Electronic Arts (EA) Q1 2026 earnings summary

Executive summary

• Q1 FY26 delivered strong results, exceeding guidance, with robust performance across sports and entertainment franchises, notably EA SPORTS F1 25 and record FC Mobile net bookings.

• Core communities in global football, American football, and The Sims showed deeper engagement and longer retention.

• Live services accounted for 72% of trailing twelve months net bookings, with notable contributions from Apex Legends and catalog titles.

• Net income was $201 million, with diluted EPS of $0.79, reflecting a year-over-year decrease.

• Entering a major release cycle with Battlefield 6, Skate, and continued innovation in EA Sports titles.

Financial highlights

• Q1 FY26 net bookings reached $1.298 billion, up 3% year-over-year, surpassing guidance.

• Net revenue was $1.671 billion, up 1% year-over-year; gross margin at 83.3%, down 1 percentage point year-over-year.

• Operating expenses rose 9% to $1.12 billion, mainly from increased people costs and strategic investments.

• Operating income for Q1 FY26 was $271 million, a 26% decrease year-over-year.

• Returned $423 million to shareholders via buybacks and dividends in Q1.

Outlook and guidance

• FY26 net bookings expected at $7.6–$8.0 billion; net revenue at $7.1–$7.5 billion; net income at $795–$974 million.

• Q2 net bookings expected at $1.8–$1.9 billion, down 13–9% year-over-year, impacted by phasing of EA Sports FC Deluxe Edition content.

• Operating expenses for Q2 guided at $1.215–$1.235 billion, up 3–4% year-over-year, driven by marketing for Battlefield 6.

• Capital expenditures for FY26 projected at $225 million, focused on hardware, software, and real estate.

• Company plans to return at least 80% of free cash flow to shareholders via repurchases and dividends through FY27.