Electronic Arts Q1 FY26 slides: 3% net bookings growth amid mixed platform performance

Electronic Arts Inc. (NASDAQ:EA) reported modest growth in its first quarter of fiscal year 2026, with net bookings increasing 3% year-over-year to $1.3 billion, according to the company’s earnings presentation released on July 29, 2025. The gaming giant highlighted strong performance in its sports titles while projecting a decline in bookings for the upcoming quarter.

Quarterly Performance Highlights

EA delivered $1.3 billion in net bookings for Q1 FY26, representing a 3% increase compared to the same period last year. The company reported GAAP earnings per share of $0.79 and operating cash flow of $17 million, significantly down from $120 million in Q1 FY25.

The company’s sports portfolio showed particular strength during the quarter, with EA SPORTS F1 25 delivering year-over-year net bookings growth and Global Football achieving record quarterly results in FC Mobile.

As shown in the following quarterly net bookings breakdown, full game sales grew substantially while live services remained relatively flat:

Full game net bookings increased 27% year-over-year to $214 million, while live services and other bookings declined slightly by 1% to $1.08 billion. Live services continue to represent the majority of EA’s business, accounting for 72% of trailing twelve-month net bookings.

When examining performance by platform, the results show mixed trends across EA’s distribution channels:

PC & Other platform bookings grew 8% year-over-year to $320 million, while Mobile saw a modest 2% increase to $690 million. Console bookings declined slightly by 1% to $288 million compared to the prior year.

Product Pipeline and Strategic Direction

Electronic Arts highlighted its upcoming title slate, which includes several major sports franchise releases in the second quarter of fiscal 2026. The company’s product roadmap shows a strong emphasis on its core sports franchises alongside anticipated titles like Battlefield 6.

The following image illustrates EA’s core business focus areas and upcoming releases:

Key Q2 releases include EA SPORTS College Football 26 (July 10), EA SPORTS Madden NFL 26 (August 14), EA SPORTS NHL 26, and EA SPORTS FC 26 (September 26). Looking further ahead, the company plans to release skate. and Battlefield 6 later in the fiscal year.

Financial Outlook

Despite the modest growth in Q1, EA’s guidance for Q2 FY26 indicates an expected decline in performance compared to the prior year. The company projects Q2 net bookings between $1.8 billion and $1.9 billion, representing a 9-13% decrease from Q2 FY25’s $2.08 billion.

The detailed financial guidance shows EA’s expectations across key metrics:

For the full fiscal year 2026, EA maintains a more optimistic outlook, projecting net bookings between $7.6 billion and $8.0 billion, which would represent 3-9% growth over FY25. The company expects GAAP EPS between $3.09 and $3.79 and operating cash flow between $2.2 billion and $2.4 billion.

Cash Flow and Capital Return

EA’s cash flow metrics showed some weakness in the quarter, with operating cash flow declining to $17 million from $120 million in the prior year. However, trailing twelve-month free cash flow remained robust at $1.75 billion.

The following cash flow data highlights the quarterly and trailing twelve-month performance:

The company emphasized its capital return program, noting that trailing twelve-month return on capital reached $2.7 billion through stock repurchases and cash dividends.

Currency Impact and Reconciliation

EA provided detailed reconciliation of its constant currency performance to account for foreign exchange fluctuations. The analysis shows minimal currency impact on Q1 results:

When adjusting for currency effects, EA’s net bookings growth rate remained at 3% year-over-year for Q1 FY26. Full game bookings showed particularly strong performance at 28% growth on a constant currency basis.

Market Context

Electronic Arts’ stock has performed well over the past year, trading near the upper end of its 52-week range of $115.21 to $203.75. The company’s modest growth in Q1 FY26 follows a challenging Q1 FY25, when EA missed earnings expectations significantly.

The projected decline in Q2 FY26 bookings raises some concerns, particularly as the company will be launching several major titles during this period. However, management appears confident in the full-year outlook, maintaining guidance for overall growth in FY26.

As the gaming industry continues to evolve, EA’s strategy of building "massive online communities" around its core franchises and balancing full game sales with live services will be crucial to its long-term success. The upcoming releases of College Football 26, Madden NFL 26, and FC 26 will be important indicators of the company’s ability to execute on its sports-focused strategy.

Full presentation:

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