A Business at a Glance
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ELECTRONIC ARTS INC.
EA
$52.8B
Mkt Cap
$209.06
+0.03%
ELECTRONIC ARTS INC. (EA) has a current P/E ratio of 78.3, compared to its historical median P/E of 33.8. The stock is currently considered Expensive based on its historical valuation range.
ELECTRONIC ARTS INC. (EA) has a 5-year average return on invested capital (ROIC) of 15.9%. This indicates strong capital allocation and a potential competitive advantage.
ELECTRONIC ARTS INC. (EA) has a market capitalization of $52.8B. It is classified as a large-cap stock.
Yes, ELECTRONIC ARTS INC. (EA) pays a dividend with a trailing twelve-month yield of 0.36%. The company also returns capital through share buybacks, with a buyback yield of 1.46%.
Based on historical P/E analysis, ELECTRONIC ARTS INC. (EA) appears expensive. The current P/E of 78.3 is 132% above its historical median of 33.8. The estimated fair value CAGR (P/E method) is -6.0%.
ELECTRONIC ARTS INC. (EA) operates in the Services-Prepackaged Software industry, within the Technology sector.
ELECTRONIC ARTS INC. (EA) reported annual revenue of $7.5 billion in its most recent fiscal year, based on SEC EDGAR filings.
Electronic Arts is a global leader in digital interactive entertainment that develops, markets, publishes and delivers games and content across consoles, PCs and mobile devices to hundreds of millions of players worldwide. The company operates through a diversified portfolio spanning sports franchises (EA SPORTS FC, Madden NFL, College Football), action and shooter titles (Apex Legends, Battlefield), simulation games (The Sims), and other IP, generating revenue through multiple business models including full-game purchases, subscription services, and free-to-play offerings with in-game monetization. Live services and other net revenue represented 73 percent of total net revenue in fiscal year 2025, with Ultimate Team modes in sports franchises and content purchases within games serving as material revenue drivers. The company distributes console products primarily through Sony and Microsoft (representing approximately 39 percent and 17 percent of total net revenue respectively in fiscal 2025), while mobile and PC products are distributed through third-party storefronts such as Apple, Google, and Steam, as well as through direct digital channels and publishing partnerships with companies like Tencent and Nexon. EA's competitive advantages stem from its creative talent, production capabilities, broad portfolio of owned and licensed intellectual property, and technological foundation supporting a global player network, though the company faces intense competition from large diversified entertainment companies and new market entrants, with competitive success dependent on game quality, innovation, brand recognition, talent attraction, and ability to adapt to rapidly evolving distribution channels and player preferences.
【Strong portfolio momentum ahead】 Management expects fiscal 2026 to be driven by growth from the EA Sports portfolio, The Sims franchise, and the highly anticipated launches of Battlefield 6 and Skate, with the company well-positioned to deliver against its full-year outlook and long-term margin framework. Following an extraordinary 2025 for College Football fueled by pent-up demand, the franchise is expected to settle into a more normal demand curve while establishing itself as a core franchise, with strong competitive cohort retention observed early in fiscal 2026. The company continues to focus on deepening player engagement through live events, new features, and community-driven content, with particular emphasis on evolving gameplay experiences and strengthening core mechanics across franchises like Apex Legends and EA SPORTS FC. Management remains committed to its long-term financial framework through fiscal 2027, with margin expansion underpinned by continued live services growth, multiple new planned releases, and milestone moments for EA Sports, while maintaining disciplined capital allocation prioritizing investment behind the largest franchises.
| Metric | Target | Period |
|---|---|---|
| Net bookings | $7.6 billion–$8 billion | FY 2026 |
| Net revenue | $7.1 billion–$7.5 billion | FY 2026 |
| Operating expenses | $4.47 billion–$4.57 billion | FY 2026 |
| Operating margin (GAAP) | 16.3%–18.9% | FY 2026 |
| Operating margin (non-GAAP) | 27.2%–29.2% | FY 2026 |
| EPS (GAAP) | $3.09–$3.79 | FY 2026 |
| Operating cash flow | $2.2 billion–$2.4 billion | FY 2026 |
| Free cash flow | $1.975 billion–$2.175 billion | FY 2026 |
| Q1 FY2026 net bookings | $1.175 billion–$1.275 billion | Q1 FY2026 |
| Q1 FY2026 net revenue | $1.55 billion–$1.65 billion | Q1 FY2026 |
| Q1 FY2026 EPS |
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q3 FY2026 Earnings Call, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call, Q4 FY2025 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 7.5B | 7.5B | 7.5B | 7.6B | 7.4B | 7.0B |
| Net Income | 887M | 887M | 1.1B | 1.3B | 802M | 789M |
| EPS | $3.51 | $3.51 | $4.25 | $4.68 | $2.88 | $2.76 |
| Free Cash Flow | 2.3B | 2.3B | 1.9B | 2.1B | 1.3B | 1.7B |
| ROIC | 16.2% | 15.9% | 17.5% | 18.9% | 12.2% | 15.1% |
| Gross Margin | 79.0% | 79.0% | 79.3% | 77.4% | 75.9% | 73.4% |
| Debt/Equity | 0.22 | 0.22 | 0.23 | 0.25 | 0.26 | 0.25 |
| Dividends/Share | $0.76 | $0.76 | $0.76 | $0.76 | $0.76 | $0.68 |
| Operating Income | 1.2B | 1.2B | 1.5B | 1.5B | 1.3B | 1.1B |
| Operating Margin | 15.4% | 15.4% | 20.4% | 20.1% | 17.9% | 16.1% |
| ROE | 13.1% | 13.5% | 16.1% | 17.2% | 10.8% | 10.2% |
| Shares Outstanding | 253M | 253M | 264M | 272M | 278M | 286M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 4.5B | 4.4B | 4.8B | 5.2B | 5.0B | 5.5B | 5.6B | 7.0B | 7.4B | 7.6B | 7.5B | 7.5B | 7.5B |
| Gross Margin | 68.3% | 69.2% | 73.2% | 75.2% | 73.3% | 75.3% | 73.5% | 73.4% | 75.9% | 77.4% | 79.3% | 79.0% | 79.0% |
| R&D | 1.1B | 1.1B | 1.2B | 1.3B | 1.4B | 1.6B | 1.8B | 2.2B | 2.3B | 2.4B | 2.6B | 2.8B | 2.8B |
| SG&A | 386M | 406M | 439M | 469M | 460M | 506M | 592M | 673M | 727M | 691M | 745M | 763M | 763M |
| EBIT | 948M | 898M | 1.2B | 1.4B | 996M | 1.4B | 1.0B | 1.1B | 1.3B | 1.5B | 1.5B | 1.2B | 1.2B |
| Op. Margin | 21.0% | 20.4% | 25.3% | 27.8% | 20.1% | 26.1% | 18.6% | 16.1% | 17.9% | 20.1% | 20.4% | 15.4% | 15.4% |
| Net Income | 875M | 1.2B | 967M | 1.0B | 1.0B | 3.0B | 837M | 789M | 802M | 1.3B | 1.1B | 887M | 887M |
| Net Margin | 19.4% | 26.3% | 20.0% | 20.3% | 20.6% | 54.9% | 14.9% | 11.3% | 10.8% | 16.8% | 15.0% | 11.8% | 11.8% |
| Non-Recurring | 0 | 0 | 23M | 0 | 0 | 0 | 0 | 45M | 217M | 132M | 57M | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 97.6% | 106.9% | 81.2% | 75.3% | 85.2% | 77.3% | 23.1% | 15.1% | 12.2% | 18.9% | 17.5% | 15.9% | 16.2% |
| ROE | 32.1% | 35.9% | 25.9% | 24.1% | 20.5% | 47.5% | 10.9% | 10.2% | 10.8% | 17.2% | 16.1% | 13.5% | 13.1% |
| ROA | 14.8% | 17.5% | 13.1% | 12.8% | 11.6% | 30.3% | 6.9% | 5.8% | 5.9% | 9.5% | 8.7% | 7.0% | 6.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 1.1B | 1.5B | 1.6B | 1.7B | 1.5B | 1.8B | 1.9B | 1.9B | 1.6B | 2.3B | 2.1B | 2.6B | 2.6B |
| Free Cash Flow | 972M | 1.4B | 1.5B | 1.6B | 1.4B | 1.7B | 1.8B | 1.7B | 1.3B | 2.1B | 1.9B | 2.3B | 2.3B |
| Owner Earnings | 783M | 1.2B | 1.3B | 1.3B | 1.1B | 1.3B | 1.3B | 1.0B | 651M | 1.4B | 1.2B | 1.6B | 1.6B |
| CapEx | 95M | 93M | 123M | 107M | 119M | 140M | 124M | 188M | 207M | 199M | 221M | 230M | 230M |
| Maint. CapEx | 140M | 126M | 121M | 129M | 144M | 142M | 168M | 345M | 351M | 338M | 271M | 282M | 282M |
| Growth CapEx | 0 | 0 | 2.0M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 140M | 126M | 121M | 129M | 144M | 142M | 168M | 345M | 351M | 338M | 271M | 282M | 282M |
| CapEx/OCF | 8.9% | 7.6% | 7.8% | 6.3% | 7.7% | 0.4% | 0.9% | 1.0% | 0.2% | 1.1% | N/A | N/A | 9.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 98M | 193M | 210M | 205M | 199M | 191M | 191M |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | 0.3% | 0.5% | 0.6% | 0.6% | 0.5% | N/A | 0.4% |
| Share Buybacks | 337M | 1.0B | 508M | 601M | 1.2B | 1.2B | 729M | 1.3B | 1.3B | 1.3B | 2.5B | 769M | 769M |
| Buyback Yield | 1.8% | 4.9% | 1.9% | 1.7% | 3.9% | 4.4% | 1.9% | 3.6% | 4.0% | 3.6% | 6.6% | 0.0% | 1.5% |
| Stock-Based Comp | 144M | 178M | 196M | 242M | 284M | 347M | 435M | 528M | 548M | 584M | 642M | 656M | 656M |
| Debt Repayment | 0 | 470M | 163M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -2.4B | -2.7B | -3.5B | -4.3B | -4.5B | -5.3B | -4.5B | -1.2B | -887M | -1.4B | -764M | -1.5B | -1.4B |
| Cash & Equiv. | 2.1B | 2.5B | 2.6B | 4.3B | 4.7B | 3.8B | 5.3B | 2.7B | 2.4B | 2.9B | 2.1B | 2.9B | 2.9B |
| Long-Term Debt | 0 | 989M | 990M | 992M | 994M | 397M | 1.9B | 1.9B | 1.9B | 1.9B | 1.5B | 1.5B | 1.5B |
| Debt/Equity | 0.20 | 0.34 | 0.24 | 0.22 | 0.19 | 0.05 | 0.24 | 0.25 | 0.26 | 0.25 | 0.23 | 0.22 | 0.22 |
| Interest Coverage | 30.6 | 32.1 | 26.0 | 32.6 | 22.1 | 32.8 | 23.2 | 19.5 | 23.0 | 26.2 | 26.2 | 21.9 | 21.9 |
| Equity | 3.0B | 3.4B | 4.1B | 4.6B | 5.3B | 7.5B | 7.8B | 7.6B | 7.3B | 7.5B | 6.4B | 6.8B | 6.8B |
| Total Assets | 6.1B | 7.0B | 7.7B | 8.6B | 9.0B | 11.1B | 13.3B | 13.8B | 13.5B | 13.4B | 12.4B | 13.1B | 13.1B |
| Total Liabilities | 3.1B | 3.7B | 3.7B | 4.0B | 3.6B | 3.7B | 5.4B | 6.2B | 6.2B | 5.9B | 6.0B | 6.4B | 6.4B |
| Intangibles | 111M | 57M | 8.0M | 71M | 87M | 53M | 309M | 962M | 618M | 400M | 293M | 195M | 195M |
| Retained Earnings | 904M | 2.1B | 3.0B | 4.1B | 5.4B | 7.5B | 7.9B | 7.6B | 7.4B | 7.6B | 6.5B | 6.6B | 6.6B |
| Working Capital | 973M | 1.9B | 2.8B | 3.5B | 4.1B | 3.9B | 4.2B | 638M | 684M | 1.2B | -183M | 176M | 176M |
| Current Assets | 3.7B | 4.4B | 5.2B | 6.0B | 6.4B | 6.5B | 7.2B | 4.2B | 4.0B | 4.2B | 3.3B | 4.0B | 4.0B |
| Current Liabilities | 2.7B | 2.4B | 2.4B | 2.5B | 2.3B | 2.7B | 3.0B | 3.5B | 3.3B | 3.1B | 3.5B | 3.8B | 3.8B |
| Per Share Data | |||||||||||||
| EPS | 2.69 | 3.50 | 3.08 | 3.34 | 3.33 | 10.30 | 2.87 | 2.76 | 2.88 | 4.68 | 4.25 | 3.51 | 3.51 |
| Owner EPS | 2.41 | 3.52 | 4.02 | 4.23 | 3.66 | 4.43 | 4.56 | 3.59 | 2.34 | 5.12 | 4.42 | 6.39 | 6.39 |
| Book Value | 9.33 | 10.28 | 12.93 | 14.71 | 17.42 | 25.29 | 26.88 | 26.67 | 26.19 | 27.62 | 24.21 | 26.77 | 26.77 |
| Cash Flow/Share | 3.28 | 4.44 | 5.03 | 5.42 | 5.06 | 6.09 | 6.63 | 6.64 | 5.57 | 8.51 | 7.88 | 10.10 | 4.63 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | 0.00 | 0.34 | 0.68 | 0.76 | 0.76 | 0.76 | 0.76 | 0.76 |
| Shares Out. | 325.3M | 330.3M | 314.0M | 312.3M | 306.0M | 295.0M | 291.6M | 285.9M | 278.5M | 272.0M | 263.8M | 252.7M | 252.7M |
| Valuation | |||||||||||||
| P/E Ratio | 21.0 | 17.9 | 28.3 | 34.7 | 29.8 | 9.0 | 45.1 | 45.4 | 40.4 | 28.1 | 33.8 | N/A | 59.6 |
| P/FCF | 18.9 | 15.1 | 18.8 | 22.8 | 21.3 | 16.5 | 20.8 | 20.9 | 24.1 | 16.9 | 20.4 | N/A | 22.7 |
| EV/EBIT | 17.5 | 20.3 | 19.5 | 22.2 | 26.0 | 15.6 | 31.8 | 30.7 | 23.6 | 22.6 | 24.7 | N/A | 44.3 |
| Price/Book | 6.1 | 6.1 | 6.7 | 7.9 | 5.7 | 3.7 | 4.8 | 4.7 | 4.4 | 4.8 | 5.9 | N/A | 7.8 |
| Price/Sales | 6.6 | 11.2 | 10.9 | 6.6 | 6.7 | 5.1 | 6.6 | 5.5 | 4.6 | 4.6 | 5.0 | N/A | 7.0 |
| FCF Yield | 5.3% | 6.6% | 5.3% | 4.4% | 4.7% | 6.1% | 4.8% | 4.8% | 4.1% | 5.9% | 4.9% | N/A | 4.4% |
| Market Cap | 18.4B | 20.7B | 27.4B | 36.2B | 30.4B | 27.3B | 37.7B | 35.8B | 32.4B | 35.7B | 37.9B | 0 | 52.8B |
| Avg. Price | 39.49 | 64.48 | 76.35 | 109.12 | 108.44 | 95.58 | 126.47 | 133.54 | 122.06 | 128.69 | 140.51 | 0.00 | 209.06 |
| Year-End Price | 56.57 | 62.79 | 87.17 | 115.91 | 99.27 | 92.64 | 129.38 | 125.33 | 116.22 | 131.40 | 143.63 | 0.00 | 209.06 |
ELECTRONIC ARTS INC. passes 3 of 9 quality checks, indicating weak fundamentals.
ELECTRONIC ARTS INC. trades at 78.3x trailing earnings, compared to its 15-year median P/E of 33.8x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 20.7x vs a median of 20.8x. The company's 5-year average ROIC is 15.9% with a gross margin of 77.0%. Total shareholder yield (dividends + buybacks) is 1.8%. At current prices, the estimated annualized return to fair value is +7.9%.
ELECTRONIC ARTS INC. (EA) has a net profit margin of 11.8%. This is a healthy margin.
ELECTRONIC ARTS INC. (EA) generated $2.3 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
ELECTRONIC ARTS INC. (EA) has a debt-to-equity ratio of 0.22. This indicates a conservatively financed balance sheet.
ELECTRONIC ARTS INC. (EA) reported earnings per share (EPS) of $3.51 in its most recent fiscal year.
ELECTRONIC ARTS INC. (EA) has a return on equity (ROE) of 13.5%. This indicates moderate shareholder returns.
ELECTRONIC ARTS INC. (EA) has a 5-year average gross margin of 77.0%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for ELECTRONIC ARTS INC. (EA), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
ELECTRONIC ARTS INC. (EA) has a book value per share of $26.77, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects fiscal 2026 to be driven by growth from the EA Sports portfolio, The Sims franchise, and the highly anticipated launches of Battlefield 6 and Skate, with the company well-positioned to deliver against its full-year outlook and long-term margin framework. Following an extraordinary 2025 for College Football fueled by pent-up demand, the franchise is expected to settle into a more normal demand curve while establishing itself as a core franchise, with strong competitive cohort retention observed early in fiscal 2026. The company continues to focus on deepening player engagement through live events, new features, and community-driven content, with particular emphasis on evolving gameplay experiences and strengthening core mechanics across franchises like Apex Legends and EA SPORTS FC. Management remains committed to its long-term financial framework through fiscal 2027, with margin expansion underpinned by continued live services growth, multiple new planned releases, and milestone moments for EA Sports, while maintaining disciplined capital allocation prioritizing investment behind the largest franchises.
Based on recent SEC filings and earnings calls, ELECTRONIC ARTS INC. (EA) has provided the following forward guidance: Net bookings: $7.6 billion–$8 billion (FY 2026); Net revenue: $7.1 billion–$7.5 billion (FY 2026); Operating expenses: $4.47 billion–$4.57 billion (FY 2026); Operating margin (GAAP): 16.3%–18.9% (FY 2026); Operating margin (non-GAAP): 27.2%–29.2% (FY 2026), plus 9 additional metrics.
| $0.49–$0.66 |
| Q1 FY2026 |
| Q2 FY2026 net bookings | $1.8 billion–$1.9 billion | Q2 FY2026 |
| Q2 FY2026 net revenue | $1.75 billion–$1.85 billion | Q2 FY2026 |
| Q2 FY2026 EPS | $0.29–$0.46 | Q2 FY2026 |
Net bookings (FY 2026): “we expect fiscal year net bookings of $7.6 billion-$8 billion, up 3%-9% year- over- year”
Net revenue (FY 2026): “Turning to GAAP, we expect net revenue of $7.1 billion-$7.5 billion”
Operating expenses (FY 2026): “We expect GAAP operating expenses to be $4.47 billion-$4.57 billion, up 2%-4% year- over- year”
Operating margin (GAAP) (FY 2026): “We expect GAAP operating margin to be 16.3%-18.9%”
Operating margin (non-GAAP) (FY 2026): “We expect non-GAAP operating margin to be 27.2%-29.2%”
EPS (GAAP) (FY 2026): “We expect GAAP EPS of $3.09-$3.79”
Operating cash flow (FY 2026): “We expect operating cash flow between $2.2 billion and $2.4 billion”
Free cash flow (FY 2026): “we expect to deliver free cash flow of $1.975 billion-$2.175 billion, up 6%-17%”