🎮 Electronic Arts: Strong quarter thanks to sports, The Sims and the new Split Fiction. Growth outlook overshadows Apex Legends slump.

Electronic Arts $EA is a video game company, best known as the publisher of popular video game franchises such as FIFA, The Sims, Battlefield and Need for Speed. The company is one of the largest game publishers in the world and focuses on developing games for consoles, PC and mobile devices.

The company closed the fiscal year 2025 with a quarter that significantly exceeded expectations, primarily due to the outstanding performance of the game franchises EA Sports FC, Madden NFL, The Sims and the successful launch of the new Split Fiction.

📊 Important numbers for Q4 FY25:
Net revenue: $1.9 billion (+7% y/y)

EPS: $1.50 (+46%)

Gross margin: 80.6%

Operating expenses: USD 1.13 billion (-5%)

Free cash flow. US$ 495 MILLION

Full year 2025:
Net sales: USD 7.36 billion (-1%)

Live Services: USD 5.34 billion (-2%)

Free Cash Flow: USD 1.86 billion

EPS (GAAP): USD 4.25

Gross Margin: 79.3% (+200 bps)

🟢 Positives and performance drivers:
American Football: net bookings of over USD 1 billion (+70% y/y)

The Sims: Best Q4 in history, double-digit growth in activity

EA Sports FC: New updates + intimate community lead to double-digit growth in player activity

Split Fiction: Almost 4 million. 4 million copies, for EA Confirmation that they can continue to create new and exciting franchises

🔴 Negative points:
Apex's expected decline by -40 % Y/Y in 2026

FC24 → FC25 Transition slower than expected

🔭 FY26 outlook:
Net bookings: USD 7.6-8.0 billion (+3 to 9% y/y)

Free cash flow: USD 1.975-2.175 billion (+6-17% y/y)

EPS (Q1): USD 0.49-0.66

Bookings (Q1): USD 1.175-1.275 billion

Electronic Arts thus showing that even in a difficult environment, it can generate strong cash flow, hold high margins and launch new brands effectively. Diversification of the game portfolio and quality sports titles keep the company stable. But Apex Legends will be a major player in the year 2026 and the pressure for new sources of growth is clear.

EA remains a profitable, cash strong player with sound cost management, but also a business that will need to show it can successfully expand its successful franchises in the coming quarters.

What's your take on this company?