Electronic Arts Q2 Earnings and Revenues Decline Year Over Year

Core Insights - Electronic Arts (EA) reported a significant decline in earnings and revenues for the second quarter of fiscal 2026, with earnings per share at $1.21, down 43.7% year over year, and revenues at $1.84 billion, a decrease of 9.2% year over year [1][8] Financial Performance - Net bookings for the fiscal second quarter totaled $1.82 billion, down 12.6% year over year, with full-game net bookings at $700 million, a decline of 15.9% year over year, and live services net bookings at $1.12 billion, down 10.3% year over year [2] - Full-game revenues, accounting for 33.6% of total revenues, decreased 13.7% year over year to $618 million, with full-game download revenues down 15.6% to $401 million and packaged goods revenues falling 10% to $217 million [3] - Live services and other revenues, making up 66.4% of total revenues, decreased 6.7% year over year to $1.22 billion [3] Revenue Breakdown - Revenues from consoles declined 11.8% year over year to $1.21 billion, while revenues from PC & Other decreased 3.3% to $352 million, and mobile platform revenues fell 4.2% to $275 million [4] Operating Metrics - GAAP gross profit decreased 11% year over year to $1.4 billion, with gross margin contracting by 200 basis points to 75.9% [5] - Operating expenses increased 0.9% year over year to $1.2 billion, rising as a percentage of revenues from 58.5% to 65% [5] - GAAP operating income decreased 47.9% year over year to $200 million, with the operating margin contracting from 19% to 10.9% [6] Balance Sheet and Cash Flow - As of September 30, 2025, EA had $1.26 billion in cash and short-term investments, down from $1.63 billion as of June 30, 2025 [7] - Net cash provided by operating activities was $130 million for the quarter and $1.87 billion for the trailing twelve months [7] - EA repurchased 2.3 million shares for $375 million during the quarter, totaling 17.5 million shares for $2.5 billion over the trailing twelve months [7] Dividend and Acquisition - The company declared a quarterly cash dividend of 19 cents per share, payable on December 23, 2025, to stockholders of record as of December 3, 2025 [8] - EA announced a definitive agreement for acquisition by an investor consortium in an all-cash transaction valued at approximately $55 billion, pending regulatory and shareholder approval [9]