Financial Data and Key Metrics Changes - The company reported net bookings of $1.3 billion, up 3% year-over-year, exceeding the high end of guidance [19] - Full game net bookings were $214 million, up 27%, driven by ongoing momentum from Split Fiction and a resurgence in Star Wars Battlefront II [20] - Live services net bookings were $1.08 billion, down 1%, with growth in the low single digits when excluding Apex Legends [20][24] Business Line Data and Key Metrics Changes - The EA Sports business showed strong performance, with net bookings in global football growing mid-single digits year-over-year [21] - FC Mobile outperformed expectations with over 50 million installs and significant daily active user growth [9] - Apex Legends delivered flat sequential net bookings, with improved engagement trends particularly among new and casual players [23] Market Data and Key Metrics Changes - The company is seeing deeper engagement in its core franchises, particularly in global football and American football ecosystems [12][17] - The integration of real-world sports content into games, such as Apple's MLS season pass into FC Mobile, is enhancing player engagement [9] Company Strategy and Development Direction - The company is entering an exciting release cycle, with major titles like Battlefield 6 and continued innovation in EA Sports franchises [8][29] - A community-centric approach is being emphasized, focusing on deeper engagement and value for players over time [26][30] - The strategy includes building massive online communities and expanding the reach of franchises across geographies and platforms [17][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver against FY 2026 outlook, supported by strong momentum and a compelling slate of upcoming launches [19][29] - The company is encouraged by strong retention and positive player sentiment, particularly for upcoming titles [27][29] Other Important Information - The company returned $423 million to shareholders through buybacks and dividends during the quarter [24] - The upcoming launches are expected to deepen player engagement and expand the audience [29] Q&A Session Summary Question: Thoughts on full game pricing - Management stated no changes in pricing strategy are planned, maintaining a broad pricing scheme across products [36][37] Question: Life Services growth excluding Apex - Live services growth outside of Apex was reported as low single digits, with expectations for continued momentum [42] Question: Cohort spending and Ultimate Team - Strong pickup in cohort spending was noted, with ongoing focus on enhancing player engagement through various modes [46] Question: Competitive setup between Battlefield and Call of Duty - Management feels confident about Battlefield's competitive position and has invested significantly in its marketing [65] Question: Consumer receptivity to bundling Madden and NCAA - The dual purchase strategy has been successful, and management expects continued positive reception [75] Question: Mobile opportunity post-App Store changes - The company aims to create frictionless experiences for players while exploring new monetization opportunities [90][92]

Financial Data and Key Metrics Changes - The company reported net bookings of $1.3 billion, up 3% year-over-year, exceeding the high end of guidance [19] - Full game net bookings were $214 million, up 27%, driven by ongoing momentum from Split Fiction and a resurgence in Star Wars Battlefront II [20] - Live services net bookings were $1.08 billion, down 1%, but excluding Apex Legends, live services grew in the low single digits [20][21] - Net revenue was $1.67 billion, up 1%, with a gross margin of 83.3%, down 90 basis points [23] - Operating expenses increased by 9% to $1.12 billion, primarily due to increased personnel costs [23] Business Line Data and Key Metrics Changes - The EA Sports business showed strong performance, particularly in global football, with net bookings growing mid-single digits year-over-year [21] - FC Mobile outperformed expectations with over 50 million installs and significant daily active user growth [8] - Apex Legends maintained flat net bookings sequentially, driven by strong operational execution and content innovation [22] - The American football ecosystem demonstrated strength with sustained engagement across Madden NFL and college football, with College Football '26 receiving strong reviews [11][12] Market Data and Key Metrics Changes - The company is seeing deeper engagement in its core franchises, particularly in global football and American football, with a focus on community-centric strategies [9][10] - The integration of real-world sports content into games, such as the partnership with Apple for FC Mobile, is enhancing player engagement [8][10] Company Strategy and Development Direction - The company is entering an exciting release cycle, with anticipated launches for Battlefield 6, Madden NFL 26, and FC 26, aiming to deepen player engagement and expand audiences [7][29] - The strategy focuses on building massive online communities and enhancing player experiences through innovative gameplay and community-driven content [17][30] - The company is committed to a community-centric approach, aiming to deliver long-term value for players and adapt to their feedback [9][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver against FY 2026 outlook, citing strong momentum and a compelling slate of upcoming launches [19][29] - The company anticipates a challenging comparison for College Football '26 due to last year's strong launch but remains optimistic about retention and player sentiment [26][27] - Management highlighted the importance of competition in driving innovation and improving offerings across franchises [68] Other Important Information - The company returned $423 million to shareholders through buybacks and dividends during the quarter [23] - The upcoming Battlefield 6 reveal is expected to generate significant excitement and engagement from the community [15][56] Q&A Session Summary Question: Thoughts on full game pricing strategy - Management indicated no immediate changes to pricing strategy, emphasizing a broad pricing scheme to capture the full spectrum of player value [36][37] Question: Life Services growth excluding Apex - Life Services growth outside of Apex was reported as low single digits, with expectations for continued momentum [41][43] Question: Marketing strategy for Battlefield - The company is investing heavily in marketing Battlefield 6, aiming to build it as a platform rather than just a product [56][57] Question: Competitive landscape between Battlefield and Call of Duty - Management feels confident about Battlefield's competitive positioning and the expectations of fans [63][66] Question: Consumer receptivity to bundling Madden and NCAA - The dual purchase strategy for Madden and NCAA is expected to continue being well received, with a vision for deeper connections between the two experiences [72][74] Question: Mobile opportunity post-App Store changes - The company is focused on creating frictionless experiences for players on mobile platforms, adapting to new economic opportunities [88][90]

Core Insights - Electronic Arts reported first-quarter net bookings of $1.298 billion, exceeding the consensus estimate of $1.25 billion, driven by strong performance across its game portfolio [2][3] - The company achieved net revenue of $1.671 billion and earnings per share of 79 cents for the quarter [3] - CEO Andrew Wilson expressed confidence in the company's performance, highlighting an exciting launch slate for FY26 [4] Financial Performance - First-quarter net bookings: $1.298 billion, surpassing expectations [2] - First-quarter net revenue: $1.671 billion [3] - Earnings per share for the quarter: 79 cents [3] Future Guidance - Full-year 2026 guidance for net bookings is projected between $7.60 billion and $8.00 billion, with net revenue expected between $7.10 billion and $7.50 billion [5] - Diluted earnings per share for the full year are anticipated to be in the range of $3.09 to $3.79 [5] - For the second quarter, net bookings are expected to be between $1.80 billion and $1.90 billion, with net revenue projected between $1.75 billion and $1.85 billion [6] Upcoming Titles and Strategy - The company is focusing on upcoming titles such as Madden NFL 26, Battlefield, and Skate, which are expected to drive future growth [6][7] - CFO Stuart Canfield emphasized the strong fundamentals and robust pipeline, reinforcing confidence in the full-year guidance and long-term margin framework [7]

Core Insights - Electronic Arts (EA) reported a 6.52% year-over-year increase in net revenue for Q4 FY2025, reaching $1.895 billion, surpassing analyst expectations of $1.55 billion, with a net profit of $254 million, up 39.56% [1] - The company's total net revenue for FY2025 was $7.463 billion, a slight decline of 1.31% from $7.562 billion in the previous year, with game business revenue at $2.002 billion and live services and others at $5.461 billion [1] - EA's new game "Split Fiction" sold over 1 million copies within 48 hours of its release and has surpassed 4 million copies globally [1] Financial Performance - For Q4 FY2025, EA's revenue growth was primarily driven by its gaming business, particularly the EA SPORTS series, which saw its American Football game surpass $1 billion in net bookings for the first time [1] - The latest installment of "The Sims" maintained double-digit growth in its 25th anniversary quarter, contributing to the overall revenue increase [1] Future Outlook - EA anticipates total bookings for FY2026 to be between $7.6 billion and $8 billion, with growth expected from EA SPORTS, "The Sims," and new titles from "Battlefield" and "Skate" [4] - The company projects operating cash flow of $2.2 billion to $2.4 billion and net revenue between $7.1 billion and $7.5 billion for FY2026, with Q1 estimates at $1.55 billion to $1.65 billion [4] Strategic Changes - EA plans to release a new "Battlefield" game before April 2026, with a full reveal expected this summer, which is seen as a key step in creating the next generation of entertainment [2] - The company is undergoing layoffs of 300-400 positions, including around 100 from Respawn Entertainment, and has canceled two projects, including a new "Titanfall" title, to focus resources on the next "Jedi" game and updates for "Apex Legends" [4]