EA achieved a peak 83.9% gross margin in 2026Q4, though operating income remains constrained by persistent R&D expenses hovering near $700 million per quarter.
| Metric | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 | Mar'04 | Mar'03 | Mar'02 | Mar'01 | Mar'00 | Mar'99 | Mar'98 | Mar'97 |
|---|
| Sales/Revenue | 7.53B | 7.46B | 7.56B | 7.43B | 6.99B | 5.63B | 5.54B | 4.95B | 5.15B | 4.84B | 4.4B | 4.51B | 3.58B | 3.8B | 4.14B | 3.59B | 3.65B | 4.21B | 3.67B | 3.09B | 2.95B | 3.13B | 2.96B | 2.48B | 1.72B | 1.32B | 1.42B | 1.22B | 908.9M | 673M |
| Revenue Growth % | 0.91% | -1.31% | 1.83% | 6.22% | 24.2% | 1.66% | 11.86% | -3.88% | 6.3% | 10.21% | -2.64% | 26.29% | -5.85% | -8.35% | 15.44% | -1.78% | -13.25% | 14.92% | 18.57% | 4.74% | -5.69% | 5.82% | 19.14% | 43.91% | 30.43% | -6.88% | 16.21% | 34.44% | 35.05% | 26.53% |
| Cost of Goods Sold | 1.58B | 1.54B | 1.71B | 1.79B | 1.86B | 1.49B | 1.37B | 1.32B | 1.28B | 1.3B | 1.35B | 1.43B | 1.35B | 1.39B | 1.6B | 1.5B | 1.87B | 2.13B | 1.8B | 1.21B | 1.18B | 1.2B | 1.1B | 1.07B | 807.61M | 582.57M | 671.07M | 590.9M | 453.9M | 305.9M |
| COGS % of Revenue | 21.03% | 20.68% | 22.61% | 24.13% | 26.59% | 26.54% | 24.72% | 26.71% | 24.8% | 26.79% | 30.8% | 31.65% | 37.68% | 36.56% | 38.57% | 41.77% | 51.07% | 50.5% | 49.25% | 39.21% | 40.02% | 38.26% | 37.3% | 43.23% | 46.83% | 44.06% | 47.26% | 48.36% | 49.94% | 45.45% |
| Gross Profit | 5.95B | 5.92B | 5.85B | 5.63B | 5.13B | 4.13B | 4.17B | 3.63B | 3.87B | 3.55B | 3.04B | 3.09B | 2.23B | 2.41B | 2.54B | 2.09B | 1.79B | 2.08B | 1.86B | 1.88B | 1.77B | 1.93B | 1.85B | 1.41B | 917.06M | 739.7M | 748.94M | 631M | 455M | 367.1M |
| Gross Margin % | 78.97% | 79.32% | 77.39% | 75.87% | 73.41% | 73.46% | 75.28% | 73.29% | 75.2% | 73.21% | 69.2% | 68.35% | 62.32% | 63.44% | 61.43% | 58.23% | 48.93% | 49.5% | 50.75% | 60.79% | 59.98% | 61.75% | 62.7% | 56.77% | 53.17% | 55.94% | 52.74% | 51.64% | 50.06% | 54.55% |
| Gross Profit Growth % | 0.46% | 1.16% | 3.87% | 9.78% | 24.11% | -0.79% | 14.88% | -6.33% | 9.19% | 16.6% | -1.43% | 38.51% | -7.51% | -5.34% | 21.77% | 16.89% | -14.24% | 12.1% | -1.01% | 6.16% | -8.39% | 4.21% | 31.58% | 53.64% | 23.98% | -1.23% | 18.69% | 38.68% | 23.94% | 33.88% |
| Operating Expenses | 4.79B | 4.4B | 4.33B | 4.3B | 4B | 3.09B | 2.72B | 2.63B | 2.44B | 2.32B | 2.14B | 2.14B | 2.19B | 2.29B | 2.51B | 2.4B | 2.47B | 2.91B | 2.35B | 1.84B | 1.45B | 1.26B | 1.08B | 953M | 781.63M | 770.01M | 588.61M | 481.6M | 359.2M | 304.4M |
| OpEx % of Revenue | 63.54% | 58.96% | 57.31% | 57.93% | 57.26% | 54.88% | 49.18% | 53.17% | 47.36% | 47.95% | 48.77% | 47.35% | 61.4% | 60.26% | 60.58% | 66.93% | 67.71% | 69.14% | 64.04% | 59.53% | 48.97% | 40.36% | 36.46% | 38.4% | 45.32% | 58.23% | 41.45% | 39.41% | 39.52% | 45.23% |
| Selling, General & Admin | 1.89B | 1.71B | 1.71B | 1.71B | 1.63B | 1.28B | 1.14B | 1.16B | 1.11B | 1.11B | 1.03B | 1.03B | 1.09B | 1.14B | 1.23B | 1.05B | 1.05B | 1.02B | 927M | 754M | 646M | 612M | 555.29M | 463.31M | 348.17M | 289.38M | 281.13M | 239M | 186.1M | 127.3M |
| SG&A % of Revenue | 25.11% | 22.87% | 22.61% | 22.96% | 23.37% | 22.76% | 20.53% | 23.47% | 21.55% | 22.95% | 23.38% | 22.88% | 30.49% | 30.08% | 29.64% | 29.2% | 28.74% | 24.29% | 25.29% | 24.39% | 21.89% | 19.56% | 18.78% | 18.67% | 20.19% | 21.88% | 19.8% | 19.56% | 20.48% | 18.92% |
| Research & Development | 2.83B | 2.57B | 2.42B | 2.33B | 2.19B | 1.78B | 1.56B | 1.43B | 1.32B | 1.21B | 1.11B | 1.09B | 1.13B | 1.15B | 1.18B | 1.12B | 1.23B | 1.36B | 1.15B | 1.04B | 758M | 633M | 511M | 401M | 387.74M | 388.93M | 260.76M | 202.1M | 146.2M | 130.8M |
| R&D % of Revenue | 37.55% | 34.42% | 32% | 31.35% | 31.27% | 31.59% | 28.16% | 28.95% | 25.63% | 24.87% | 25.23% | 24.23% | 31.47% | 30.37% | 28.48% | 31.32% | 33.63% | 32.27% | 31.24% | 33.68% | 25.69% | 20.23% | 17.28% | 16.16% | 22.48% | 29.41% | 18.36% | 16.54% | 16.09% | 19.44% |
| Other Operating Expenses | 66M | 124M | 204M | 269M | 183M | 30M | 27M | 37M | 9M | 6M | 7M | 11M | -20M | -7M | 70M | 201M | 195M | 530M | 275M | 45M | 41M | 18M | 12M | 89M | 45.72M | 91.71M | 46.73M | 40.5M | 26.9M | 23M |
| Operating Income | 1.16B | 1.52B | 1.52B | 1.33B | 1.13B | 1.05B | 1.45B | 996M | 1.43B | 1.22B | 898M | 948M | 33M | 121M | 35M | -312M | -686M | -827M | -487M | 39M | 325M | 669M | 776M | 456M | 135.44M | -30.32M | 160.32M | 149.4M | 95.8M | 62.7M |
| Operating Margin % | 15.43% | 20.37% | 20.07% | 17.94% | 16.15% | 18.58% | 26.1% | 20.12% | 27.84% | 25.26% | 20.43% | 21% | 0.92% | 3.19% | 0.84% | -8.69% | -18.77% | -19.63% | -13.29% | 1.26% | 11.01% | 21.38% | 26.24% | 18.37% | 7.85% | -2.29% | 11.29% | 12.23% | 10.54% | 9.32% |
| Operating Income Growth % | -23.55% | 0.13% | 13.96% | 17.98% | 7.94% | -27.61% | 45.08% | -30.54% | 17.16% | 36.3% | -5.27% | 2772.73% | -72.73% | 245.71% | 111.22% | 54.52% | 17.05% | -69.82% | -1348.72% | -88% | -51.42% | -13.79% | 70.18% | 236.68% | 546.76% | -118.91% | 7.31% | 55.95% | 52.79% | 17.2% |
| EBITDA | 1.23B | 1.88B | 1.92B | 1.87B | 1.61B | 1.23B | 1.59B | 1.14B | 1.57B | 1.4B | 1.09B | 1.17B | 260M | 385M | 251M | -132M | -494M | -629M | -323M | 186M | 420M | 744M | 854M | 548M | 246.34M | 39.35M | 207.05M | 189.9M | 122.7M | 85.7M |
| EBITDA Margin % | 16.31% | 25.14% | 25.42% | 25.15% | 23.1% | 21.8% | 28.81% | 23.05% | 30.49% | 28.81% | 24.91% | 25.87% | 7.27% | 10.14% | 6.06% | -3.68% | -13.52% | -14.93% | -8.81% | 6.02% | 14.23% | 23.78% | 28.88% | 22.08% | 14.28% | 2.98% | 14.58% | 15.54% | 13.5% | 12.73% |
| EBITDA Growth % | -34.54% | -2.39% | 2.89% | 15.67% | 31.62% | -23.07% | 39.79% | -27.32% | 12.46% | 27.49% | -6.25% | 349.23% | -32.47% | 53.39% | 290.15% | 73.28% | 21.46% | -94.74% | -273.66% | -55.71% | -43.55% | -12.88% | 55.84% | 122.46% | 525.99% | -80.99% | 9.03% | 54.77% | 43.17% | 23.49% |
| D&A (Non-Cash Add-back) | 66M | 356M | 404M | 536M | 486M | 181M | 150M | 145M | 136M | 172M | 197M | 220M | 227M | 264M | 216M | 180M | 192M | 198M | 164M | 147M | 95M | 75M | 78M | 92M | 110.9M | 69.67M | 46.73M | 40.5M | 26.9M | 23M |
| EBIT | 1.16B | 1.66B | 1.65B | 1.38B | 1.14B | 1.06B | 1.55B | 1.12B | 1.49B | 1.25B | 902M | 953M | 37M | 168M | 38M | -278M | -544M | -355M | -246M | 57M | 359M | 684M | 785M | 471M | 155.74M | 39.35M | 160.32M | 149.4M | 95.8M | 62.7M |
| Net Interest Income | 0 | 67M | 68M | -9M | -54M | -21M | 56M | 43M | 6M | -22M | -13M | -21M | -25M | -23M | -11M | 8M | 6M | 48M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 125M | 126M | 49M | 4M | 24M | 100M | 88M | 50M | 25M | 15M | 10M | 5M | 6M | 9M | 9M | 10M | 48M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 58M | 58M | 58M | 58M | 45M | 44M | 45M | 44M | 47M | 28M | 31M | 30M | 29M | 20M | 1M | 4M | 0 | 0 | 0 | 0 | 0 | 0 | 5.45M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 18M | 85M | 71M | -6M | -48M | -29M | 63M | 83M | 15M | -14M | -21M | -23M | -26M | 18M | -17M | 33M | -20M | -28M | -20M | 99M | 64M | 56M | 21M | 5M | 12.85M | 15.07M | 9.07M | -31.1M | 12.6M | 14.6M |
| Pretax Income | 1.18B | 1.6B | 1.59B | 1.33B | 1.08B | 1.02B | 1.51B | 1.08B | 1.45B | 1.21B | 877M | 925M | 7M | 139M | 18M | -279M | -706M | -855M | -507M | 138M | 389M | 725M | 796.56M | 460.15M | 148.29M | -15.24M | 169.39M | 118.3M | 108.4M | 80.2M |
| Pretax Margin % | 15.67% | 21.51% | 21.01% | 17.86% | 15.46% | 18.07% | 27.23% | 21.8% | 28.14% | 24.97% | 19.95% | 20.49% | 0.2% | 3.66% | 0.43% | -7.77% | -19.32% | -20.3% | -13.83% | 4.46% | 13.18% | 23.17% | 26.94% | 18.54% | 8.6% | -1.15% | 11.93% | 9.68% | 11.93% | 11.92% |
| Income Tax | 293M | 484M | 316M | 524M | 292M | 180M | -1.53B | 60M | 406M | 243M | -279M | 50M | -1M | 41M | -58M | -3M | -29M | 233M | -53M | 66M | 147M | 221M | 219.27M | 143.05M | 45.97M | -4.16M | 52.64M | 45.4M | 35.8M | 27.2M |
| Effective Tax Rate % | 24.83% | 30.16% | 19.89% | 39.52% | 27.01% | 17.7% | -101.53% | 5.56% | 28.02% | 20.08% | -31.81% | 5.41% | -14.29% | 29.5% | -322.22% | 1.08% | 4.11% | -27.25% | 10.45% | 47.83% | 37.79% | 30.48% | 27.53% | 31.09% | 31% | 27.31% | 31.08% | 38.38% | 33.03% | 33.92% |
| Net Income | 887M | 1.12B | 1.27B | 802M | 789M | 837M | 3.04B | 1.02B | 1.04B | 967M | 1.16B | 875M | 8M | 98M | 76M | -276M | -677M | -1.09B | -454M | 76M | 236M | 504M | 577M | 317M | 101.51M | -11.08M | 116.75M | 72.9M | 72.6M | 51.3M |
| Net Margin % | 11.78% | 15.02% | 16.83% | 10.8% | 11.29% | 14.87% | 54.89% | 20.59% | 20.25% | 19.96% | 26.3% | 19.38% | 0.22% | 2.58% | 1.83% | -7.69% | -18.53% | -25.83% | -12.39% | 2.46% | 8% | 16.11% | 19.51% | 12.77% | 5.89% | -0.84% | 8.22% | 5.97% | 7.99% | 7.62% |
| Net Income Growth % | -20.87% | -11.94% | 58.73% | 1.65% | -5.73% | -72.46% | 198.23% | -2.3% | 7.86% | -16.35% | 32.11% | 10837.5% | -91.84% | 28.95% | 127.54% | 59.23% | 37.78% | -139.65% | -697.37% | -67.8% | -53.17% | -12.65% | 82.02% | 212.29% | 1015.98% | -109.49% | 60.15% | 0.41% | 41.52% | 26.67% |
| Net Income (Continuing) | 887M | 1.12B | 1.27B | 802M | 789M | 837M | 3.04B | 1.02B | 1.04B | 967M | 1.16B | 875M | 8M | 98M | 76M | -276M | -677M | -1.09B | -454M | 76M | 242M | 504M | 577M | 317M | 101.51M | -11.08M | 116.75M | 72.9M | 72.6M | 51.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 12M | 11M | 0 | 3.92M | 3.1M | 4.54M | 3.62M | 2.7M | 0 | 0 |
| EPS (Diluted) | 3.51 | 4.23 | 4.68 | 2.88 | 2.76 | 2.87 | 10.30 | 3.33 | 3.34 | 3.08 | 3.50 | 2.69 | 0.03 | 0.31 | 0.23 | -0.84 | -2.08 | -3.40 | -1.45 | 0.24 | 0.75 | 1.59 | 1.87 | 1.08 | 0.36 | -0.04 | 0.44 | 0.29 | 0.30 | 0.22 |
| EPS Growth % | -17.02% | -9.62% | 62.5% | 4.35% | -3.83% | -72.14% | 209.31% | -0.3% | 8.44% | -12% | 30.11% | 8866.67% | -90.32% | 34.78% | 127.38% | 59.62% | 38.82% | -134.48% | -704.17% | -68% | -52.83% | -14.97% | 73.15% | 200% | 997.76% | -109.11% | 51.72% | -3.33% | 36.36% | 15.79% |
| EPS (Basic) | 3.55 | 4.28 | 4.71 | 2.90 | 2.78 | 2.90 | 10.37 | 3.36 | 3.39 | 3.19 | 3.73 | 2.81 | 0.03 | 0.32 | 0.23 | -0.84 | -2.08 | -3.40 | -1.45 | 0.25 | 0.78 | 1.65 | 1.95 | 1.17 | 0.46 | -0.04 | 0.47 | 0.30 | 0.31 | 0.23 |
| Diluted Shares Outstanding | 253M | 264M | 272M | 278M | 286M | 292M | 295M | 306M | 312M | 314M | 330M | 325M | 316M | 313M | 336M | 330M | 325M | 320M | 314M | 317M | 314M | 318M | 308M | 293M | 286.28M | 276.14M | 265.48M | 253.09M | 243.83M | 238.6M |
| Basic Shares Outstanding | 250M | 262M | 270M | 277M | 284M | 289M | 293M | 303M | 308M | 303M | 310M | 311M | 308M | 310M | 331M | 330M | 325M | 320M | 314M | 308M | 304M | 305M | 295M | 282M | 273.66M | 274.84M | 251.32M | 242.99M | 235.47M | 228M |
| Dividend Payout Ratio | 21.53% | 17.75% | 16.1% | 26.18% | 24.46% | 11.71% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 0.52% | - | - | - | - | - | - | - |
Regulatory loot box scrutiny
According to recent financial disclosures, EA's revenue growth has fluctuated significantly, peaking at 11.1% in 2026Q4 while experiencing a 9.2% contraction in 2026Q2, reflecting the inherent seasonality of the gaming industry and the transition toward a recurring live services model that remains sensitive to release cycles.
The revenue trajectory appears inconsistent, suggesting that the company remains tethered to the timing of major title launches despite its strategic pivot toward live services. Investors should monitor whether the recent growth in 2026Q4 represents a sustainable shift in engagement or merely a temporary benefit from specific content updates.
As reported in quarterly filings, EA maintains a robust gross margin profile that reached 83.9% in 2026Q4, demonstrating the company's ability to leverage digital distribution channels to mitigate the rising costs associated with the content treadmill required to sustain its high-engagement live service ecosystems.
The structural shift toward direct-to-consumer digital sales appears to be the primary driver of these elevated margins, effectively insulating the firm from physical retail overhead. However, the periodic compression observed in quarters like 2026Q3 suggests that development complexity and royalty obligations may periodically challenge this efficiency.
Based on the provided income statement data, EA's operating income has struggled to scale proportionally with gross profit, as R&D expenses consistently hover near $700 million per quarter, indicating that the firm is reinvesting heavily to maintain its competitive moat in a saturated digital gaming market.
The lack of significant operating leverage suggests that the cost of maintaining AAA-quality live services is rising, potentially limiting margin expansion despite top-line growth. This high fixed-cost structure warrants further investigation into whether current R&D spending is yielding sufficient returns in player retention and long-term monetization.
Analysis of recent SEC filings reveals that EA's net income is subject to significant volatility, with stock-based compensation reaching $330 million in 2026Q4, a figure that materially impacts the quality of reported earnings and suggests a reliance on equity-based incentives to retain specialized engineering talent.
The substantial fluctuation in SBC expenses appears to mask the underlying operational performance, making it difficult to assess the true cash-generating capacity of the business. Investors should be cautious of these non-cash charges, as they represent a meaningful dilution of shareholder value that is not always captured in headline EPS figures.
While EA's transition to a recurring revenue model is often cited as a strength, the recent softness in non-sports live services suggests that the company's growth may be more fragile than the market assumes, particularly as player fatigue begins to impact high-margin microtransaction volumes across key titles.
The reliance on a few core franchises for the majority of recurring revenue creates a concentration risk that could lead to significant earnings volatility if player engagement wanes. A potential short-seller narrative might focus on the diminishing returns of the current live service model and the high cost of acquiring new users in an increasingly competitive landscape.
Quick answers to the most common questions about buying EA stock.
For fiscal year 2026, Electronic Arts Inc. (EA) reported total revenue of $7.53B. This represents a 1019.0% increase compared to $673.0M in 1997.
Electronic Arts Inc. (EA) is profitable, generating $887.0M in net income for the fiscal year ending 2026 with a net profit margin of 11.8%.
Electronic Arts Inc. (EA) reported an operating income of $1.16B, resulting in an operating profit margin of 15.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Electronic Arts Inc. (EA) generated $5.95B in gross profit for the year, representing a gross profit margin of 79.0%. This demonstrates the company's core pricing power and production efficiency.