Electronic Arts Inc.

EA
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
Latest Q Revenue
$2.1B
Q4 FY2026 · +11.9% YoY
TTM ROIC
17.2%
FY2026 · NOPAT / Invested Capital; NOPAT = Operating Income × (1 – ~22% effective tax rate); Invested Capital = Total Equity + Total Debt – Cash & ST Investments · WACC ~9.5% · Moat spread +7.7pp

Financial Snapshot

ticker: EA step: 04 generated: 2026-05-12 source: quick-research

Electronic Arts Inc. (EA) — Financial Snapshot

Income Statement Summary

Note: EA fiscal year ends March 31. FY2024 = April 2023–March 2024; FY2025 = April 2024–March 2025.

Metric FY2023 FY2024 FY2025 YoY
Revenue (net bookings) $7.43B $7.56B $7.46B -1.3%
Gross Margin ~79% ~79% ~79% flat
Operating Margin ~18% ~20% ~20% flat
Net Income ~$0.79B ~$1.00B ~$0.95B -5%
EPS (diluted, adj.) ~$2.65 ~$3.46 ~$3.50 +1%

FY2025 net bookings of $7.463B slightly below FY2024 ($7.562B), driven by EA SPORTS FC 25 underperformance and weaker-than-expected Dragon Age: The Veilguard sales. Live services held steady at ~$5.6B; full game net bookings declined. FY2026 guidance: net bookings $7.6–8.0B.

Cash Flow & Balance Sheet (FY2025)

Metric Value
Operating Cash Flow ~$2.0B
Free Cash Flow ~$1.86B
FCF Margin ~25%
Cash & Equivalents ~$3.0B
Total Debt ~$1.6B
Net Cash ~$1.4B (net cash positive)

Key Ratios (approximate)

  • P/E: ~20x (reported) | FCF Yield: ~5% at current market cap
  • EV/EBITDA: ~14x | Dividend Yield: ~0.7%
  • Revenue Growth (TTM): ~-1% | FCF Margin: ~25%
  • Share Buybacks: ~$1.5B returned in FY2025; $5B+ buyback authorization active

Growth Profile

EA is in a transition year: FY2025 saw revenue essentially flat as two major titles underdelivered. The live services base (~$5.6B, up modestly) provides revenue stability. FY2026 is set up as a major release year with EA SPORTS FC 26, Battlefield (reboot), skate., and The Sims 5 — if execution succeeds, net bookings could inflect toward $7.6–8.0B. The company has been restructuring (cutting ~1,900 jobs, $125M in charges) to reduce cost structure and improve operating leverage. The potential Saudi PIF acquisition ($55–56.6B implied enterprise value) represents an exogenous catalyst.

Forward Estimates

  • FY2026: Net bookings $7.6–8.0B (company guidance); adj. EPS growth expected mid-single-digit if titles land; Battlefield reboot and EA SPORTS FC 26 are the key drivers
  • FY2027+: Skate. reboot and The Sims 5 (free-to-play transition) as multi-year engagement platforms; mobile expansion in EA SPORTS FC and Apex Legends
  • Capital return: ~$1.5B/year in buybacks expected; dividend at $0.76/share annualized

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $EA.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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