Full Game Revenue Driven by Battlefield 6
Full game net revenue surged 78% to $514 million, primarily due to the release of Battlefield 6, which more than offset lower sales from Split Fiction.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Electronic Arts delivered robust revenue and profit growth in Q1 FY2027, fueled by the successful launch of Battlefield 6 and sustained strength in live services from EA SPORTS FC and Apex Legends. Operating income nearly doubled, driven by a favorable mix shift toward higher-margin digital sales and lower royalty costs, which lifted gross margin to 86.2%. However, operating cash flow turned sharply negative as higher cash tax payments and increased variable compensation outweighed strong earnings, creating a notable divergence between profitability and cash generation.
Revenue
$1.99B
+18.85% YoY
EPS (Diluted)
$1.56
+97.47% YoY
Gross Margin
86.2%
+2.9 pts YoY
Operating Income
$513M
+89.30% YoY
Source: SEC XBRL
Electronic Arts (EA) reported Q1 FY2027 revenue of $1.99B, up 18.9% year over year. Operating margin was 25.8%, up 9.6 points from 16.2% a year earlier. Operating cash flow was negative $242M. EA's fiscal Q1 FY2027 corresponds to calendar Q2 2026.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 1.59 | 2.49 | Miss -36.0% |
| Dec 2025 | 4.82 | 4.86 | Miss -0.9% |
| Sep 2025 | 1.21 | 1.34 | Miss -9.8% |
| Jun 2025 | 0.25 | 0.11 | Beat +122.4% |
Compiled by AI from 10-Q Item 2 of this filing
Full game net revenue surged 78% to $514 million, primarily due to the release of Battlefield 6, which more than offset lower sales from Split Fiction.
Source: 10-Q Item 2 MD&A
Live services and other net revenue increased 7% to $1,472 million, driven by higher extra content sales in EA SPORTS FC and Apex Legends, partially offset by a decrease in Ultimate Team sales from EA SPORTS College Football.
Source: 10-Q Item 2 MD&A
Gross margin improved by 3 percentage points to 86.2%, primarily due to a favorable mix shift toward higher-margin digital sales and a net decrease in royalty costs.
Source: 10-Q Item 2 MD&A
Net cash used in operating activities was $242 million, compared to $17 million provided a year ago, driven by higher cash payments for income taxes and increased variable compensation and personnel-related payments.
Source: 10-Q Item 2 MD&A
Net bookings, which adjusts for changes in deferred net revenue, was $1,349 million, up 4% year-over-year, with live services net bookings increasing 3% to $1,116 million.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 3 high, 2 medium, 0 low
The pending acquisition by a consortium of investors faces regulatory and stockholder approval conditions, and failure to close could disrupt operations and depress the stock price. Litigation related to the merger may also divert management attention.
Source: 10-Q Item 1A Risk Factors
EA's financial results are heavily reliant on a few major franchises, particularly EA SPORTS FC; underperformance or increased competition could disproportionately harm revenue and profitability.
Source: 10-Q Item 1A Risk Factors
EA and its partners are frequent targets of cyberattacks, including ransomware, which could lead to service disruptions, data loss, and reputational harm. The increasing sophistication of AI-driven attacks exacerbates this risk.
Source: 10-Q Item 1A Risk Factors
EA depends on console manufacturers and digital storefronts (e.g., Microsoft, Sony) for distribution; changes in their policies, fees, or business health could significantly impact EA's revenue and margins.
Source: 10-Q Item 1A Risk Factors
The competitive market for skilled game developers and executives poses a constant risk of losing key talent, which could delay product development and increase costs.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.99 $B | 1.67 $B | +18.85% |
Cost of Revenue $M | 274.00 $M | 279.00 $M | -1.79% |
Gross Profit $B | 1.71 $B | 1.39 $B | +22.99% |
Operating Income $M | 513.00 $M | 271.00 $M | +89.30% |
Net Income $M | 397.00 $M | 201.00 $M | +97.51% |
EPS (Basic) $ | 1.58 $ | 0.80 $ | +97.50% |
EPS (Diluted) $ | 1.56 $ | 0.79 $ | +97.47% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
EA's FY2026 revenue grew modestly to $7.53B (+0.9% YoY), but operating income fell sharply by 23.6% to $1.16B, reflecting rising costs and margin compression, even as operating cash flow surged 22.8% to $2.55B.
EA's Q3 FY2026 results showed nearly flat revenue growth of +1.0% to $1.90B, but operating income collapsed 66.3% to $127M and net income fell 70.0% to $88M, driven by sharply higher costs and expenses, while year-to-date operating cash flow surged 29.0% to $1.97B.
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