Electronic Arts Reports Strong Start to Fiscal Year 2026
Highlights
- Net bookings: $1.3 billion (+3% YoY)
- Full game net bookings: $214 million (+27% YoY)
- Gross margin: 83.3%
- Operating cash flow: $17 million
- Trailing 12-month operating cash flow: $1.98 billion
- Free cash flow: $1.75 billion
- Earnings per share: $0.79
Electronic Arts (EA), a titan in the gaming industry, has kicked off its fiscal year 2026 with encouraging results. For the first quarter, EA posted net bookings of $1.3 billion, marking a 3% increase year-over-year, and easily surpassing the high end of its guidance.
EA SPORTS and Franchise Performance
The company's diverse portfolio saw significant contributions from its EA SPORTS division, particularly its Global Football sector. Net bookings for Global Football increased by mid-single digits, benefiting from strong engagement and innovative player mechanics. The performance of FC Mobile stands out with over 50 million installs, emphasizing EA's strategic success in expanding the reach and engagement of its sports content across mobile platforms.
In the full games segment, net bookings surged by 27% to $214 million, driven by solid performances from both Split Fiction and a resurgence in Star Wars Battlefront II. Meanwhile, live services net bookings, although slightly down by 1%, reflect a resilient engagement with core franchises like Global Football.
Financial Metrics and Cash Returns
EA's financial results demonstrated robust health, with a 1% increase in net revenue to $1.67 billion and a gross margin of 83.3%. While there was a slight dip in gross margin due to royalty obligations from top-performing titles, EA maintains strong profitability.
Operating cash flow during the quarter reached $17 million, contributing to a trailing 12-month figure of $1.98 billion and a robust free cash flow of $1.75 billion. In Q1, EA returned $423 million to shareholders through buybacks and dividends, reaffirming its commitment to shareholder value.
Key Takeaways
The early fiscal year success underscores EA's strategic focus on growing their major franchises while innovating in mobile and live services segments. With a strong pipeline of upcoming game launches, including highly anticipated titles such as Battlefield 6 and skate., EA remains well-positioned for sustained growth.