AI Takeaway
EA's FY2026 revenue grew modestly to $7.53B (+0.9% YoY), but operating income fell sharply by 23.6% to $1.16B, reflecting rising costs and margin compression, even as operating cash flow surged 22.8% to $2.55B.
Revenue
$7.53B
++0.91% YoY
EPS (Basic)
$3.55
-17.06% YoY
Gross Margin
79.0%
-0.36% YoY
Operating Income
$1.16B
-23.55% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
EA reported total revenue of $7.53B in FY2026, up just 0.9% from $7.46B in FY2025, suggesting limited top-line momentum despite the company's broad gaming portfolio.
Source: Source: 10-K Income Statement
Operating income dropped 23.6% YoY to $1.16B from $1.52B, with operating margin compressing nearly 5 percentage points to 15.4%, indicating meaningful cost increases outpacing revenue growth.
Source: Source: 10-K Income Statement
Cost of revenue rose 2.7% YoY to $1.58B, growing faster than revenue, which contributed to gross margin slipping slightly from 79.3% to 79.0%, reflecting modest but notable cost pressure.
Source: Source: 10-K Income Statement
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Upgrade to unlockEA's operating margin fell from 20.4% to 15.4% in FY2026, a decline of nearly 5 percentage points. If cost growth continues to outpace revenue, profitability could deteriorate further, pressuring earnings and shareholder returns.
Source: Source: 10-K Income Statement
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Upgrade to unlockReported EPS of $1.59 versus the $2.49 analyst consensus — a -36.0% miss for FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $7.53B | $7.46B | +0.91% |
Cost of Revenue | $1.58B | $1.54B | +2.66% |
Gross Profit | $5.95B | $5.92B | +0.46% |
Operating Income | $1.16B | $1.52B | -23.55% |
Net Income | $887M | $1.12B | -20.87% |
EPS (Basic) | $3.55 | $4.28 | -17.06% |
EPS (Diluted) | $3.51 | $4.25 | -17.41% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $13.13B | $12.37B | +6.17% |
Current Assets | $3.97B | $3.28B | +21.28% |
Total Liabilities | $6.37B | $5.98B | +6.44% |
Current Liabilities | $3.8B | $3.46B | +9.77% |
Stockholders' Equity | $6.76B | $6.39B | +5.92% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.55B | $2.08B | +22.80% |
Investing Cash Flow | $-276M | $37M | -845.95% |
Financing Cash Flow | $-1.57B | $-2.86B | +45.23% |
Dividends Paid | $191M | $199M | -4.02% |
Share Buybacks | $769M | $2.51B | -69.34% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 79.0% | 79.3% | -0.36% |
Operating Margin | 15.4% | 20.4% | -4.94% |
Net Margin | 11.8% | — | — |
ROE | 13.1% | — | — |
ROA | 6.8% | — | — |
Current Ratio | $1.046 | — | — |
Debt to Equity | $0.941 | — | — |
Other companies in Interactive Home Entertainment
EA's FY2026 10-K showed revenue of $7.53B (+0.9% YoY), but operating income fell sharply by 23.6% to $1.16B due to rising costs. The bright spot was operating cash flow, which surged 22.8% to $2.55B, well above net income of $887M.
EA's diluted EPS fell 17.4% YoY to $3.51 from $4.25, primarily because net income declined 20.9% to $887M as operating expenses grew faster than revenue. The company also reduced share buybacks by 69.3% to $769M, providing less EPS support from share count reduction.
EA's revenue grew modestly by 0.9% YoY to $7.53B in FY2026, up from $7.46B in FY2025. This slow growth rate, combined with faster-rising costs, was the primary driver of the significant decline in operating and net income.
EA's balance sheet shows total assets of $13.13B and stockholders' equity of $6.76B, with a debt-to-equity ratio of 0.94x. However, the current ratio of just 1.05x indicates tight short-term liquidity, and declining profitability metrics warrant close monitoring.
Yes — EA's operating cash flow surged 22.8% to $2.55B in FY2026, significantly outpacing net income of $887M, which suggests strong underlying cash conversion. This divergence between cash flow and reported earnings may reflect non-cash charges or favorable working capital movements during the year.