Revenue Growth Remains Modest
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: 10-K Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
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 (Diluted)
$3.51
-17.41% YoY
Gross Margin
79.0%
-0.4 pts YoY
Operating Income
$1.16B
-23.55% YoY
Filed · Analysis updated
Next EA earnings expected
Source: SEC XBRL
EA reported FY2026 revenue of $7.53B, up 0.9% year over year. Operating margin was 15.4%, down 5.0 points from 20.4% a year earlier. Operating cash flow was $2.55B, up 22.8% year over year.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026This filing | 1.59 | 2.49 | Miss -36.0% |
| Dec 2025 | 4.82 | 4.86 | Miss -0.9% |
| Sep 2025 | 1.21 | 1.34 | Miss -9.8% |
| Jun 2025 | 0.25 | 0.11 | Beat +122.4% |
Reported EPS of $1.59 versus the $2.49 analyst consensus — a -36.0% miss for Mar 2026.
Compiled by AI from this SEC 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: 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: 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: 10-K Income Statement
Despite weaker reported earnings, operating cash flow surged 22.8% YoY to $2.55B, significantly outpacing net income of $887M, suggesting strong underlying cash conversion and working capital management.
Source: 10-K Cash Flow Statement
Share buybacks declined sharply by 69.3% YoY to $769M (from $2.51B), while dividends paid were $191M, indicating a more conservative capital return posture in FY2026.
Source: 10-K Cash Flow Statement
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
EA'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: 10-K Income Statement
Revenue grew only 0.9% YoY to $7.53B, a pace that may be insufficient to offset rising operating expenses. Sustained low growth could signal market share challenges or weakening demand for EA's game titles.
Source: 10-K Income Statement
Net income fell 20.9% YoY to $887M, and diluted EPS dropped 17.4% to $3.51. This significant earnings decline may disappoint investors and could reflect structural cost issues beyond one-time items.
Source: 10-K Income Statement
The current ratio stands at just 1.05x, with current assets of $3.97B barely covering current liabilities of $3.80B. This leaves limited buffer for unexpected short-term obligations or market disruptions.
Source: 10-K Balance Sheet
EA's debt-to-equity ratio is 0.94x, and total liabilities grew 6.4% YoY to $6.37B. While manageable, rising liabilities alongside declining profitability could increase financial risk if earnings continue to weaken.
Source: 10-K Balance Sheet
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 7.53 $B | 7.46 $B | +0.91% |
Cost of Revenue $B | 1.58 $B | 1.54 $B | +2.66% |
Gross Profit $B | 5.95 $B | 5.92 $B | +0.46% |
Operating Income $B | 1.16 $B | 1.52 $B | -23.55% |
Net Income $B | 0.89 $B | 1.12 $B | -20.87% |
EPS (Basic) $ | 3.55 $ | 4.28 $ | -17.06% |
EPS (Diluted) $ | 3.51 $ | 4.25 $ | -17.41% |
Answers draw on this SEC filing and the data on this page
EA's Q1 FY2027 net revenue grew 19% to $1,986 million, powered by the Battlefield 6 launch and live services, with operating income surging 89%, though operating cash flow turned negative.
EA's Q3 FY2026 results showed nearly flat revenue growth of +1.0% to $1.90B, but operating income collapsed 66.3% to $127M and net income fell 70.0% to $88M, driven by sharply higher costs and expenses, while year-to-date operating cash flow surged 29.0% to $1.97B.
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