Upside case
Bull case
$365+80.9%
EA would need investors to value it at roughly 42x earnings — about 19x more generous than today's 23x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated May 1, 2026
Electronic Arts Inc. (EA) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
66
analysts
30 bullish · 0 bearish · 66 covering EA
Strong Buy
0
Buy
30
Hold
36
Sell
0
Strong Sell
0
Consensus Target
$173
-14.3% vs today
Scenario Range
$144 – $365
Model bear to bull value window
Coverage
66
Published analyst ratings
Valuation Context
23.5x
Forward P/E · Market cap $50.4B
EA price targets
Three scenarios for where EA stock could go
Current
~$202
Confidence
56 / 100
Updated
May 1, 2026
Where we are now
Current · $202
Bear
$144
Base
$253
Bull
$365
Market caseClosest to today
Base case
$253+25.7%
At 30x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$144-28.4%
If investor confidence fades or macro conditions deteriorate, a 7x multiple contraction could push EA down roughly 28% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Electronic Arts Inc.
EA · NASDAQTechnologyElectronic Gaming & MultimediaMarch year-end
Electronic Arts is a leading video game publisher that develops and distributes interactive entertainment across consoles, PCs, and mobile devices. It generates revenue primarily through game sales—both physical and digital—and live services including in-game purchases and subscriptions, with its EA Sports titles and live service games like Apex Legends driving recurring income. The company's competitive moat lies in its portfolio of iconic, long-running franchises—such as FIFA (now EA Sports FC), Madden NFL, The Sims, and Battlefield—which create powerful network effects and brand loyalty.
Market Cap
$50.4B
Revenue TTM
$7.5B
Net Income TTM
$887M
Net Margin
11.8%
EA Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
75%Exceptional
12 quarters tracked
Revenue Beat Rate
67%Exceptional
vs consensus estimates
Avg EPS Surprise
+19.7%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 3 of 4Q2 2025
EPS
$1.54/$1.05
Revenue
$1.9B/$1.6B
Q3 2025
EPS
$0.25/$0.11
Revenue
$1.7B/$1.2B
Q4 2025
EPS
$1.21/$1.30
Revenue
$1.8B/$1.9B
Q1 2026
EPS
$4.82/$4.72
Revenue
$3.0B/$2.9B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $1.54/$1.05 | +46.7% | $1.9B/$1.6B | +21.3% |
| Q3 2025 | $0.25/$0.11 | +125.8% | $1.7B/$1.2B | +34.2% |
| Q4 2025 | $1.21/$1.30 | -6.9% | $1.8B/$1.9B | -1.9% |
| Q1 2026 | $4.82/$4.72 | +2.1% | $3.0B/$2.9B | +4.2% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$7.7B
+4.9% YoY
FY2
$7.8B
+1.3% YoY
EPS Outlook
FY1
$5.16
+91.9% YoY
FY2
$5.32
+3.1% YoY
Trailing FCF (TTM)$2.3B
FCF Margin: 30.8%
Next Earnings
May 6, 2026
Expected EPS
$2.39
Expected Revenue
$2.0B
EA beat EPS estimates in 3 of 4 tracked quarters. A strong delivery record supports forward estimate credibility.
EA Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $7.5B
Product Mix
Latest annual revenue by segment or product family
Live services and other, net revenue
73.2%
-1.6% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
International
58.8%
-3.9% YoY
Tap, hover, or focus a slice to inspect segment detail.
Live services and other, net revenue is the largest disclosed segment at 73.2% of FY 2025 revenue, down 1.6% YoY.
International is the largest reported region at 58.8%, down 3.9% YoY.
EA Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Overvalued
Fair value est. $157 — implies -22.5% from today's price.
Premium to Fair Value
22.5%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
EA
—
vs
S&P 500
25.1x
Benchmark unavailable
vs Technology Trailing P/E
EA
—
vs
Technology
26.7x
Benchmark unavailable
vs EA 5Y Avg P/E
Today
—
vs
5Y Average
37.5x
Benchmark unavailable
Forward PE
23.5x
S&P 500
19.1x
+23%
Technology
22.1x
+6%
5Y Avg
—
—
Trailing PE
—
S&P 500
25.1x
—
Technology
26.7x
—
5Y Avg
37.5x
—
PEG Ratio
—
S&P 500
1.72x
—
Technology
1.52x
—
5Y Avg
—
—
EV/EBITDA
53.7x
S&P 500
15.2x
+253%
Technology
17.5x
+208%
5Y Avg
19.6x
+175%
Price/FCF
21.7x
S&P 500
21.1x
+3%
Technology
19.5x
+11%
5Y Avg
20.9x
+4%
Price/Sales
6.7x
S&P 500
3.1x
+114%
Technology
2.4x
+174%
5Y Avg
4.9x
+37%
Dividend Yield
—
S&P 500
1.87%
—
Technology
1.16%
—
5Y Avg
0.56%
—
| Metric | EA | S&P 500 | Technology | 5Y Avg EA |
|---|---|---|---|---|
| Forward PE | 23.5x | 19.1x+23% | 22.1x | — |
| Trailing PE | — | 25.1x | 26.7x | 37.5x |
| PEG Ratio | — | 1.72x | 1.52x | — |
| EV/EBITDA | 53.7x | 15.2x+253% | 17.5x+208% | 19.6x+175% |
| Price/FCF | 21.7x | 21.1x | 19.5x+11% | 20.9x |
| Price/Sales | 6.7x | 3.1x+114% | 2.4x+174% | 4.9x+37% |
| Dividend Yield | — | 1.87% | 1.16% | 0.56% |
EA trades above S&P 500 benchmarks on 3 of 4 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolEA Financial Health
Verdict
Strong
EA generates $2.3B in free cash flow at a 30.8% margin — 14.6% ROIC signals a durable competitive advantage · returns 1.5% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$7.5B
Revenue Growth
TTM vs prior year
+1.1%
Gross Margin
Gross profit as a share of revenue
78.7%
Operating Margin
Operating income divided by revenue
15.7%
Net Margin
Net income divided by revenue
11.8%
EPS (TTM)
Diluted earnings per share, trailing twelve months
—
Free Cash Flow (TTM)
Cash generation after capex
$2.3B
FCF Margin
FCF as share of revenue — the primary cash quality signal
30.8%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
14.6%
ROA
Return on assets, trailing twelve months
7.1%
Cash & Equivalents
Liquid assets on the balance sheet
$2.9B
Net Cash
Cash exceeds total debt — no net leverage
$1.4B
Debt Serviceability
Net debt as a multiple of annual free cash flow
Net cash ✓
ROE
Return on equity, trailing twelve months
14.2%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
1.5%
Dividend
—
Buyback
1.5%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$769M
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Declining as buybacks retire shares
250M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageEA Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 11, 2026
High Risk
Financial & Debt Burden
EA’s $55 billion leveraged buyout has saddled the company with substantial debt, increasing interest and principal payments. The higher debt servicing costs could constrain capital allocation, reduce risk‑taking, and force a focus on steady cash flows over long‑term innovation.
High Risk
Technology & Innovation
Repeated development delays have eroded revenue and raised expenses, while the rapid pace of gaming technology demands continuous innovation. Failure to adopt new technologies or integrate artificial intelligence could leave EA’s titles behind competitors and hurt financial results.
Medium
Legal & Regulatory
EA faces lawsuits over loot‑box mechanics, with several U.S. states considering bans that could restrict or prohibit such in‑game purchases. Additional consumer‑protection and data‑privacy regulations, especially concerning children’s data, add to the regulatory burden.
Medium
Cybersecurity
The 2021 source‑code theft incident highlighted vulnerabilities that could compromise intellectual property and operational integrity. Ongoing cyber threats pose risks to EA’s proprietary assets and could disrupt game development and live‑service operations.
Medium
Competition & Market Dynamics
EA’s reliance on a handful of flagship franchises exposes it to shifts in consumer preferences and technology trends. Intense competition for talent and the need to continuously refresh titles could erode market share and revenue streams.
Medium
Operational & Strategic
Live‑service modes such as Ultimate Team are material to EA’s earnings; any decline in player engagement or licensing challenges for sports leagues could disproportionately impact financial results. Acquisitions and strategic transactions also carry integration and operational risks.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why EA Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 11, 2026
Live Services Dominance
EA's live services generated 73% of its net revenue in fiscal year 2024, underscoring the company's recurring revenue strength. The high percentage of live services revenue indicates a resilient business model that can sustain growth even as new titles launch.
Strong Game Pipeline & Event Catalysts
Upcoming releases such as "Skate" and "Battlefield" are set to expand EA's portfolio, while ongoing support for titles like "Apex Legends" and "EA SPORTS FC" maintains player engagement. Major sporting events, notably the 2026 World Cup, are expected to further boost player activity and net bookings.
AI-Driven Development & Cost Discipline
EA is integrating AI into its development processes to accelerate production and reduce costs. Coupled with tight cost controls, share buybacks, and disciplined expense management, these measures are projected to lift profit margins and earnings.
Robust Financial Momentum
In the third fiscal quarter ended December 31, 2025, EA reported net revenue of $1.901 billion and net bookings of $3.046 billion, a 38% year-over-year increase. The company also declared a quarterly cash dividend of $0.19 per share, reflecting healthy cash flow.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
EA Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$201.57
52W Range Position
95%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$141.19
+42.8% from the low
52-Week High
$204.89
-1.6% from the high
1 Month
-1.27%
3 Month
+1.84%
YTD
-1.4%
1 Year
+30.3%
3Y CAGR
+17.1%
5Y CAGR
+7.9%
10Y CAGR
+12.5%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
EA vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
23.5x
vs 32.2x median
-27% below peer median
Revenue Growth
+4.9%
vs +27.4% median
-82% below peer median
Net Margin
11.8%
vs -20.7% median
+157% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
EA EA Electronic Arts Inc. | $50.4B | 23.5x | +4.9% | 11.8% | Hold | -14.3% |
TTW TTWO Take-Two Interactive Software, Inc. | $46.6B | 57.2x | +5.8% | -60.4% | Buy | +30.5% |
PLT PLTK Playtika Holding Corp. | $1.4B | 7.3x | +4.4% | -7.5% | Hold | +3.0% |
GLX GLXG Galaxy Payroll Group Limited | $2M | — | — | 9.7% | — | — |
RBL RBLX Roblox Corporation | $31.5B | — | +49.0% | -20.7% | Buy | +101.7% |
NCT NCTY The9 Limited | $26M | — | +511.9% | -78.9% | Sell | — |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
EA Dividend and Capital Return
EA returns 1.5% annually — null% through dividends and 1.5% through buybacks.
Dividend UnknownFCF Unknown
Total Shareholder Yield
1.5%
Dividend + buyback return per year
Buyback Yield
1.5%
Dividend Yield
—
Payout Ratio
—
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.76
Growth Streak
Consecutive years of dividend increases
1Y
3Y Div CAGR
0.9%
5Y Div CAGR
34.9%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$769M
Estimated Shares Retired
4M
Approx. Share Reduction
1.5%
Shares Outstanding
Current diluted share count from the screening snapshot
250M
At 1.5%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.19 | — | — | — |
| 2025 | $0.76 | 0.0% | 6.6% | 7.1% |
| 2024 | $0.76 | 0.0% | 3.6% | 4.2% |
| 2023 | $0.76 | +2.7% | 3.9% | 4.5% |
| 2022 | $0.74 | +8.8% | 3.6% | 4.1% |
FAQ
7 questionsEA Investor Questions
Common questions answered from live analyst data and company financials.
01Is Electronic Arts Inc. (EA) stock a buy or sell in 2026?
Electronic Arts Inc. (EA) is rated Hold by Wall Street analysts as of 2026. Of 66 analysts covering the stock, 30 rate it Buy or Strong Buy, 36 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $173, implying -14.3% from the current price of $202. The bear case scenario is $144 and the bull case is $365.
02What is the EA stock price target for 2026?
The Wall Street consensus price target for EA is $173 based on 66 analyst estimates. The high-end target is $210 (+4.2% from today), and the low-end target is $118 (-41.5%). The base case model target is $253.
03Is Electronic Arts Inc. (EA) stock overvalued in 2026?
EA trades at 23.5x times forward earnings. Based on current multiples versus the peer group, the relative model signals overvalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Electronic Arts Inc. (EA) stock in 2026?
The primary risks for EA in 2026 are: (1) Financial & Debt Burden — EA’s $55 billion leveraged buyout has saddled the company with substantial debt, increasing interest and principal payments. (2) Technology & Innovation — Repeated development delays have eroded revenue and raised expenses, while the rapid pace of gaming technology demands continuous innovation. (3) Legal & Regulatory — EA faces lawsuits over loot‑box mechanics, with several U. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Electronic Arts Inc.'s revenue and earnings forecast?
Analyst consensus estimates EA will report consensus revenue of $7.7B (+4.9% year-over-year) and EPS of $5.16 (+91.9% year-over-year) for the upcoming fiscal year. The following year, analysts project $7.8B in revenue.
06When does Electronic Arts Inc. (EA) report its next earnings?
Electronic Arts Inc. is expected to report its next earnings on approximately 2026-05-06. Consensus expects EPS of $2.39 and revenue of $2.0B. Over recent quarters, EA has beaten EPS estimates 75% of the time.
07How much free cash flow does Electronic Arts Inc. generate?
Electronic Arts Inc. (EA) generated $2.3B in free cash flow over the trailing twelve months — a free cash flow margin of 30.8%. EA returns capital to shareholders through and share repurchases ($769M TTM).