA's news release). No quantification of attach, sell-through, or unit economics has been provided, and there will be no call to extract color. Status: Continue monitoring — await 10-Q

Apex trajectory — Per the press release, Apex Legends returned to YoY net bookings growth in Q2, growing double digits. This is a clean positive data point versus the trajectory entering the year, though it laps a depressed base. Status: Resolved positively for Q2

FC26 launch early metrics — Press release states FC 26 HD net bookings were up mid-single-digits YoY versus FC 25 HD (adjusted for deluxe edition timing). A modest positive print after last cycle's softness; no further detail without a call. Status: Resolved modestly positively

College Football 26 normalization — College Football 25's prior-year release was explicitly cited as the dominant driver of the 13% YoY net bookings decline. The comp lap is now visible in the numbers; magnitude not separately quantified. Status: Resolved — comp impact confirmed, magnitude not disclosed

Pricing posture — No pricing commentary disclosed.

Not resolved

What to watch into next quarter

Deal-close timeline and regulatory milestones: With $55B enterprise value, PIF involvement (foreign state-affiliated capital), and Silver Lake/Affinity participation, regulatory review across multiple jurisdictions is the binary variable that defines the equity from here.

Proxy filing: The merger proxy will be the next substantive management document. Watch for go-shop language, break fees, financial projections required to be disclosed in the proxy (often the only forward financial detail in deal contexts), and interim operating covenants.

Capital return cadence between signing and close: EA repurchased $375M in Q2 with a $1B accelerated repurchase referenced in prior commentary. Watch whether the buyback continues at this pace or is throttled by the merger agreement.

10-Q for the September quarter: With no call, the 10-Q is the only place to read margin-compression drivers, segment-level detail beyond what the supplemental schedule provides, and any risk factor changes tied to the transaction.

Battlefield 6 in-period performance: The press release flagged record launch metrics but provided no quantification. The 10-Q and any subsequent operational updates should clarify whether Battlefield is large enough to move FY27 economics independent of the transaction.

Sources

EA Q2 FY2026 press release, SEC filing: https://www.sec.gov/Archives/edgar/data/712515/000071251525000063/earningspressrelease2025_1.htm
EA 8-K announcing definitive merger agreement, September 29, 2025: https://www.sec.gov/ix?doc=/Archives/edgar/data/0000712515/000114036125036415/ef20056167_8k.htm
EA Q1 FY2026 Tapebrief (prior quarter guidance baseline)

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