The latest quarterly report of Electronic Arts Inc. (NASDAQ: EA) delivered a mixed bag for investors, marked by strong franchise momentum and pressure on profitability due to acquisition-related costs and aggressive R&D. While the gaming giant’s net bookings surged, fueled by the landmark launch of Battlefield 6 and double-digit growth in Apex Legends, net income declined sharply. The report comes as the company is in the process of being acquired by an investor consortium.
Stock Dips
The company’s stock moved up soon after the earnings announcement on Tuesday evening, but reversed course in the following session to trade lower. Shares have remained largely range-bound near the $200 level over the past four months, effectively anchored by the pending acquisition. That follows a strong year for the publisher, in which the stock surged over 60% to reach an all-time high in late December.
Third-quarter revenue increased modestly to $1.9 billion from $1.88 billion in the corresponding period last year. Segment-wise, Full Game increased 5.5% YoY to $632 million, while Live Services and Other revenue declined 1% to $1.27 billion. At $3.046 billion, net bookings were up 38% year-over-year, and above analysts’ consensus estimates. Net income decreased to $88 million or $0.35 per share in Q3 from $293 million or $1.11 per share in the prior-year quarter. The weak bottom-line performance mainly reflects a 22% increase in operating expense.
Dividend
Net cash provided by operating activities was $1.826 billion for the quarter and $2.522 billion for the trailing twelve months. The company declared a quarterly cash dividend of $0.19 per share, payable on March 18, 2026, to stockholders of record as of the close of business on February 25, 2026. The management did not provide its forward-looking guidance due to the pending acquisition.
In 2025, Battlefield-6 emerged as the top-selling shooter title, setting new franchise engagement records. During the quarter, EA SPORTS FC net bookings increased in high single digits year-over-year, excluding the benefit of deluxe edition content timing. Apex Legends bookings were up double-digits.
Acquisition
Last year, the company signed an agreement to be acquired by an investor consortium comprised of The Public Investment Fund, private investment funds affiliated with Silver Lake Group, and private investment funds affiliated with Affinity Partners. The all-cash deal values Electronic Arts at approximately $55 billion. The transaction is expected to close in the first quarter of fiscal 2027.
The average price of Electronic Arts’ stock for the past 12 months is $169.34. On Wednesday, EA was trading down 2% in the afternoon.
