Electronic Arts Inc (NASDAQ:EA) shares are trading higher premarket on Wednesday after the company reported third-quarter revenue of $1.883 billion, beating the consensus of $1.654 billion.

Net bookings reached $2.215 billion, missed the consensus estimate of $2.325 billion.

Read: Electronic Arts Set To Report Q3 Earnings Amid Analyst Downgrade, FC Franchise Concerns, 16% Year-To-Date Stock Decline

The company said that American Football witnessed double-digit growth in weekly active users year-over-year in the quarter and is on pace to surpass $1 billion in net bookings for FY25.

In the quarter, EA introduced Battlefield Labs, a player-driven testing initiative designed to foster innovation ahead of the franchise’s anticipated FY26 release.

EPS was $1.11 against the $1.07 reported in the prior year quarter.

Notably, last month, the company reported preliminary quarterly numbers, expecting a mid-single-digit decline largely due to a slowdown in Global Football.

Operating cash flow was $1.176 billion for the quarter. As of December 31, cash and cash equivalents stood at $2.78 billion.

Dividend: The company declared a quarterly dividend per share of $0.19, payable on March 19, to stockholders of record as of February 26, 2025.

During the quarter, EA repurchased 2.4 million shares for $375 million. The company plans for an accelerated stock repurchase of $1 billion, aiming to reach $2.5 billion in stockholder returns within the first year of its $5 billion authorization.

Outlook: For the fourth quarter, Electronic Arts expects EPS of $0.65 – $1.00 and revenue of $1.682 billion – $1.832 billion. The company expects net bookings of $1.444 billion to $1.594 billion in the quarter.

For FY25, the company sees EPS of $3.90 – $4.25 (previous view $3.82 – $4.33) and revenue of $7.25 billion – $7.40 billion (prior view $7.40 billion – $7.70 billion).

Also, the company projects net bookings of around $7.00 billion to $7.15 billion in the year, down from the prior outlook of $7.50 billion to $7.80 billion.

Andrew Wilson, CEO of Electronic Arts, said, “The record success of our EA SPORTS FC 25 Team of the Year event demonstrates our creative teams’ ability to adapt, innovate, and execute at scale.”

“As we build on this momentum across EA, we are confident in a return to growth in FY26 and beyond as we bring our next wave of iconic entertainment to players and fans worldwide.”

Investors can gain exposure to the stock via Roundhill Video Games ETF (NASDAQ:NERD) and Global X Video Games & Esports ETF (NASDAQ:HERO).

Price Action: EA shares are up 2.99% at $124.87 premarket at the last check Wednesday.

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