Electronic Arts Inc.EA
NasdaqGS•Communication Services•Electronic Gaming & Multimedia
Electronic Arts Inc. develops, markets, publishes, and delivers games, content, and services for game consoles, PCs, and mobile phones worldwide. It develops and publishes games and experiences across diverse genres, such as sports, racing, first-person shooter, action, role-playing, and simulation; and live services offerings, including extra content and subscription offerings through its global football and American football franchises, such as EA SPORTS College Football and EA SPORTS Madden NFL, as well as based on its IP comprising The Sims, Apex Legends, and Battlefield. The company markets and sells its games and services through digital distribution and retail channels; and directly to mass market retailers, specialty stores, and distribution arrangements. Electronic Arts Inc. was incorporated in 1982 and is headquartered in Redwood City, California.
as of March 2026
Are revenues and earnings expanding?
$7.53B in TTM revenue grew 0.9% YoY, reaching $2.12B last quarter. TTM EBITDA of $1.16B on operating income of $564.00M shows growth is flowing through. Net income of $887.00M TTM confirms the company is converting revenue into profit. Revenue is growing modestly — monitor for acceleration or deceleration.
Is revenue turning into profit effectively?
Op. margin of 26.6% is up 5.8% YoY — cost efficiency is improving. Net margin at 21.7%. ROE of 13.1% shows the company generates solid returns on shareholder equity.
Is the stock cheap or expensive?
At 57.0x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 6.7x and P/B of 7.5x provide additional context. The premium P/E is not backed by strong revenue growth — the stock may be overvalued.
Is the company financially stable?
Is the business self-funding?
FCF of $519.00M. The FCF / Net Income ratio of 0.6x indicates partial cash conversion — earnings quality needs attention. Cash reserves of $2.86B provide financial flexibility. Shares outstanding declined 2.7% YoY — buybacks are returning capital to shareholders.
Competitive analysis based on 67 quarters of fundamental data
Operating margins are positive at ~17.8% on average, but show some variability — pricing power may be sensitive to market conditions.
ROE averages 16.7% but has fluctuated — the competitive advantage may be cyclical or emerging.
Data-driven red flags and warnings across 67 quarters
Operating margins dropped 26.1% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.
FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.
Limited debt-to-equity data available.
TTM revenue has contracted 16.1% — significant decline indicating deteriorating demand.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 6.4% — net buybacks are reducing shares outstanding and boosting per-share value.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.