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EA

Electronic Arts Inc.

EA

Electronic Arts Inc. • NASDAQ
$202.03 ▲ 0.05% (+0.11)
Market Cap $50.39 B
52w High $203.75
52w Low $115.21
Dividend Yield 0.57%
P/E 58.9
Volume 658.46K
Outstanding Shares 249.41M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2026 $1.839B ▲ $1.179B ▲ $137M ▼ 7.45% ▼ $0.55 ▼ $282M ▼
Q1-2026 $1.671B ▼ $1.121B ▼ $201M ▼ 12.029% ▼ $0.8 ▼ $350M ▼
Q4-2025 $1.895B ▲ $1.132B ▲ $254M ▼ 13.404% ▼ $0.97 ▼ $501M ▲
Q3-2025 $1.883B ▼ $1.05B ▼ $293M ▼ 15.56% ▲ $1.12 ▲ $495M ▼
Q2-2025 $2.025B $1.185B $294M 14.519% $1.11 $535M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2026 $1.26B ▼ $11.854B ▲ $5.854B ▲ $6B ▼
Q1-2026 $1.63B ▼ $11.699B ▼ $5.617B ▼ $6.082B ▼
Q4-2025 $2.248B ▼ $12.368B ▼ $5.982B ▼ $6.386B ▼
Q3-2025 $3.155B ▲ $13.451B ▲ $6.039B ▲ $7.412B ▲
Q2-2025 $2.563B $13.136B $5.728B $7.408B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2026 $137M ▼ $130M ▲ $-68M ▲ $-429M ▲ $-370M ▲ $87M ▲
Q1-2026 $201M ▼ $17M ▼ $-89M ▼ $-568M ▲ $-618M ▲ $-55M ▼
Q4-2025 $254M ▼ $549M ▼ $214M ▲ $-1.411B ▼ $-640M ▼ $495M ▼
Q3-2025 $293M ▼ $1.176B ▲ $-62M ▼ $-504M ▼ $579M ▲ $1.126B ▲
Q2-2025 $294M $234M $-46M $-402M $-203M $184M

Revenue by Products

Product Q2-2025Q3-2025Q4-2025Q1-2026
Full game downloads net revenue
Full game downloads net revenue
 $470.00M ▲$450.00M ▼$370.00M ▼$230.00M ▼
Live services and other net revenue
Live services and other net revenue
 $1.31Bn ▲$1.28Bn ▼$1.46Bn ▲$1.38Bn ▼
Packaged goods net revenue
Packaged goods net revenue
 $240.00M ▲$150.00M ▼$70.00M ▼$60.00M ▼

Five-Year Company Overview

Income Statement

Income Statement EA’s income statement shows a mature, highly profitable business with modest growth rather than rapid expansion. Revenue has climbed meaningfully over the last several years but has been essentially flat recently, suggesting the company is in a consolidation phase after a strong run-up. Gross margins remain very high, which tells you EA still extracts a lot of value from each game and live service it sells. Operating profits and cash-style profits (like EBITDA) have trended upward over the five‑year period, but year‑to‑year earnings move around a bit. That volatility likely reflects game release timing, mix between new titles and ongoing live services, and some one‑off items rather than a structural problem. Overall, profitability is strong and durable, but top‑line acceleration is not obvious in the latest years.

Balance Sheet

Balance Sheet EA’s balance sheet is solid and fairly conservative. Total assets have edged down slightly from their peak, which is not unusual for a company returning cash to shareholders and managing its portfolio rather than aggressively building new physical assets. Cash levels have come down from very high pandemic-era peaks but still look comfortable. Debt is moderate and only slightly higher than a few years ago, leaving the company with a balanced but not over‑levered profile. Shareholders’ equity has slipped from earlier highs, which likely reflects share buybacks and capital returns rather than operational stress. Overall, EA appears financially sturdy, with no obvious balance sheet red flags.

Cash Flow

Cash Flow EA’s cash flow is a key strength. The company consistently turns its profits into cash, with strong operating cash flow across the period. Even in years where accounting earnings move around, cash generation remains healthy, which suggests good working capital discipline and the benefit of digital, high‑margin content. Free cash flow is robust and relatively stable, especially considering the cyclical nature of game launches. Capital spending needs are low compared with cash generated, reflecting the asset‑light, software‑driven model. This gives EA ample flexibility to fund game development, invest in new technologies, pursue acquisitions, and return cash to shareholders, all without stretching its finances.

Competitive Edge

Competitive Edge EA holds a powerful position in gaming, especially in sports. Its sports franchises, led by global football and American football titles, sit on top of long‑term, often exclusive licenses with major leagues. Those deals create high barriers for rivals who might want to build competing, fully licensed simulation games. This gives EA a semi‑monopoly feel in certain sports categories. Beyond sports, series like Battlefield, The Sims, and Star Wars titles give EA a diverse portfolio of recognizable brands. The shift to live services—especially modes like Ultimate Team—anchors players inside EA’s ecosystem and creates recurring, high‑margin revenue that many competitors envy. Risks do exist: dependence on a few mega‑franchises, licensing renewals, regulatory pressure on in‑game monetization, and fierce competition from other big publishers and platform owners. But overall, EA’s brand power, licenses, and entrenched player communities form a meaningful competitive moat.

Innovation and R&D

Innovation and R&D EA is leaning heavily into technology and content innovation to extend its lead. On the tech side, the proprietary Frostbite engine, advanced animation systems like Hypermotion and SAPIEN, and heavy use of AI and machine learning allow EA to build more realistic, dynamic worlds and do so more efficiently. These tools can shorten development cycles, enhance graphics and physics, and support massive live‑service environments. On the content side, EA has a deep pipeline: new entries in Dragon Age, Battlefield, The Sims, skateboarding, Iron Man, and multiple Star Wars projects. Many of these are being built from the ground up with live services, community features, and user‑generated content in mind. EA is also experimenting with cloud gaming and AI‑assisted development, which could expand reach and reduce costs over time, though the commercial payoff is still uncertain. The main execution risks are delays, quality issues in big launches, and shifting player tastes, but EA is clearly spending to stay at the forefront of game tech and design.

Summary

Overall, EA looks like a mature, high‑margin game publisher with a strong moat, steady cash generation, and a technology‑rich development platform. The income statement shows solid profitability with slower recent revenue growth. The balance sheet is healthy and not overly leveraged, and cash flow provides significant financial flexibility. Competitively, EA is anchored by long‑term sports licenses, powerful franchises, and sticky live services. Future performance will hinge on how well EA executes its upcoming slate of major titles, keeps its live services engaging, navigates regulation on in‑game monetization, and adapts to new technologies like AI and cloud gaming. The company appears well‑positioned, but as with all game publishers, success remains partly dependent on consistently delivering hits in a rapidly evolving market.

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