Electronic Arts' December-quarter operating income falls 66% to $127 million while net bookings rise 38% to $3.05 billion

Written by Claude Sonnet 5.5, an AI model, from public records. Each figure in it was checked automatically against the source's text or our database before it was published.

Electronic Arts filed its quarterly report on Form 10-Q, the quarterly financial report a US-listed company gives the SEC, on Feb 3, 2026, for its third fiscal quarter, which ended Dec 31, 2025. Net revenue was $1.9 billion, up 1.0% from $1.88 billion in the same quarter a year earlier. Operating income was $127 million, down 66.3% from $377 million. Net income was $88 million, against $293 million, and diluted earnings per share were $0.35, against $1.11.1^,2^,3^,4^,5^,6^,7^,8^,9^,10^,11^,12^,13^,14

The company's own operating metric, net bookings, was $3,046 million, up $831 million, or 38%. Net bookings are net revenue plus the change in deferred net revenue for online-enabled games, so they are not revenue. The company ties the rise to the release of Battlefield 6 and higher global football sales, partly offset by a decrease from the prior year's release of Dragon Age: The Veilguard. The 10-Q says net revenue rose $18 million, driven by a $264 million increase mainly from Battlefield 6, partly offset by a $246 million decrease mainly from last year's Dragon Age: The Veilguard, the American football and global football franchises and lower extra content sales for Apex Legends. Full game net revenue rose 6% on Battlefield 6, while live services and other net revenue fell 1%, as lower extra content sales for Apex Legends and The Sims 4 were partly offset by Battlefield 6.15^,16^,17^,18^,19^,20^,21

Operating expenses were $1,276 million, up 22%. Marketing and sales expenses rose 42%, mainly on advertising for Battlefield 6, and research and development expenses rose 16%, mainly on personnel costs that include variable compensation. General and administrative expenses rose 13%, with $27 million of fees and other direct expenses tied to the merger described below.22^,23^,24^,25

EA entered into a merger agreement on Sep 28, 2025, under which a consortium is to acquire it, the 10-Q says. The company's earnings release, which dates the announcement Sep 29, names The Public Investment Fund and funds affiliated with Silver Lake and Affinity Partners as the consortium, and says the all-cash transaction values EA at an enterprise value of approximately $55 billion, meaning the shares plus debt, less cash. In that earnings release the company said it expected the deal to close in the first quarter of fiscal 2027, subject to customary closing conditions including required regulatory approvals, and that it would not host an earnings call for the quarter because of the pending transaction.26^,27^,28^,29^,30

Our records hold the text of this filing's management discussion and analysis (39 subsections) and nothing else of it; the merger terms above come from the company's earnings release and that discussion.31