Electronic Arts FY2026 Q1 Earnings Release

July 29, 2025

Electronic Arts Inc.

Q1 FY26 Results

01

Safe Harbor Statement

02

Select Q1FY26 Highlights

03

Net Bookings Results

04

Core Business and FY26 Title Slate

05

Q1 FY26 Actuals, FY26 & Q2 Guidance

Table of Contents

2

06

GAAP to Non-GAAP Reconciliation

07

Appendix

2

Some statements set forth in this document, including the information relating to EA’s fiscal 2026 guidance information and title slate contain

forward-looking statements that are subject to change. Statements including words such as “anticipate,” “believe,” “expect,” “intend,” “estimate,” “plan,”

“predict,” “seek,” “goal,” “will,” “may,” “likely,” “should,” “could” (and the negative of any of these terms), “future” and similar expressions also identify

forward-looking statements. These forward-looking statements are not guarantees of future performance and reflect management’s current expectations.

Our actual results could differ materially from those discussed in the forward-looking statements. Some of the factors which could cause the Company’s

results to differ materially from its expectations include the following: sales of the Company’s products and services; the Company’s ability to develop and

support digital products and services, including managing online security and privacy; outages of our products, services and technological infrastructure; the

Company’s ability to manage expenses; the competition in the interactive entertainment industry; governmental regulations; the effectiveness of the

Company’s sales and marketing programs; timely development and release of the Company’s products and services; the Company’s ability to realize the

anticipated benefits of, and integrate, acquisitions; the consumer demand for, and the availability of an adequate supply of console hardware units; the

Company’s ability to predict consumer preferences and trends; the Company’s ability to develop and implement new technology; foreign currency exchange

rate fluctuations; economic and geopolitical conditions; changes in our tax rates or tax laws; and other factors described in Part I, Item 1A of Electronic Arts’

latest Annual Report on Form 10-K under the heading “Risk Factors”, as well as in other documents we have filed with the Securities and Exchange

Commission.

These forward-looking statements are current as of July 29, 2025. Electronic Arts assumes no obligation to revise or update any forward-looking statement

except as required by law. In addition, the preliminary financial results set forth herein are estimates based on information currently available to Electronic

Arts.

While Electronic Arts believes these estimates are meaningful, they could differ from the actual amounts that Electronic Arts ultimately reports in its

Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2025. Electronic Arts assumes no obligation and does not intend to update these

estimates prior to filing its Form 10-Q for the fiscal quarter ended June 30, 2025.

3

Please review our risk factors on Form 10-K filed with the SEC

Safe Harbor Statement

Refer to Appendix for additional disclosures.

Refer to Appendix for additional disclosures.

4

EA SPORTS™ F1® 25

delivered strong

year-over-year net
bookings

growth, supported by an

enhanced gameplay

experience

Global Football
delivered

year-over-year growth in
net

bookings, highlighted by a

record quarter in FC Mobile

net bookings

Live Services

represented 72%
of total

TTM net bookings

$1.8B

TTM Free Cash Flow

$2.7B

TTM Return on Capital

(through Stock Repurchase Program

& Cash Dividends)

$7.4B

TTM net bookings

Select Q1 FY26 Highlights

(in $ millions)

Net Bookings by Composition

Quarterly

Refer to Appendix for additional disclosures, including constant currency (“CC”).

Full Game

Live services and other

Trailing 12 Months

5

Q1FY24

Q1FY25

Q1FY26

YoY

YoY CC

YoY

Q1FY24

Q1FY25

Q1FY26

1,177

401

1,578

1,094

168

1,262

1,298

1,084

214

5,573

2,047

7,620

5,342

1,772

7,114

5,328

2,063

7,391

+3%

(1%)

+27%

+3%

(1%)

+28%

0%

+16%

+4%

YoY

(in $ millions)

Net Bookings by Platform

Refer to Appendix for additional disclosures, including constant currency (“CC”).

Console

PC & Other

Mobile

6

Quarterly

Trailing 12 Months

Q1FY24

Q1FY25

Q1FY26

Q1FY24

Q1FY25

Q1FY26

YoY

YoY CC

901

374

1,578

677

295

1,262

690

320

1,298

303

290

288

4,602

1,785

7,620

4,390

1,550

7,114

4,758

1,487

7,391

1,233

1,174

1,146

+2%

+8%

+3%

(1%)

+1%

+9%

+3%

(1%)

+8%

(4%)

+4%

(2%)

Massive Online Communities

New Releases in FY26

Core Business and FY26 Title Slate

7

Q1

EA SPORTS™ F1® 25
(May 30)

EA SPORTS™ College Football 26
(July 10)

EA SPORTS™ Madden NFL 26
(August 14)

EA SPORTS™ NHL 26

EA SPORTS FC™ 26
(September 26)

Q2

Q3

Q4

skate.

Battlefield 6

FY

(in $ millions, except EPS)

Q1 FY26 Actuals, FY26 & Q2 Guidance

8

Refer to Appendix for additional disclosures.

Q1 FY26A

FY26E

Q2 FY26E

Net Revenue

1,671

7,100 to 7,500

1,750 to 1,850

Cost of Revenue

279

1,475 to 1,515

430 to 450

GAAP EPS

$0.79

$3.09 to $3.79

$0.29 to $0.46

Operating Cash Flow

17

2,200 to 2,400

GAAP Operating Margin

16.2%

16.3% to 18.9%

Non-GAAP Operating Margin

26.9%

27.2% to 29.2%

Impact of GAAP Deferrals

(2,100) bps

480 bps to 440 bps

Note: Our EPS guidance calculation does not factor in future stock repurchases.

Non-GAAP Operating Margin calculated as a % of GAAP Net Revenue.

Net Bookings

1,298

7,600 to 8,000

1,800 to 1,900

(in $ millions)

GAAP to Non-GAAP Reconciliation: Q1 FY26 Actuals

1
The Company uses a tax rate of 19% internally to evaluate its operating performance and to forecast , plan and analyze future periods.

9

Three Months Ended June 30, 2025

GAAP-Based Financial Data

GAAP-Based

Financial Data

A

Statement of

Operations

B

Acquisition-related

expenses

C

Restructuring

and related

charges

D

Stock-based

compensation

=A+B+C+D

Non-GAAP

Change in deferred

net revenue (online-

enabled games)

Net revenue

1,671

–

–

–

1,671

(373)

Cost of revenue

279

(10)

–

(3)

266

–

Operating expense

1,121

(17)

–

(149)

955

–

Operating margin

16.2%

160 bps

–

910 bps

26.9%

(2,100) bps

Income before provision for income taxes

273

27

–

152

452

(373)

Net income
1

201

Number of shares used in computation:

Diluted shares

254

Refer to Appendix for additional disclosures.

(in $ millions)

GAAP to Non-GAAP Reconciliation: FY26 Guidance

1
The mid-point of the range has been used for purposes of presenting reconciling items to operating margin.

2
The Company uses a tax rate of 19% internally to evaluate its operating performance and to forecast , plan and analyze future periods.

10

Refer to Appendix for additional disclosures.

Twelve Months Ending March 31, 2026

GAAP-Based Financial Data

GAAP-Based

Financial Data

A

GAAP Guidance

Range

B

Acquisition-

related expenses

C

Stock-based

compensation

=A+B+C

Non-GAAP

Guidance Range

Change in deferred net revenue

(online-enabled games)

Net revenue

7,100 to 7,500

–

–

7,100 to 7,500

500

Cost of revenue

1,475 to 1,515

(40)

(15)

1,420 to 1,460

–

Operating expense

4,470 to 4,570

(70)

(650)

3,750 to 3,850

–

Operating margin
1

16.3% to 18.9%

150 bps

910 bps

27.2% to 29.2%

480 bps to 440 bps

Income before provision for income taxes

1,136 to 1,391

110

665

1,911 to 2,166

500

Net income
2

795 to 974

Number of shares used in computation:

Diluted shares

257

(in $ millions)

Q2 FY26 Guidance

1
The Company uses a tax rate of 19% internally to evaluate its operating performance and to forecast , plan and analyze future periods.

11

Refer to Appendix for additional disclosures.

Three Months Ending September 30, 2025

GAAP-Based Financial Data

GAAP Guidance

Range

Acquisition-related

expenses

Stock-based

compensation

Change in deferred

net revenue

(online-enabled games)

Net revenue

1,750 to 1,850

–

–

50

Cost of revenue

430 to 450

(10)

(5)

–

Operating expense

1,215 to 1,235

(20)

(170)

–

Income before provision for income taxes

104 to 167

30

175

50

Net income
1

73 to 117

Number of shares used in computation:

Diluted shares

253

01

Cash Flow Selected Data

02

Currency Assumptions

03

Constant Currency Reconciliation

04

Additional Disclosures

Appendix

12

05

Non-GAAP Financial Measures

12

(in $ millions)

Cash Flow Selected Data

13

Free cash flow is defined as operating cash flow minus capital expenditures.

Management believes free cash flow is a useful measure of the company’s ability to generate cash.

Actuals

Q1 2026

Q1 2025

TTM Q1 2026

TTM Q1 2025

Operating Cash Flow

17

120

1,976

2,076

Capital Expenditures

72

67

226

221

Free Cash Flow

(55)

53

1,750

1,855

Investing Cash Flow

(89)

(69)

17

(232)

Financing Cash Flow

(568)

(546)

(2,885)

(1,688)

Currency Assumptions

Note: Our financial guidance includes the forecasted impact of the FX cash flow hedging program.

1
For FY25 Q1A and FY26 Q1A, FX rates are a simple average of EA’s actual monthly P&L rates. For FY26 Q2-Q4E, the same FX rates are used for all forecast periods.

2
For all periods, FX rates are quoted using market convention.

14

Current FX assumptions
1,2

Q1 2025

Q1 2026

Q2-Q4E 2026

Net Bookings

EUR/USD

1.08

1.12

1.16

GBP/USD

1.26

1.32

1.36

Operating Expenses

USD/CAD

1.37

1.40

1.37

USD/SEK

10.75

9.74

9.51

If the U.S. dollar strengthens 10% against the Euro and British pound sterling:

●
With hedging, total net bookings decrease ~2.0%

●
Total cost of revenue and operating expenses decrease ~2.0%

If the U.S. dollar strengthens 10% against the Canadian dollar and Swedish krona:

●
Total net bookings decrease ~0.5%

●
With hedging, total cost of revenue and operating expenses decrease ~0.5%

Rule of thumb

(in $ millions)

Constant Currency Reconciliation–Net Bookings Guidance

15

Numbers above may not foot due to rounding and calculation methodologies.

2026

As Guidance

2025

As Reported

Percentage

Change YoY

Currency

Impact

Percentage Change
YoY

Constant Currency

Low

7,600

7,355

+3%

(88)

+2%

High

8,000

7,355

+9%

(88)

+8%

Q2 2026

As Guidance

Q2 2025

As Reported

Percentage

Change YoY

Currency

Impact

Percentage Change
YoY

Constant Currency

Low

1,800

2,079

(13%)

(15)

(14%)

High

1,900

2,079

(9%)

(15)

(9%)

(in $ millions)

Constant Currency Reconciliation–Net Bookings (Q1)

16

Numbers above may not foot due to rounding and calculation methodologies.

Q1 2026

As Reported

Q1 2025

As Reported

Percentage

Change YoY

Q1 2026

Currency Impact

Percentage Change YoY

Constant Currency

Console

690

677

+2%

(4)

+1%

PC & other

320

295

+8%

2

+9%

Mobile

288

290

(1%)

1

(1%)

Net Bookings

1,298

1,262

+3%

(1)

+3%

Q1 2026

As Reported

Q1 2025

As Reported

Percentage

Change YoY

Q1 2026

Currency Impact

Percentage Change YoY

Constant Currency

Full game

214

168

+27%

0

+28%

Live services & other

1,084

1,094

(1%)

(1)

(1%)

Net Bookings

1,298

1,262

+3%

(1)

+3%

17

Additional Disclosures

Net revenue, gross profit and operating cash flow are presented on a GAAP basis.

Net bookings is an operating metric that EA defines as the net amount of products and services sold digitally or sold-in physically in the period. Net bookings is

calculated by adding total net revenue to the change in deferred net revenue for online-enabled games. A calculation of net bookings can be found in the “Net

Bookings” tab of the Financial Model provided on our IR website.

We define EA’s player network as the number of active accounts used to play EA games and services on any platform over the preceding 12 months. We determine

these operating metrics by using internal company data. We also use information provided by third parties, including third party network logins provided by platform

providers. While we believe that the operating metrics we report are reasonable estimates for the applicable period of measurement, there are inherent challenges in

measuring how our games and services are played across large global populations. For example, while we seek to remove duplicate accounts in these metrics, we do

not require players to use a common identifier or to link their accounts to play an EA game on console/ PC and an EA game on their mobile device, or to play two or

more EA games on a single mobile device. Therefore, a player that plays two of our games on a single mobile device or plays two of our games (or the same game)

across different devices may be counted as two accounts. In addition, we evaluate our systems for false accounts, which represent user profiles that we believe are

intended to be used for purposes that violate our terms of service, and remove them from our player network. From time to time, our actions may impact the

period-by-period comparability of these metrics. For example, we may change our methodology or we may implement strategic decisions with respect to certain

games and services, including sunsetting titles.

From time to time, we make comparisons of current periods to prior periods with reference to constant currency. We evaluate our performance on a constant
currency

basis in order to facilitate period-to-period comparisons without regard to the impact of changing foreign currency exchange rates. To present constant currency

information (both historical and forward-looking), the current period results are converted into United States dollars using the weighted average exchange rates from

the comparative period rather than the rates in effect. Constant currency information is presented net of the impact of our foreign exchange hedging programs.

EA, EA SPORTS, EA SPORTS FC, Battlefield, Need for Speed, Apex Legends, The Sims, Dragon Age, Titanfall, and Plants vs. Zombies are trademarks of Electronic Arts Inc.

John Madden, NFL, and F1 are the property of their respective owners and used with permission.

Forward-looking statements are valid as of July 29, 2025 only. Electronic Arts assumes no obligation to update these forward-looking statements, except required by

law.

As a supplement to the Company’s financial measures presented in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company presents

certain non-GAAP measures of financial performance, including non-GAAP operating margin, and free cash flow. These non-GAAP financial measures should not be

considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, these non-GAAP measures have

limitations in that they do not reflect all of the items associated with the Company’s results of operations as determined in accordance with GAAP. These non-GAAP

financial measures do not reflect a comprehensive system of accounting and differ from GAAP measures with the same names and may differ from non-GAAP financial

measures with the same or similar names that are used by other companies.

The non-GAAP financial measures exclude acquisition-related expenses, stock-based compensation, restructuring and related charges, and capital expenditures as

applicable in any given reporting period and our outlook. The Company may consider whether other significant items that arise in the future should be excluded from

our non-GAAP financial measures. Management believes that these non-GAAP financial measures provide investors with additional useful information to better

understand and evaluate the Company’s operating results and future prospects because they exclude certain items that may not be indicative of the Company’s core

business, operating results, or future outlook. These non-GAAP financial measures, with further adjustments, are used by management to understand ongoing financial

and business performance.

The Company uses a tax rate of 19% internally to evaluate its operating performance and to forecast, plan and analyze future periods. Accordingly, the Company
applies

the same tax rate to its management reporting financial results.

Investors are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP financial measures to their most directly comparable

GAAP financial measure.

18

Non-GAAP Financial Measures