Record FY26 net bookings and cash flow at EA (NASDAQ: EA) as $55B buyout advances
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Electronic Arts Inc. reported a record fiscal 2026, led by strong live services and the launch of Battlefield 6. Net bookings reached $8.026 billion, up 9% year over year, while GAAP net revenue was $7.531 billion, slightly above the prior year.
For the fourth quarter, net revenue rose to $2.120 billion from $1.895 billion and net income increased to $461 million from $254 million, with diluted EPS of $1.81. Full-year net income was $887 million with diluted EPS of $3.51, compared with $1.121 billion and $4.25 a year earlier.
Operating cash flow was $2.553 billion for the year, up from $2.079 billion, and $580 million in the quarter. EA declared a quarterly cash dividend of $0.19 per share, payable June 17, 2026 to stockholders of record on May 27, 2026. The release also reiterates EA’s pending all-cash acquisition by an investor consortium valuing the company at approximately $55 billion.
Positive
- None.
Negative
- None.
Insights
EA posts record FY26 bookings and cash flow, but GAAP earnings ease.
Electronic Arts delivered record FY26 net bookings of $8.026 billion, up 9%, supported by Battlefield 6 and ongoing live services strength. GAAP net revenue grew modestly to $7.531 billion, indicating stable top-line performance with a heavier mix of recurring content.
Profitability was mixed. Q4 operating income rose to $564 million and non-GAAP operating margin improved to 35.0%, yet full-year GAAP operating income declined to $1.162 billion with a 15.4% margin. Higher acquisition-related expenses and stock-based compensation affected GAAP results, while operating cash flow increased to $2.553 billion, showing strong cash generation.
The declared $0.19-per-share quarterly dividend and ongoing $55 billion all-cash take-private agreement with a consortium frame these results in a late-cycle M&A context. Future filings around the fiscal year ended March 31, 2026 and transaction approvals will further clarify integration and capital-return implications.
8-K Event Classification
3 items: 2.02, 8.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
FY26 net bookings: $8.026 billion
FY26 net revenue: $7.531 billion
FY26 operating cash flow: $2.553 billion
+5 more
8 metrics
FY26 net bookings
$8.026 billion
Record fiscal 2026 net bookings, up 9% year over year
FY26 net revenue
$7.531 billion
GAAP net revenue for fiscal year ended March 31, 2026
FY26 operating cash flow
$2.553 billion
Net cash provided by operating activities for fiscal 2026
Q4 2026 net revenue
$2.120 billion
Quarter ended March 31, 2026
Q4 2026 net income
$461 million
Quarter ended March 31, 2026 net income
FY26 net income
$887 million
GAAP net income for fiscal year 2026
Quarterly dividend
$0.19 per share
Cash dividend payable June 17, 2026
Deal enterprise value
$55 billion
All-cash acquisition valuation by investor consortium
Key Terms
net bookings, operating cash flow, all-cash transaction, non-GAAP operating margin, +2 more
6 terms
net bookings financial
"Net bookings1 were a record $8.026 billion in FY26, up 9% year-over-year."
Net bookings measure the total value of contracts, orders or subscriptions a company signs during a period after subtracting cancellations, returns and other order-level reductions; it counts what customers have committed to buy rather than what has already been recorded as revenue. Think of it like a restaurant’s confirmed reservations and menu orders after accounting for no-shows — it signals demand, future sales and business momentum, giving investors a view of upcoming revenue potential.
operating cash flow financial
"Net cash provided by operating activities was $580 million for the quarter and $2.553 billion for the fiscal year."
Operating cash flow is the amount of money a company earns from its main business activities, like selling products or services. It shows how well the company can generate cash to pay bills, invest in growth, or return money to shareholders. This figure helps investors understand if the company’s core operations are healthy and sustainable.
all-cash transaction financial
"in an all-cash transaction that values EA at an enterprise value of approximately $55 billion."
An all-cash transaction is a deal where the full purchase price is paid immediately in cash or cash equivalents, rather than through financing or installment payments. For investors, this type of transaction often indicates a quick, straightforward sale and can signal confidence from the buyer, potentially affecting the value and perception of the involved assets.
non-GAAP operating margin financial
"Non-GAAP operating margin | 25.9% | | 31.2% | |"
Non-GAAP operating margin is a way companies show how much profit they make from their main business activities, excluding certain expenses or income they consider unusual or non-recurring. It helps investors see how well the company is performing in its normal operations, without the effects of one-time costs or gains that might distort the picture.
stock-based compensation financial
"Stock-based compensation | 656 | | 642 | |"
Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.
free cash flow financial
"Free cash flow 3 - TTM | 1,858 | | | 1,750 | | | 1,653 | | | 2,299 | | | 2,323 |"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Earnings Snapshot
Net revenue: $7.531 billion
fiscal year ended March 31, 2026
Net revenue
$7.531 billion
vs. $7.463 billion prior year
Net bookings
$8.026 billion
up 9% year over year
Operating cash flow
$2.553 billion
vs. $2.079 billion prior year
Net income
$887 million
vs. $1.121 billion prior year
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of report (Date of earliest event reported) May 1, 2026
(Exact Name of Registrant as Specified in Its Charter)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): | |||||||||||
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Item 2.02 Result of Operations and Financial Condition.
On May 5, 2026, Electronic Arts Inc. ("Electronic Arts" or “EA”) issued a press release announcing its financial results for the fourth quarter and fiscal year ended March 31, 2026. A copy of the press release is attached hereto as Exhibit 99.1.
Neither the information in this Form 8-K nor the information in the press release attached hereto as Exhibit 99.1 shall be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 8.01 Other Events.
On May 1, 2026, the Audit Committee of EA, on behalf of EA’s full Board of Directors declared a cash dividend of $0.19 per share of EA's common stock. The dividend is payable on June 17, 2026 to stockholders of record as of the close of business on May 27, 2026.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
| 99.1 | Press release dated May 5, 2026, relating to Electronic Arts Inc.’s financial results for its fourth quarter and fiscal year ended March 31, 2026. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
INDEX TO EXHIBITS
| Exhibit No. | Description | |||||||
99.1 | Press release dated May 5, 2026, relating to Electronic Arts Inc.’s financial results for its fourth quarter and fiscal year ended March 31, 2026. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ELECTRONIC ARTS INC. | ||||||||||||||
| Dated: | May 5, 2026 | By: | /s/ Stuart Canfield | |||||||||||
| Stuart Canfield | ||||||||||||||
| Chief Financial Officer | ||||||||||||||
Exhibit 99.1
EA Delivers Record Fiscal Year in Net Bookings and Operating Cash Flow, Underpinned by a Successful Battlefield 6 Launch and Live Services Portfolio Growth
REDWOOD CITY, CA. – May 5, 2026 – Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its fourth quarter and fiscal year ended March 31, 2026.
“Driven by our talented teams and disciplined execution, we delivered a record FY26, highlighted by the incredibly successful launch of our iconic Battlefield franchise,” said Andrew Wilson, CEO of Electronic Arts. “With the recent completion of a debt process that was met with strong investor demand and our ongoing constructive engagement with regulators, we look ahead to closing the transaction and the opportunities it will unlock.”
Selected Operating Highlights and Metrics
•Net bookings1 were a record $8.026 billion in FY26, up 9% year-over-year.
•Battlefield 6 was the best performing Battlefield in a fiscal year setting numerous franchise fiscal year records.
•Global Football net bookings was up mid-single-digits for FY26 with growth across EA SPORTS FC 26, FC Online, and FC Mobile.
•Apex Legends delivered its strongest net bookings quarter of the fiscal year in Q4 reflecting continued momentum as engagement and monetization continue to improve. For FY26, Apex Legends net bookings finished up double digits year-over-year.
Selected Financial Highlights and Metrics
•Net revenue for FY26 was $7.531 billion, up 1% year over year.
•Net cash provided by operating activities was $580 million for the quarter and $2.553 billion for the fiscal year, up 6% and 23% year over year, respectively.
Dividend
EA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock. The dividend is payable on June 17, 2026 to stockholders of record as of the close of business on May 27, 2026.
Quarterly Financial Highlights
| Three Months Ended | |||||||||||
| March 31, | |||||||||||
| (in $ millions, except per share amounts) | 2026 | 2025 | |||||||||
| Full game | 609 | 437 | |||||||||
| Live services and other | 1,511 | 1,458 | |||||||||
| Total net revenue | 2,120 | 1,895 | |||||||||
| Net income | 461 | 254 | |||||||||
| Diluted earnings per share | 1.81 | 0.98 | |||||||||
| Operating cash flow | 580 | 549 | |||||||||
| Value of shares repurchased | — | 1,375 | |||||||||
| Number of shares repurchased | — | 9.8 | |||||||||
| Cash dividend paid | 48 | 48 | |||||||||
Fiscal Year Financial Highlights
| Twelve Months Ended | |||||||||||
| March 31, | |||||||||||
| (in $ millions, except per share amounts) | 2026 | 2025 | |||||||||
| Full game | 2,148 | 2,002 | |||||||||
| Live services and other | 5,383 | 5,461 | |||||||||
| Total net revenue | 7,531 | 7,463 | |||||||||
| Net income | 887 | 1,121 | |||||||||
| Diluted earnings per share | 3.51 | 4.25 | |||||||||
| Operating cash flow | 2,553 | 2,079 | |||||||||
| Value of shares repurchased | 750 | 2,500 | |||||||||
| Number of shares repurchased | 5.3 | 17.6 | |||||||||
| Cash dividend paid | 191 | 199 | |||||||||
Operating Metric
The following is a calculation of our total net bookings for the periods presented:
| Three Months Ended March 31, | Twelve Months Ended March 31, | ||||||||||||||||||||||
| (in $ millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Total net revenue | 2,120 | 1,895 | 7,531 | 7,463 | |||||||||||||||||||
| Change in deferred net revenue (online-enabled games) | (256) | (96) | 495 | (108) | |||||||||||||||||||
| Total net bookings | 1,864 | 1,799 | 8,026 | 7,355 | |||||||||||||||||||
Pending Acquisition by Investor Consortium
On September 29, 2025, EA announced that it has entered into a definitive agreement to be acquired by an investor consortium (“the Consortium”) comprised of 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 that values EA at an enterprise value of approximately $55 billion. There are a limited number of regulatory reviews outstanding, and the parties are working diligently to complete these remaining reviews. For additional information, please refer to EA’s filings with the Securities and Exchange Commission.
Conference Call and Supporting Documents
Given the pending transaction, Electronic Arts will not be hosting an earnings conference call this quarter.
For further information and discussion of EA’s financial results, please refer to the financial model of EA’s historical results posted on EA’s IR Website at http://ir.ea.com and EA’s upcoming Annual Report on Form 10-K for the fiscal year ended March 31, 2026.
Forward-Looking Statements
Some statements set forth in this release contain forward-looking statements that are subject to change. Statements including words such as “anticipate,” “believe,” “expect,” “intend,” “estimate,” “plan,” “predict,” “seek,” “goal,” “will,” “may,” “likely,” “should,” “could” (and the negative of any of these terms), “future” and similar expressions also identify forward-looking statements. These forward-looking statements are not guarantees of future performance and reflect management’s current expectations. Our actual results could differ materially from those discussed in the forward-looking statements. Some of the factors which could cause the Company’s results to differ materially from its expectations include the following: sales of the Company’s products and services; the Company’s ability to develop and support digital products and services, including managing online security and privacy; outages of our products, services and technological infrastructure; the Company’s ability to manage expenses; the competition in the interactive entertainment industry; governmental regulations; the effectiveness of the Company’s sales and marketing programs; timely development and release of the Company’s products and services; the Company’s ability to realize the anticipated benefits of, and integrate, acquisitions; the consumer demand for, and the availability of an adequate supply of console hardware units; the Company’s ability to predict consumer preferences and trends; the Company’s ability to develop and implement new technology; foreign currency exchange rate fluctuations; economic and geopolitical conditions; changes in our tax rates or tax laws; the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the proposed transaction with the Consortium that could delay the consummation of the proposed transaction or cause the parties to abandon the proposed transaction; the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement entered into in connection with the proposed transaction; the risk that the parties to the proposed transaction may not be able to satisfy the conditions to the proposed transaction in a timely manner or at all; risks related to disruption of the Company’s business resulting from the proposed transaction, including disruption of management time from ongoing business operations due to the proposed transaction; risks relating to certain restrictions during the pendency of the proposed transaction that may impact the ability of the Company to pursue certain business opportunities or strategic transactions; the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the Company’s common stock, including if the proposed transaction is not consummated; the risk of any unexpected costs or expenses resulting from the proposed transaction; the risk of any litigation relating to the proposed transaction; the risk that the proposed transaction and its announcement could have an adverse effect on the ability of the Company to retain and hire key
personnel and to maintain relationships with customers, vendors, partners, employees, stockholders and other business relationships and on its operating results and business generally; the risks and uncertainties that are described in the proxy statement that the Company has filed with the Securities Exchange Commission in connection with the proposed transaction; and other factors described in Part II, Item 1A of Electronic Arts’ latest Quarterly Report on Form 10-Q under the heading “Risk Factors”, as well as in other documents we have filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2025.
These forward-looking statements are current as of May 5, 2026. Electronic Arts assumes no obligation to revise or update any forward-looking statement, except as required by law. In addition, the preliminary financial results set forth in this release are estimates based on information currently available to Electronic Arts.
While Electronic Arts believes these estimates are meaningful, they could differ from the actual amounts that Electronic Arts ultimately reports in its Annual Report on Form 10-K for the fiscal year ended March 31, 2026. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-K for the fiscal year ended March 31, 2026.
About Electronic Arts
Electronic Arts (NASDAQ: EA) is a global leader in digital interactive entertainment. The Company develops and delivers games, content and online services for Internet-connected consoles, mobile devices and personal computers.
In fiscal year 2026, EA posted GAAP net revenue of approximately $7.5 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS FC™, Battlefield™, Apex Legends™, The Sims™, EA SPORTS™ Madden NFL, EA SPORTS™ College Football, Need for Speed™, Dragon Age™, Titanfall™, Plants vs. Zombies™ and EA SPORTS F1®. More information about EA is available at www.ea.com/news.
EA, EA SPORTS, EA SPORTS FC, Battlefield, Need for Speed, Apex Legends, The Sims, Dragon Age, Titanfall, and Plants vs. Zombies are trademarks of Electronic Arts Inc. John Madden, NFL, and F1 are the property of their respective owners and used with permission.
For additional information, please contact:
| Andrew Uerkwitz | Justin Higgs | ||||
| Vice President, Investor Relations | Vice President, Corporate Communications | ||||
| 650-674-7191 | 925-502-9253 | ||||
| auerkwitz@ea.com | jhiggs@ea.com | ||||
1 Net bookings is defined as the net amount of products and services sold digitally or sold-in physically in the period. Net bookings is calculated by adding total net revenue to the change in deferred net revenue for online-enabled games
| ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||||||||||||||||||||
| Unaudited Condensed Consolidated Statements of Operations | |||||||||||||||||||||||
| (in $ millions, except per share data) | |||||||||||||||||||||||
| Three Months Ended March 31, | Twelve Months Ended March 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net revenue | 2,120 | 1,895 | 7,531 | 7,463 | |||||||||||||||||||
| Cost of revenue | 364 | 368 | 1,584 | 1,543 | |||||||||||||||||||
| Gross profit | 1,756 | 1,527 | 5,947 | 5,920 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Research and development | 732 | 686 | 2,828 | 2,569 | |||||||||||||||||||
| Marketing and sales | 254 | 234 | 1,128 | 962 | |||||||||||||||||||
| General and administrative | 191 | 192 | 763 | 745 | |||||||||||||||||||
| Amortization of intangibles | 15 | 17 | 66 | 67 | |||||||||||||||||||
| Restructuring | — | 3 | — | 57 | |||||||||||||||||||
| Total operating expenses | 1,192 | 1,132 | 4,785 | 4,400 | |||||||||||||||||||
| Operating income | 564 | 395 | 1,162 | 1,520 | |||||||||||||||||||
| Interest and other income (expense), net | 15 | 12 | 18 | 85 | |||||||||||||||||||
| Income before provision for income taxes | 579 | 407 | 1,180 | 1,605 | |||||||||||||||||||
| Provision for income taxes | 118 | 153 | 293 | 484 | |||||||||||||||||||
| Net income | 461 | 254 | 887 | 1,121 | |||||||||||||||||||
| Earnings per share | |||||||||||||||||||||||
| Basic | 1.84 | 0.99 | 3.55 | 4.28 | |||||||||||||||||||
| Diluted | 1.81 | 0.98 | 3.51 | 4.25 | |||||||||||||||||||
| Number of shares used in computation | |||||||||||||||||||||||
| Basic | 250 | 257 | 250 | 262 | |||||||||||||||||||
| Diluted | 254 | 259 | 253 | 264 | |||||||||||||||||||
| ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||||||||
| Unaudited Condensed Consolidated Balance Sheets | |||||||||||
| (in $ millions) | |||||||||||
| March 31, 2026 | March 31, 20251 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | 2,864 | 2,136 | |||||||||
| Short-term investments | 116 | 112 | |||||||||
| Receivables, net | 632 | 679 | |||||||||
| Other current assets | 361 | 349 | |||||||||
| Total current assets | 3,973 | 3,276 | |||||||||
| Property and equipment, net | 613 | 586 | |||||||||
| Goodwill | 5,388 | 5,376 | |||||||||
| Acquisition-related intangibles, net | 195 | 293 | |||||||||
| Deferred income taxes, net | 2,433 | 2,420 | |||||||||
| Other assets | 529 | 417 | |||||||||
| TOTAL ASSETS | 13,131 | 12,368 | |||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable, accrued, and other current liabilities | 1,564 | 1,359 | |||||||||
| Deferred net revenue (online-enabled games) | 2,233 | 1,700 | |||||||||
| Senior notes, current, net | — | 400 | |||||||||
| Total current liabilities | 3,797 | 3,459 | |||||||||
| Senior notes, net | 1,485 | 1,484 | |||||||||
| Income tax obligations | 604 | 594 | |||||||||
| Other liabilities | 481 | 445 | |||||||||
| Total liabilities | 6,367 | 5,982 | |||||||||
| Stockholders’ equity: | |||||||||||
| Common stock | 3 | 3 | |||||||||
| Additional paid-in capital | 256 | — | |||||||||
| Retained earnings | 6,607 | 6,470 | |||||||||
| Accumulated other comprehensive loss | (102) | (87) | |||||||||
| Total stockholders’ equity | 6,764 | 6,386 | |||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 13,131 | 12,368 | |||||||||
1Derived from audited consolidated financial statements.
| ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||||||||||||||||||||
| Unaudited Condensed Consolidated Statements of Cash Flows | |||||||||||||||||||||||
| (in $ millions) | |||||||||||||||||||||||
| Three Months Ended March 31, | Twelve Months Ended March 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| OPERATING ACTIVITIES | |||||||||||||||||||||||
| Net income | 461 | 254 | 887 | 1,121 | |||||||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||
| Depreciation, amortization, accretion and impairment | 83 | 79 | 323 | 356 | |||||||||||||||||||
| Stock-based compensation | 152 | 162 | 656 | 642 | |||||||||||||||||||
| Change in assets and liabilities | |||||||||||||||||||||||
| Receivables, net | 197 | 64 | 46 | (115) | |||||||||||||||||||
| Other assets | 4 | 19 | (85) | 40 | |||||||||||||||||||
| Accounts payable, accrued, and other liabilities | (78) | 29 | 206 | 190 | |||||||||||||||||||
| Deferred income taxes, net | 17 | 48 | (13) | (41) | |||||||||||||||||||
| Deferred net revenue (online-enabled games) | (256) | (106) | 533 | (114) | |||||||||||||||||||
| Net cash provided by operating activities | 580 | 549 | 2,553 | 2,079 | |||||||||||||||||||
| INVESTING ACTIVITIES | |||||||||||||||||||||||
| Capital expenditures | (61) | (54) | (230) | (221) | |||||||||||||||||||
| Proceeds from maturities and sales of short-term investments | 42 | 329 | 129 | 695 | |||||||||||||||||||
| Purchase of short-term and other investments | (43) | (61) | (158) | (437) | |||||||||||||||||||
| Acquisitions, net of cash acquired | — | — | (17) | — | |||||||||||||||||||
| Net cash provided by (used in) investing activities | (62) | 214 | (276) | 37 | |||||||||||||||||||
| FINANCING ACTIVITIES | |||||||||||||||||||||||
| Proceeds from issuance of common stock | 38 | 35 | 83 | 78 | |||||||||||||||||||
| Payment of senior notes | (400) | — | (400) | — | |||||||||||||||||||
| Cash dividends paid | (48) | (48) | (191) | (199) | |||||||||||||||||||
| Cash paid to taxing authorities for shares withheld from employees | (25) | (23) | (291) | (234) | |||||||||||||||||||
| Common stock repurchases and excise taxes paid | — | (1,375) | (769) | (2,508) | |||||||||||||||||||
| Net cash used in financing activities | (435) | (1,411) | (1,568) | (2,863) | |||||||||||||||||||
| Effect of foreign exchange on cash and cash equivalents | (3) | 8 | 19 | (17) | |||||||||||||||||||
| Change in cash and cash equivalents | 80 | (640) | 728 | (764) | |||||||||||||||||||
| Beginning cash and cash equivalents | 2,784 | 2,776 | 2,136 | 2,900 | |||||||||||||||||||
| Ending cash and cash equivalents | 2,864 | 2,136 | 2,864 | 2,136 | |||||||||||||||||||
| ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||
| Unaudited Supplemental Financial Information and Business Metrics | |||||||||||||||||||||||||||||||||||
| (in $ millions, except per share data) | |||||||||||||||||||||||||||||||||||
| Q4 | Q1 | Q2 | Q3 | Q4 | YOY % | ||||||||||||||||||||||||||||||
| FY25 | FY26 | FY26 | FY26 | FY26 | Change | ||||||||||||||||||||||||||||||
| Net revenue | |||||||||||||||||||||||||||||||||||
| Net revenue | 1,895 | 1,671 | 1,839 | 1,901 | 2,120 | 12 | % | ||||||||||||||||||||||||||||
| GAAP-based financial data | |||||||||||||||||||||||||||||||||||
Change in deferred net revenue (online-enabled games)2 | (96) | (373) | (21) | 1,145 | (256) | ||||||||||||||||||||||||||||||
| Gross profit | |||||||||||||||||||||||||||||||||||
| Gross profit | 1,527 | 1,392 | 1,396 | 1,403 | 1,756 | 15 | % | ||||||||||||||||||||||||||||
| Gross profit (as a % of net revenue) | 81 | % | 83 | % | 76 | % | 74 | % | 83 | % | |||||||||||||||||||||||||
| GAAP-based financial data | |||||||||||||||||||||||||||||||||||
| Acquisition-related expenses | 10 | 10 | 9 | 9 | 9 | ||||||||||||||||||||||||||||||
Change in deferred net revenue (online-enabled games)2 | (96) | (373) | (21) | 1,145 | (256) | ||||||||||||||||||||||||||||||
| Stock-based compensation | 3 | 3 | 3 | 3 | 2 | ||||||||||||||||||||||||||||||
| Operating income | |||||||||||||||||||||||||||||||||||
| Operating income | 395 | 271 | 200 | 127 | 564 | 43 | % | ||||||||||||||||||||||||||||
| Operating income (as a % of net revenue) | 21 | % | 16 | % | 11 | % | 7 | % | 27 | % | |||||||||||||||||||||||||
| GAAP-based financial data | |||||||||||||||||||||||||||||||||||
| Acquisition-related expenses* | 27 | 27 | 26 | 53 | 25 | ||||||||||||||||||||||||||||||
Change in deferred net revenue (online-enabled games)2 | (96) | (373) | (21) | 1,145 | (256) | ||||||||||||||||||||||||||||||
| Restructuring and related charges | 4 | — | — | — | — | ||||||||||||||||||||||||||||||
| Stock-based compensation | 162 | 152 | 174 | 178 | 152 | ||||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||||||||
| Net income | 254 | 201 | 137 | 88 | 461 | 81 | % | ||||||||||||||||||||||||||||
| Net income (as a % of net revenue) | 13 | % | 12 | % | 7 | % | 5 | % | 22 | % | |||||||||||||||||||||||||
| GAAP-based financial data | |||||||||||||||||||||||||||||||||||
| Acquisition-related expenses* | 27 | 27 | 26 | 53 | 25 | ||||||||||||||||||||||||||||||
Change in deferred net revenue (online-enabled games)2 | (96) | (373) | (21) | 1,145 | (256) | ||||||||||||||||||||||||||||||
| Restructuring and related charges | 4 | — | — | — | — | ||||||||||||||||||||||||||||||
| Stock-based compensation | 162 | 152 | 174 | 178 | 152 | ||||||||||||||||||||||||||||||
| Tax rate used for management reporting | 19 | % | 19 | % | 19 | % | 19 | % | 19 | % | |||||||||||||||||||||||||
| Diluted earnings per share | 0.98 | 0.79 | 0.54 | 0.35 | 1.81 | 85 | % | ||||||||||||||||||||||||||||
| Number of shares used in computation | |||||||||||||||||||||||||||||||||||
| Basic | 257 | 251 | 250 | 250 | 250 | ||||||||||||||||||||||||||||||
| Diluted | 259 | 254 | 252 | 253 | 254 | ||||||||||||||||||||||||||||||
2The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of gains/losses on cash flow hedges.
*Includes (i) amortization and impairment of intangibles, and (ii) fees and other direct expenses related to our proposed transaction with the Consortium announced on September 29, 2025.
| ELECTRONIC ARTS INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||
| Unaudited Supplemental Financial Information and Business Metrics | ||||||||||||||||||||||||||||||||||||||
| (in $ millions) | ||||||||||||||||||||||||||||||||||||||
| Q4 | Q1 | Q2 | Q3 | Q4 | YOY % | |||||||||||||||||||||||||||||||||
| FY25 | FY26 | FY26 | FY26 | FY26 | Change | |||||||||||||||||||||||||||||||||
| QUARTERLY NET REVENUE PRESENTATIONS | ||||||||||||||||||||||||||||||||||||||
| Net revenue by composition | ||||||||||||||||||||||||||||||||||||||
| Full game downloads | 367 | 233 | 401 | 546 | 528 | 44 | % | |||||||||||||||||||||||||||||||
| Packaged goods | 70 | 56 | 217 | 86 | 81 | 16 | % | |||||||||||||||||||||||||||||||
| Full game | 437 | 289 | 618 | 632 | 609 | 39 | % | |||||||||||||||||||||||||||||||
| Live services and other | 1,458 | 1,382 | 1,221 | 1,269 | 1,511 | 4 | % | |||||||||||||||||||||||||||||||
| Total net revenue | 1,895 | 1,671 | 1,839 | 1,901 | 2,120 | 12 | % | |||||||||||||||||||||||||||||||
| Full game | 23 | % | 17 | % | 34 | % | 33 | % | 29 | % | ||||||||||||||||||||||||||||
| Live services and other | 77 | % | 83 | % | 66 | % | 67 | % | 71 | % | ||||||||||||||||||||||||||||
| Total net revenue % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||||
| GAAP-based financial data | ||||||||||||||||||||||||||||||||||||||
| Full game downloads | (27) | (46) | 37 | 451 | (220) | |||||||||||||||||||||||||||||||||
| Packaged goods | (26) | (29) | 45 | 59 | (49) | |||||||||||||||||||||||||||||||||
| Full game | (53) | (75) | 82 | 510 | (269) | |||||||||||||||||||||||||||||||||
| Live services and other | (43) | (298) | (103) | 635 | 13 | |||||||||||||||||||||||||||||||||
Total change in deferred net revenue (online-enabled games) by composition2 | (96) | (373) | (21) | 1,145 | (256) | |||||||||||||||||||||||||||||||||
| Net revenue by platform | ||||||||||||||||||||||||||||||||||||||
| Console | 1,182 | 1,007 | 1,212 | 1,182 | 1,293 | 9 | % | |||||||||||||||||||||||||||||||
| PC & Other | 426 | 374 | 352 | 465 | 555 | 30 | % | |||||||||||||||||||||||||||||||
| Mobile | 287 | 290 | 275 | 254 | 272 | (5 | %) | |||||||||||||||||||||||||||||||
| Total net revenue | 1,895 | 1,671 | 1,839 | 1,901 | 2,120 | 12 | % | |||||||||||||||||||||||||||||||
| GAAP-based financial data | ||||||||||||||||||||||||||||||||||||||
| Console | (86) | (317) | 1 | 747 | (222) | |||||||||||||||||||||||||||||||||
| PC & Other | (11) | (54) | (6) | 343 | (87) | |||||||||||||||||||||||||||||||||
| Mobile | 1 | (2) | (16) | 55 | 53 | |||||||||||||||||||||||||||||||||
Total change in deferred net revenue (online-enabled games) by platform2 | (96) | (373) | (21) | 1,145 | (256) | |||||||||||||||||||||||||||||||||
2The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of gains/losses on cash flow hedges.
| ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||
| Unaudited Supplemental Financial Information and Business Metrics | |||||||||||||||||||||||||||||||||||
| (in $ millions) | |||||||||||||||||||||||||||||||||||
| Q4 | Q1 | Q2 | Q3 | Q4 | YOY % | ||||||||||||||||||||||||||||||
| FY25 | FY26 | FY26 | FY26 | FY26 | Change | ||||||||||||||||||||||||||||||
| CASH FLOW DATA | |||||||||||||||||||||||||||||||||||
| Investing cash flow | 214 | (89) | (68) | (57) | (62) | ||||||||||||||||||||||||||||||
| Investing cash flow - TTM | 37 | 17 | (5) | — | (276) | (846 | %) | ||||||||||||||||||||||||||||
| Financing cash flow | (1,411) | (568) | (429) | (136) | (435) | ||||||||||||||||||||||||||||||
| Financing cash flow - TTM | (2,863) | (2,885) | (2,912) | (2,544) | (1,568) | 45 | % | ||||||||||||||||||||||||||||
| Operating cash flow | 549 | 17 | 130 | 1,826 | 580 | ||||||||||||||||||||||||||||||
| Operating cash flow - TTM | 2,079 | 1,976 | 1,872 | 2,522 | 2,553 | 23 | % | ||||||||||||||||||||||||||||
| Capital expenditures | 54 | 72 | 43 | 54 | 61 | ||||||||||||||||||||||||||||||
| Capital expenditures - TTM | 221 | 226 | 219 | 223 | 230 | 4 | % | ||||||||||||||||||||||||||||
Free cash flow3 | 495 | (55) | 87 | 1,772 | 519 | ||||||||||||||||||||||||||||||
Free cash flow3 - TTM | 1,858 | 1,750 | 1,653 | 2,299 | 2,323 | 25 | % | ||||||||||||||||||||||||||||
| Common stock repurchases and excise taxes paid | 1,375 | 375 | 394 | — | — | (100 | %) | ||||||||||||||||||||||||||||
| Cash dividends paid | 48 | 48 | 48 | 47 | 48 | — | |||||||||||||||||||||||||||||
| DEPRECIATION | |||||||||||||||||||||||||||||||||||
| Depreciation expense | 51 | 52 | 53 | 53 | 58 | 14 | % | ||||||||||||||||||||||||||||
| BALANCE SHEET DATA | |||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 2,136 | 1,518 | 1,148 | 2,784 | 2,864 | ||||||||||||||||||||||||||||||
| Short-term investments | 112 | 112 | 112 | 115 | 116 | ||||||||||||||||||||||||||||||
| Cash and cash equivalents, and short-term investments | 2,248 | 1,630 | 1,260 | 2,899 | 2,980 | 33 | % | ||||||||||||||||||||||||||||
| Receivables, net | 679 | 533 | 1,077 | 829 | 632 | (7 | %) | ||||||||||||||||||||||||||||
| STOCK-BASED COMPENSATION | |||||||||||||||||||||||||||||||||||
| Cost of revenue | 3 | 3 | 3 | 3 | 2 | ||||||||||||||||||||||||||||||
| Research and development | 115 | 110 | 123 | 127 | 107 | ||||||||||||||||||||||||||||||
| Marketing and sales | 14 | 12 | 15 | 16 | 14 | ||||||||||||||||||||||||||||||
| General and administrative | 30 | 27 | 33 | 32 | 29 | ||||||||||||||||||||||||||||||
| Total stock-based compensation | 162 | 152 | 174 | 178 | 152 | ||||||||||||||||||||||||||||||
| RESTRUCTURING AND RELATED CHARGES | |||||||||||||||||||||||||||||||||||
| Restructuring | 3 | — | — | — | — | ||||||||||||||||||||||||||||||
| Office space reductions | 1 | — | — | — | — | ||||||||||||||||||||||||||||||
| Total restructuring and related charges | 4 | — | — | — | — | ||||||||||||||||||||||||||||||
3Free cash flow is defined as Operating cash flow less Capital expenditures.
| ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||||||||||||||
| Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures | |||||||||||||||||
| (in $ millions) | |||||||||||||||||
| The following table provides a reconciliation of non-GAAP operating income and margin to their most directly comparable GAAP financial measure for the twelve months ended March 31, 2026 plus a comparison to the actuals for the twelve months ended March 31, 2025. | |||||||||||||||||
| Twelve Months Ended | |||||||||||||||||
| March 31, | |||||||||||||||||
| 2026 | 2025 | YOY % Change | |||||||||||||||
| Net revenue | 7,531 | 7,463 | 1% | ||||||||||||||
| GAAP operating income | 1,162 | 1,520 | (24)% | ||||||||||||||
| Acquisition-related expenses* | 131 | 107 | |||||||||||||||
| Restructuring and related charges | — | 62 | |||||||||||||||
| Stock-based compensation | 656 | 642 | |||||||||||||||
| Non-GAAP operating income | 1,949 | 2,331 | (16%) | ||||||||||||||
| GAAP operating margin | 15.4% | 20.4% | |||||||||||||||
| Non-GAAP operating margin | 25.9% | 31.2% | |||||||||||||||
| Impact from change in deferred net revenue (online-enabled games) | 460 bps | (100 bps) | |||||||||||||||
*Includes (i) amortization and impairment of intangibles, and (ii) fees and other direct expenses related to our proposed transaction with the
Consortium announced on September 29, 2025.
| ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||||||||||||||
| Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures | |||||||||||||||||
| (in $ millions) | |||||||||||||||||
| The following table provides a reconciliation of non-GAAP operating income and margin to their most directly comparable GAAP financial measure for the three months ended March 31, 2026 plus a comparison to the actuals for the three months ended March 31, 2025. | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
| March 31 | |||||||||||||||||
| 2026 | 2025 | YOY % Change | |||||||||||||||
| Net revenue | 2,120 | 1,895 | 12% | ||||||||||||||
| GAAP operating income | 564 | 395 | 43% | ||||||||||||||
| Acquisition-related expenses* | 25 | 27 | |||||||||||||||
| Restructuring and related charges | — | 4 | |||||||||||||||
| Stock-based compensation | 152 | 162 | |||||||||||||||
| Non-GAAP operating income | 741 | 588 | 26% | ||||||||||||||
| GAAP operating margin | 26.6% | 20.8% | |||||||||||||||
| Non-GAAP operating margin | 35.0% | 31.0% | |||||||||||||||
| Impact from change in deferred net revenue (online-enabled games) | (900 bps) | (370 bps) | |||||||||||||||
*Includes (i) amortization and impairment of intangibles, and (ii) fees and other direct expenses related to our proposed transaction with the
Consortium announced on September 29, 2025.
Non-GAAP Financial Measures
As a supplement to the Company’s financial measures presented in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company presents certain non-GAAP measures of financial performance, including non-GAAP operating margin and free cash flow. These non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, these non-GAAP measures have limitations in that they do not reflect all of the items associated with the Company’s results of operations as determined in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting and differ from GAAP measures with the same names and may differ from non-GAAP financial measures with the same or similar names that are used by other companies.
The non-GAAP financial measures exclude acquisition-related expenses, stock-based compensation, restructuring and related charges, and capital expenditures, as applicable in any given reporting period and our outlook. The Company may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures. Management believes that these non-GAAP financial measures provide investors with additional useful information to better understand and evaluate the Company’s operating results and future prospects because they exclude certain items that may not be indicative of the Company’s core business, operating results, or future outlook. These non-GAAP financial measures, with further adjustments are used by management to understand ongoing financial and business performance.
The Company uses a tax rate of 19% internally to evaluate its operating performance and to forecast, plan, and analyze future periods. Accordingly, the Company applies the same tax rate to its management reporting financial results.
Investors are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measure.
FAQ
How did Electronic Arts (EA) perform financially in fiscal year 2026?
Electronic Arts reported fiscal 2026 GAAP net revenue of about $7.5 billion, slightly above the prior year’s $7.463 billion. Net bookings reached a record $8.026 billion, up 9%, and operating cash flow increased to $2.553 billion, reflecting strong cash generation from its games portfolio.
What were Electronic Arts’ Q4 2026 revenue and earnings results?
In Q4 2026, Electronic Arts generated $2.120 billion in net revenue, up from $1.895 billion a year earlier. Net income rose to $461 million, compared with $254 million, and diluted earnings per share improved to $1.81, versus $0.98 in the prior-year quarter.
How strong were EA’s net bookings and live services in FY26?
EA’s net bookings were a record $8.026 billion in fiscal 2026, up 9% year over year. Battlefield 6 set franchise records, global football bookings grew, and Apex Legends achieved double-digit net bookings growth, highlighting the importance of live services and ongoing player engagement.
What dividend did Electronic Arts declare in this 8-K filing?
Electronic Arts declared a quarterly cash dividend of $0.19 per share of common stock. The dividend is payable on June 17, 2026 to stockholders of record as of the close of business on May 27, 2026, continuing the company’s cash-return program.
How did Electronic Arts’ profitability metrics change year over year in FY26?
For FY26, GAAP operating income was $1.162 billion with a 15.4% operating margin, compared with $1.520 billion and 20.4% the prior year. Non-GAAP operating income reached $1.949 billion with a 25.9% margin, reflecting adjustments for acquisition-related expenses, restructuring, and stock-based compensation.