ELECTRONIC ARTS (EA)·Q3 2026 Earnings Summary

EA Posts Record $3B Net Bookings on Battlefield 6 Launch, But EPS Drops 68%

February 3, 2026 · by Fintool AI Agent

Electronic Arts delivered a record-breaking quarter for net bookings—the company's preferred operating metric—reaching $3.05 billion, up 38% year-over-year, driven by Battlefield 6's landmark launch as the best-selling shooter of 2025 . However, GAAP net income plummeted 70% to $88 million and diluted EPS fell to $0.35 versus $1.11 in the prior year period . EA did not host an earnings call this quarter due to its pending $55 billion acquisition .

Did EA Beat Earnings?

EA's Q3 FY26 results present a mixed picture depending on which metric you prioritize:

The divergence between record net bookings and declining profitability stems from deferred revenue timing. Net bookings includes $1.145 billion in deferred revenue from new game launches (primarily Battlefield 6) that will be recognized in future quarters . Meanwhile, operating expenses surged—R&D up 16%, marketing and sales up 42%, and G&A up 13%—driven by the Battlefield 6 launch and acquisition-related costs .

What Drove the Record Quarter?

Three franchises powered EA's performance:

Battlefield 6 — The marquee release of the quarter. Battlefield 6 was the best-selling shooter title of 2025 and set new franchise engagement records . This drove a massive $1.145B swing in deferred revenue as players purchased the game and in-game content that will be recognized over time.

EA SPORTS FC — Net bookings increased high single digits year-over-year in Q3, excluding deluxe edition content timing benefits, driven by strength in Ultimate Team and FC Mobile .

Apex Legends — Momentum continued with net bookings up double-digits year-over-year, driven by innovative new features and events .

What Changed From Last Quarter?

The sequential improvement in net bookings reflects Battlefield 6's October launch. The decline in GAAP operating margin (from 10.9% to 6.7%) is primarily driven by launch-related marketing spend and acquisition costs—$53M in acquisition-related expenses this quarter versus $26M a year ago .

Revenue Mix: Platform and Composition

By Composition

Full game revenue grew 6% on Battlefield 6's success, while live services were flat year-over-year despite strength in FC and Apex Legends.

By Platform

PC platform surged 19% on Battlefield 6 strength, while console and mobile faced year-over-year headwinds.

How Did the Stock React?

EA shares closed at $201.39 on February 3, 2026, down 1.2% on the day . The muted reaction likely reflects:

1. Acquisition overhang — With the $55B deal expected to close in Q1 FY27, the stock trades near the implied deal price
2. Mixed signals — Record bookings offset by EPS decline
3. No forward guidance — EA withdrew guidance amid the pending transaction

The $55 Billion Elephant in the Room

On September 29, 2025, EA announced a definitive agreement to be acquired by a consortium comprising The Public Investment Fund (Saudi Arabia's sovereign wealth fund), Silver Lake, and Affinity Partners in an all-cash transaction valuing EA at approximately $55 billion enterprise value . The transaction is expected to close in Q1 FY27 (April-June 2026) and is subject to regulatory approvals.

Key implications:

• No earnings call this quarter — management is not providing forward commentary
• Stock buybacks paused — no repurchases in Q3 vs $375M in Q3 FY25
• Dividend maintained — $0.19 quarterly dividend declared, payable March 18, 2026

Cash Flow and Balance Sheet

EA generated strong cash flow despite the earnings decline:

Operating cash flow surged 55% year-over-year to $1.83B, driven by the $1.16B increase in deferred revenue from game launches.

The $790M increase in deferred revenue (from $1.7B to $2.49B) represents future revenue from Battlefield 6 and other game launches that will be recognized over time.

Historical EPS Trend

EPS has declined for three consecutive quarters as EA invested heavily in the Battlefield 6 launch and incurred acquisition-related costs. The earnings trajectory will normalize as deferred revenue from the record bookings quarter is recognized.

Key Risks and Considerations

1. Acquisition uncertainty — Regulatory approvals still pending; any delay or failure to close would significantly impact the stock
2. Margin pressure — GAAP operating margin declined to 6.7% from 20.0% a year ago
3. Integration risks — Post-close execution under new ownership remains uncertain
4. Live services dependency — 67% of revenue from live services; any engagement decline would be material

Forward Catalysts

• Q1 FY27 deal close (expected April-June 2026) — The consortium's $55B acquisition is the primary catalyst
• Battlefield 6 revenue recognition — Deferred revenue unwind will boost reported earnings in coming quarters
• Title slate — skate. and additional titles in development for future launch

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Electronic Arts reported Q3 FY26 results on February 3, 2026. The company did not host an earnings call due to its pending acquisition. For more details, see EA's 8-K filing and investor relations website.