Electronic Arts (EA.US) reported weaker-than-expected fiscal third-quarter results, with both revenue and earnings falling short of estimates, although record net bookings, fueled by the launch of 'Battlefield 6,' helped mitigate the downside pressure.
Total revenue increased by less than 1% to $1.901 billion, falling short of the prior estimate of $2.01 billion, as growth in full-game sales offset a decline in live services revenue.
Increased spending on research and development, marketing, and general and administrative expenses during the period resulted in net income of just $88 million, or $0.35 per share, down from $293 million, or $1.11 per share, a year earlier, and below expectations.
However, third-quarter bookings exceeded expectations, primarily driven by robust sales of its new title 'Battlefield,' signaling that the company's significant investment in its top-selling shooter franchise is beginning to pay off.
According to data compiled by LSEG, Electronic Arts' third-quarter bookings reached $3.05 billion, a 38% increase, surpassing the expected $2.86 billion.
The performance indicates a strong resurgence for one of EA's most valuable intellectual properties.
'Battlefield 6' sold millions of copies during the year-end holiday sales season and, according to industry tracker Circana, became the best-selling game of 2025.
The strong performance of 'Battlefield 6' also bodes well for EA's future owners—the Saudi Arabian Public Investment Fund and other investors—who are seeking to leverage EA's powerful IP portfolio to make inroads into the lucrative gaming sector.
Despite the strong sales of the 'Battlefield' franchise, the focus is now shifting to how the company will retain its player base and monetize game features in a way that engages users, thereby avoiding player churn.
Electronic Arts relies heavily on in-game purchases to extend the lifecycle of its games and generate stable revenue.
In addition to announcing preliminary third-quarter results, Electronic Arts also declared a quarterly cash dividend of $0.19 per share, payable on March 18 to shareholders of record as of February 25.