Electronic Arts (EA) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 net revenue was $1.883 billion, down 3% year-over-year, with net bookings at $2.215 billion, down 6%, driven by underperformance in key titles but offset by strong engagement in American Football and EA SPORTS FC Mobile.

• Gross margin improved to 75.8%, up 3 percentage points year-over-year, and operating income rose 3% to $377 million, with net income at $293 million and diluted EPS of $1.11.

• Live services comprised 74% of total business on a trailing 12-month basis, though revenue and net bookings from live services declined year-over-year.

• Major updates and community engagement actions, including for EA Sports FC, improved player sentiment and reactivated users.

• Strategic acquisitions, technology investments, and the launch of Battlefield Labs and new creator kits for The Sims aim to drive innovation and future growth.

Financial highlights

• Q3 net bookings were $2.215 billion, down 6% year-over-year; net revenue was $1.883 billion, down 3%; net income was $293 million, up 1%.

• Gross margin was 75.8% for the quarter; operating margin was 20% GAAP and 30.1% non-GAAP.

• Diluted EPS was $1.11, up 4% year-over-year; operating cash flow was $1.176 billion for the quarter.

• Free cash flow for the trailing 12 months was $1.89 billion; cash and cash equivalents at quarter end were $2.776 billion.

• Returned $425 million to stockholders in Q3 through repurchases and dividends; $1.7 billion returned in the trailing twelve months.

Outlook and guidance

• FY2025 net bookings expected at $7.0–$7.15 billion, down 4–6% year-over-year; net revenue guidance is $7.25–$7.4 billion.

• FY2025 GAAP operating margin expected at 19.2–20.5%; non-GAAP at 30.5–31.6%.

• FY2025 EPS revised to $3.90–$4.25; operating cash flow guidance at $1.8–$1.9 billion.

• Q4 net bookings expected at $1.444–$1.594 billion, down 4–13% year-over-year.

• Multi-year framework targets growth resumption in FY2026, driven by new releases and franchise expansions.