Electronic Arts (EA) reported its Q2 calendar year results (Q1 FY26) on July 29. Revenue exceeded expectations, with sales up 32.4% year-over-year to $1.67 billion; however, operating margin fell to 16% from 28% last year.
Net bookings for the quarter totaled $1.298 billion, exceeding the high end of the guidance range of $1.275 billion. However, the outlook for the next quarter is below analyst expectations at around $1,8 billion, compared to over $2 billion.
In a press release, the company highlighted strong performances this quarter from EA SPORTS, Apex Legends, and the catalog, with Global Football and EA SPORTS F1 25 also delivering growth.
Andrew Wilson, CEO of EA, commented on the results, “We delivered a strong start to FY26, outperforming expectations ahead of what will be the most exciting launch slate in EA’s history.”
“From deepening player engagement in EA SPORTS to gearing up for Battlefield 6 and skate, we’re scaling our global communities and continuing to shape the future of interactive entertainment.”
Good Results This Quarter Retain Confidence
The company’s GAAP earnings per share for the quarter came in at $0.79, around 23% higher than analyst expectations of $0.63 per share. As a result, EA declared a quarterly cash dividend of $0.19 per share, payable to shareholders on September 17.
“We exceeded the high end of our guidance in Q1, highlighting the resilience of our live services and the breadth of our portfolio,” said company CFO Stuart Canfield. “With strong fundamentals and a robust pipeline ahead, we remain confident in our full-year guidance and long-term margin framework.”
The company reconfirmed its revenue guidance for the full year of $7.3 billion. Earlier this year, EA laid off between 300 and 400 staff, citing “long-term strategic priorities” and “future growth.”
Next Quarter Sales Expected To Drop Amid Delayed Launches
EA is preparing to launch a series of titles, including EA SPORTS College Football 26, Madden NFL 26, NHL 26, and EA SPORTS FC 26. Marketing spend on preparing for the launches contributed to a fall in operating margins to 16% from 28% last year in this quarter.
The delayed release of several titles means figures will be skewed towards the back half of the year. EA’s net bookings forecast of $1.8 to $1.9 billion is around 6% below Wall Street’s expectations of $2.01 billion. The forecasted figures would be a 13% drop in sales from the same quarter last year.
The company noted that it “expects a more normalized curve for College Football full game sales, partially offset by the launch of Madden NFL 26. Expectations are that early momentum in Apex Legends and catalog continues.”
Canfield remained confident that upcoming releases will make up for the short-term drop. The release of EA SPORTS FC26 will be reflected in Q4 of 2025 (FY26 Q3). Meanwhile, EA released the trailer for Battlefield 6 this week, with the title expected to drop in Q1 next year.
For the fiscal year 2026, net income is expected to be between $795 million and $974 million.
