Electronic Arts misses second quarter estimates on lower booking and high cost

Investing.com -- Electronic Arts reported quarterly profit and revenue below Wall Street expectations on Tuesday.

The videogame publisher posted earnings per share of $0.54, missing estimates of $1.30, while revenue came in at $1.82 billion, short of the $1.87 billion expected.

Its first earnings release since agreeing to be acquired by a group of private investors, including Saudi Arabia’s Public Investment Fund, for $55 billion.

Net bookings fell 13% from a year earlier to $1.82 billion, reflecting a tough comparison with last year’s blockbuster release of College Football 25.

Though key titles including Madden NFL 26 and Apex Legends returned to year-over-year growth, and EA SPORTS FC 26 sales rose mid-single digits after adjusting for release timing.

The company said the launches of skate. and Battlefield 6 will expand community-driven games that encourage long-term player engagement.

EA generated $130 million in operating cash flow for the quarter and $1.87 billion over the past twelve months. It repurchased 2.3 million shares for $375 million during the quarter and declared a quarterly dividend of $0.19 per share, payable Dec. 23.

CEO Andrew Wilson said EA’s creative teams continued to deliver high-quality experiences across franchises including Battlefield and The Sims.

The results come as investors await regulatory approvals for the company’s planned buyout, which would take the FIFA and Apex Legends publisher private amid ongoing consolidation in the gaming industry.

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