Electronic Arts Logs 38% Net Bookings Surge but Q3 Profit Slumps
Electronic Arts reported Q3 net bookings of $3.046 billion, up 38% year-over-year, and net revenue of $1.901 billion, while net income dropped to $88 million from $293 million a year ago. The company declared a $0.19 per share dividend and reiterated its pending $55 billion acquisition closing in fiscal 2027’s first quarter.
1. Record Net Bookings Driven by Battlefield 6
Electronic Arts delivered net bookings of $3.046 billion in its third fiscal quarter ended December 31, 2025, a 38% increase year-over-year and the highest level in company history. The blockbuster launch of Battlefield™ 6 was the primary driver, making it the best-selling shooter title of 2025 and setting new franchise engagement records. EA SPORTS FC™ also contributed, with net bookings up high single digits excluding the timing benefit of deluxe edition content. Apex Legends™ sustained momentum, posting double-digit growth in net bookings driven by new in-game features and live events.
2. Margins Pressure Despite Revenue Growth
Net revenue for the quarter rose modestly to $1.901 billion, compared with $1.883 billion in the prior year period. Higher investment in research and development and marketing pushed operating expenses to $1.276 billion, up from $1.050 billion a year ago. As a result, operating income declined to $127 million from $377 million, and net income fell to $88 million from $293 million. Diluted earnings per share slipped to $0.35 from $1.11, reflecting elevated costs associated with new game development and global marketing campaigns.
3. Robust Cash Generation and Shareholder Returns
Operating cash flow surged to $1.826 billion for the quarter, compared with $1.176 billion in the same period last year, driven by strong live-service bookings and deferred revenue recognition. Trailing twelve-month operating cash flow reached $2.522 billion. The board declared a quarterly cash dividend of $0.19 per share, payable on March 18, 2026 to shareholders of record as of February 25, 2026. The company repurchased no shares during the quarter but has authorized share repurchases totaling $2.125 billion over the past twelve months.
4. Pending Acquisition Valued at $55 Billion
On September 29, 2025, EA entered into a definitive agreement to be acquired by a consortium led by the Public Investment Fund, Silver Lake Group and Affinity Partners in an all-cash transaction valuing the company at approximately $55 billion enterprise value. The deal is expected to close in the first quarter of fiscal 2027, subject to regulatory approvals. Given the pending transaction, EA did not host an earnings conference call this quarter, and management highlighted that execution risk remains linked to approval timing and integration planning.