Electronic Arts Inc.

EA reported Q1 FY26 net bookings of $1.3 billion, up 3% year over year, and net revenue of $1.67 billion, up 1%. GAAP EPS was $0.79. Gross margin was 83.3%, down 90 basis points, with cost of revenue at $279 million and operating expenses at $1.12 billion, up 9%. Full game net bookings were $214 million, up 27%, and live services net bookings were $1.08 billion, down 1%. For Q2 FY26, EA expects net bookings of $1.8 billion to $1.9 billion, down 13% to down 9% year over year. GAAP net revenue is guided to $1.75 billion to $1.85 billion, cost of revenue to $430 million to $450 million, operating expenses to approximately $1.215 billion to $1.235 billion, and EPS to $0.29 to $0.46. Management said FY26 guidance remains unchanged and noted a 4-point headwind from EA SPORTS FC deluxe edition timing, an 8-point American Football headwind in Q2, and a 1-point FX tailwind if rates stay unchanged.

Andrew Wilson framed the quarter as evidence that EA’s strategy is compounding, citing massive online communities in Global Football, American Football, the Sims, Apex and Battlefield. He said the company is entering what he called the most exciting release cycle in EA’s history, with Battlefield 6, EA SPORTS FC, Madden NFL, NHL and skate. all positioned as major drivers. His tone was upbeat and confident, emphasizing deeper player engagement, stronger retention and a move toward community-led, creator-driven experiences.

Stuart Canfield said Q1 outperformance came from continued execution across Global Football, Star Wars and Apex Legends, and reiterated that EA is well positioned for the back half of FY26. He cited Q1 net bookings of $1.3 billion, revenue of $1.67 billion, gross margin of 83.3%, EPS of $0.79, operating cash flow of $17 million, trailing-12-month operating cash flow of $1.98 billion, free cash flow of $1.75 billion, and $423 million returned to shareholders. For Q2, he called out the FC deluxe content phasing impact, tougher College Football comparisons, Battlefield-driven marketing expense growth, and said operating expenses will be up mid-single digits in Q2 and up 3% to 4% in the quarter versus last year on a GAAP basis.

Analysts focused on pricing, Apex momentum, FC cohort spending, Battlefield marketing and launch timing, American Football ecosystem dynamics, and mobile App Store changes. Management said there are no planned pricing changes this fiscal year, Apex improved by 2 points versus initial expectations and is now better positioned, and FC is seeing strong retention and cohort spending with more localized and value-added features. On Battlefield, EA said it is spending more behind this title than any prior Battlefield and that marketing and launch investment will be more front-loaded into Q2 and continue into Q3 and beyond.