Electronic Arts Sales Fall 13% in September Quarter; Game Giant Suspends Earnings Calls and Guidance Ahead of Go-Private Deal

Electronic Arts, a leading name in interactive entertainment, recently announced a 13% year-over-year fall in its sales during the July-September quarter, its fiscal second quarter for 2026. This financial update arrived alongside a significant strategic shift: the game giant will suspend its usual quarterly earnings calls and cease issuing forward-looking financial guidance. These changes are attributed to the company’s impending $55 billion deal to go private, a transaction that marks a pivotal moment for the industry behemoth.

Q2 FY26 Performance: A Closer Look at the Numbers

For the second quarter of fiscal year 2026, which concluded on September 30, 2025, Electronic Arts reported net bookings of $1.82 billion, a 13% decrease compared to $2.1 billion in the same period last year. This decline was primarily driven by the exceptionally strong performance of College Football 25 in the prior year’s comparable quarter.

Despite the overall decrease in net bookings, EA did surpass some internal and analyst expectations. The company reported non-GAAP diluted earnings per share (EPS) of 54 cents, exceeding Wall Street’s forecast of 35 cents per share. Net revenue for the quarter stood at $1.84 billion. Electronic Arts also reported a net income of $137 million, which was above its own projected range.

Key Performers Amidst Shifting Tides

While overall sales saw a dip, several of EA’s franchises demonstrated solid performance during the quarter:

• Madden NFL 26: The latest iteration in the long-running American football series contributed to year-over-year net bookings growth, indicating sustained player engagement.
• Apex Legends: The popular battle royale title experienced a return to double-digit sales growth year-over-year, showcasing renewed momentum.
• EA Sports FC 26 HD: The rebranded football (soccer) franchise saw an increase in net bookings compared to the previous year’s title, after adjusting for differences in deluxe edition content timing.

EA CEO Andrew Wilson acknowledged the performance, stating in a letter to shareholders that “Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans, built some of the world’s most iconic IP, and created significant value for our business.”

The Path to Privatization: A $55 Billion Deal

The decision to halt earnings calls and financial guidance stems directly from the impending $55 billion deal to take Electronic Arts private. Announced on September 29, 2025, this all-cash transaction involves an investor consortium comprising the Saudi Arabia Public Investment Fund (PIF), Jared Kushner’s Affinity Partners, and Silver Lake Group. This deal, if completed, would be the largest leveraged buyout in history.

The consortium plans to acquire 100% of EA, with PIF rolling over its existing 9.9% stake in the company. EA stockholders are set to receive $210 per share in cash, representing a 25% premium over EA’s unaffected share price on September 25, 2025. The transaction is projected to close by the first quarter of 2027, pending regulatory approvals and shareholder agreement.

Implications of Going Private for Electronic Arts

Taking Electronic Arts private is expected to have broad implications for the company’s operational strategy, game development, and overall market presence. Experts suggest that by becoming a private entity, EA could gain more autonomy from the constant scrutiny of public markets and quarterly shareholder interests. This “breathing room” might allow for greater freedom in strategic decisions and long-term development without immediate pressure to meet short-term financial targets.

However, the deal also comes with considerable debt financing, estimated at around $20 billion, which EA will be responsible for servicing. This significant financial commitment could influence future business decisions, potentially leading to a focus on predictable revenue streams and robust monetization strategies, particularly through live-service games, which already constitute over 70% of EA’s income. Concerns have also been raised regarding potential cost-cutting measures, including layoffs or studio closures, given that private equity buyouts often lead to such actions.

For players, the impact could be multifaceted. On one hand, less public pressure might enable development teams to refine games and take more creative risks, potentially leading to higher-quality titles. On the other hand, a push for consistent revenue to service debt could result in more aggressive monetization, expanded subscription tiers, or even reduced presence on third-party platforms.

Recent Game Lifecycle Adjustments

In a separate but related development in October 2025, EA confirmed the shutdown of online services for several older titles. These include FIFA 23, NHL 21, Need for Speed: Rivals, and Madden NFL 22. While common for older sports titles with annual releases, the inclusion of Need for Speed: Rivals, a game with a more distinct identity and community, sparked particular discussion among fans.

Conclusion

Electronic Arts is navigating a transformative period marked by declining sales in its September quarter and a monumental shift towards private ownership. The pending $55 billion go-private deal represents a significant turning point, promising both new freedoms and potential challenges. As EA steps away from the public eye, the gaming community and industry observers will be watching closely to see how this strategic move influences the company’s portfolio, development ethos, and ultimately, the experiences delivered to its vast player base.