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.
Electronic Arts Inc. (EA) reported trailing twelve months revenue of $7.53B as of March 2026, a 0.9% increase year-over-year. Quarterly revenue reached $2.10B, reflecting continued top-line momentum.
Electronic Arts Inc. generated $887.00M in TTM net income, with quarterly EBITDA of $372.00M. The operating margin expanded from 20.8% to 25.7%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (25.7%) and net margin (21.9%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 13.4% a year ago, signaling stronger bottom-line efficiency.
EA trades at a P/E of 57.8x (a premium multiple) and a P/S of 6.8x. The price-to-book ratio of 7.6x indicates a significant premium over book value.
The company generated $519.00M in free cash flow over the trailing twelve months, a 4.8% increase year-over-year, indicating cash generation ability. The balance sheet shows $13.13B in total assets with no in long-term debt against $6.76B in stockholders equity. Data based on the most recent quarterly reports.
Competitive analysis based on 21 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 is positive at ~14.7% on average, adequate but below the threshold typically associated with wide moats.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
Revenue shows resilience with 5 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.
Data-driven red flags and warnings across 21 quarters
Operating margins dropped 25.8% 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.
D/E ratio is 0.2 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 5.6% — net buybacks are reducing shares outstanding and boosting per-share value.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation