Upside case
Bull case
$344+70.1%
EA would need investors to value it at roughly 40x earnings — about 17x more generous than today's 24x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated Jun 18, 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
29 bullish · 0 bearish · 66 covering EA
Strong Buy
0
Buy
29
Hold
37
Sell
0
Strong Sell
0
Consensus Target
$173
-14.6% vs today
Scenario Range
$164 – $344
Model bear to bull value window
Coverage
66
Published analyst ratings
Valuation Context
23.5x
Forward P/E · Market cap $50.6B
EA price targets
Three scenarios for where EA stock could go
Current
~$202
Confidence
44 / 100
Updated
Jun 18, 2026
Where we are now
Current · $202
Bear
$164
Base
$261
Bull
$344
Market caseClosest to today
Base case
$261+29.1%
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
$164-18.6%
If investor confidence fades or macro conditions deteriorate, a 4x multiple contraction could push EA down roughly 19% 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
$50.6B
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
67%Exceptional
12 quarters tracked
Revenue Beat Rate
58%Exceptional
vs consensus estimates
Avg EPS Surprise
+13.7%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 2 of 4Q3 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
Q2 2026
EPS
$1.50/$2.39
Revenue
$1.9B/$2.0B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| 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% |
| Q2 2026 | $1.50/$2.39 | -37.2% | $1.9B/$2.0B | -5.7% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$8.0B
+6.7% YoY
FY2
$8.5B
+5.8% YoY
EPS Outlook
FY1
$5.42
+54.6% YoY
FY2
$5.80
+7.0% YoY
Trailing FCF (TTM)$2.3B
FCF Margin: 30.8%
Next Earnings
August 4, 2026
Expected EPS
$0.78
Expected Revenue
$1.5B
EA beat EPS estimates in 2 of 4 tracked quarters. Mixed delivery makes the upcoming report a key data point for re-rating.
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
Expensive versus peers
Fair value est. $58 — implies -71.1% from today's price.
Premium to Fair Value
71.1%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
EA
57.6x
vs
S&P 500
24.4x
+136% premium
vs Technology Trailing P/E
EA
57.6x
vs
Technology
29.0x
+99% premium
vs EA 5Y Avg P/E
Today
57.6x
vs
5Y Average
41.7x
+38% premium
Forward PE
23.5x
S&P 500
18.8x
+25%
Technology
22.3x
+6%
5Y Avg
—
—
Trailing PE
57.6x
S&P 500
24.4x
+136%
Technology
29.0x
+99%
5Y Avg
41.7x
+38%
PEG Ratio
14.02x
S&P 500
1.66x
+745%
Technology
1.51x
+831%
5Y Avg
—
—
EV/EBITDA
40.1x
S&P 500
15.2x
+163%
Technology
16.6x
+141%
5Y Avg
23.8x
+68%
Price/FCF
21.8x
S&P 500
20.7x
+5%
Technology
19.2x
+13%
5Y Avg
21.2x
+3%
Price/Sales
6.7x
S&P 500
3.1x
+117%
Technology
2.4x
+175%
5Y Avg
5.3x
+27%
Dividend Yield
0.37%
S&P 500
1.91%
-80%
Technology
1.11%
-66%
5Y Avg
0.52%
-29%
| Metric | EA | S&P 500 | Technology | 5Y Avg EA |
|---|---|---|---|---|
| Forward PE | 23.5x | 18.8x+25% | 22.3x | — |
| Trailing PE | 57.6x | 24.4x+136% | 29.0x+99% | 41.7x+38% |
| PEG Ratio | 14.02x | 1.66x+745% | 1.51x+831% | — |
| EV/EBITDA | 40.1x | 15.2x+163% | 16.6x+141% | 23.8x+68% |
| Price/FCF | 21.8x | 20.7x | 19.2x+13% | 21.2x |
| Price/Sales | 6.7x | 3.1x+117% | 2.4x+175% | 5.3x+27% |
| Dividend Yield | 0.37% | 1.91% | 1.11% | 0.52% |
EA trades above S&P 500 benchmarks on 5 of 6 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 — 14.7% ROIC signals a durable competitive advantage · returns 2.5% 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
+0.9%
Gross Margin
Gross profit as a share of revenue
79.0%
Operating Margin
Operating income divided by revenue
15.4%
Net Margin
Net income divided by revenue
11.8%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$3.51
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
14.7%
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
2.5%
Dividend
0.4%
Buyback
2.1%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$1.1B
Dividend / Share
Annualized trailing dividend per share
$0.75
Payout Ratio
Share of earnings distributed as dividends
21.5%
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 June 17, 2026
High Risk
Declining Game Engagement
Declining engagement in EA Sports FC and underperformance of Dragon Age highlight weakening player interest in key franchises.
High Risk
Revenue Guidance Reduction
The company has lowered its revenue guidance, signaling potential financial underperformance.
Medium
Structural Challenges
Persistent structural challenges may hinder long-term growth and operational efficiency.
High Risk
Take-Private Deal Risks
The $55 billion take-private deal led by Saudi Arabia's PIF introduces regulatory and execution risks.
Medium
Earnings Uncertainty
Upcoming earnings reports may reveal further weaknesses in financial performance.
Lower
Market Sentiment Volatility
Despite recent stock appreciation, bearish sentiment could resurface if risks materialize.
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 June 17, 2026
Global digital entertainment leader
EA is a global leader in digital interactive entertainment, focusing on building games and experiences that grow online communities around key franchises.
Strong franchise engagement
The company is deepening engagement through interactive storytelling connected to key intellectual property and scaling live services.
Growth in sports franchises
EA is experiencing growth in its annualized sports franchises, which are a significant part of its revenue stream.
Resilient stock performance
Despite previous bearish concerns, EA's stock has appreciated by ~46% as risks like declining Live Services revenues did not fully materialize.
Institutional ownership support
Top institutional holders like Vanguard Group (7.1%) provide stability and confidence in EA's long-term prospects.
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
$202.15
52W Range Position
95%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$146.97
+37.5% from the low
52-Week High
$204.89
-1.3% from the high
1 Month
+0.55%
3 Month
+0.77%
YTD
-1.1%
1 Year
+33.9%
3Y CAGR
+16.9%
5Y CAGR
+7.5%
10Y CAGR
+10.4%
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 21.9x median
+8% above peer median
Revenue Growth
+6.7%
vs +20.3% median
-67% below peer median
Net Margin
11.8%
vs -10.5% median
+212% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
EA EA Electronic Arts Inc. | $50.6B | 23.5x | +6.7% | 11.8% | Hold | -14.6% |
TTW TTWO Take-Two Interactive Software, Inc. | $44.4B | 35.6x | +22.2% | -4.5% | Buy | +20.1% |
PLT PLTK Playtika Holding Corp. | $1.3B | 8.1x | +6.0% | -10.5% | Hold | +0.3% |
GLX GLXG Galaxy Payroll Group Limited | $3M | — | — | 9.7% | — | — |
RBL RBLX Roblox Corporation | $36.9B | — | +35.0% | -20.7% | Buy | +65.2% |
NCT NCTY The9 Limited | $23M | — | +18.5% | -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 capital mainly through $1.1B/year in buybacks (2.1% buyback yield), with a modest 0.37% dividend — combining for 2.5% total shareholder yield.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
2.5%
Dividend + buyback return per year
Buyback Yield
2.1%
Dividend Yield
0.37%
Payout Ratio
21.5%
How EA Splits Its Return
Div 0.37%
Buyback 2.1%
Dividend 0.37%Buybacks 2.1%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.75
Growth Streak
Consecutive years of dividend increases
0Y
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
$1.1B
Estimated Shares Retired
5M
Approx. Share Reduction
2.1%
Shares Outstanding
Current diluted share count from the screening snapshot
250M
At 2.1%/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 | $0.38 | — | 2.1% | 2.4% |
| 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, 29 rate it Buy or Strong Buy, 37 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $173, implying -14.6% from the current price of $202. The bear case scenario is $164 and the bull case is $344.
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 (+3.9% from today), and the low-end target is $118 (-41.6%). The base case model target is $261.
03Is Electronic Arts Inc. (EA) stock overvalued in 2026?
EA trades at 23.5x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals expensive versus peers. 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) Declining Game Engagement — Declining engagement in EA Sports FC and underperformance of Dragon Age highlight weakening player interest in key franchises. (2) Revenue Guidance Reduction — The company has lowered its revenue guidance, signaling potential financial underperformance. (3) Take-Private Deal Risks — The $55 billion take-private deal led by Saudi Arabia's PIF introduces regulatory and execution risks. 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 $8.0B (+6.7% year-over-year) and EPS of $5.42 (+54.6% year-over-year) for the upcoming fiscal year. The following year, analysts project $8.5B in revenue.
06When does Electronic Arts Inc. (EA) report its next earnings?
Electronic Arts Inc. is expected to report its next earnings on approximately 2026-08-04. Consensus expects EPS of $0.78 and revenue of $1.5B. Over recent quarters, EA has beaten EPS estimates 67% 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 dividends (0.4% yield) and share repurchases ($1.1B TTM).