Start here if you're new
what it is
EA makes and sells video games you play on consoles, PCs, phones, and tablets, then keeps you spending through online play.
how it gets paid
Last year Electronic Arts made $8.2B in revenue. console games was the main engine at $3.6B, or 45% of sales.
what just happened
Revenue hit $5.4B with EPS of $1.68 and gross margin of 77.5%.
At a glance
A+ balance sheet — rock-solid finances — built to survive anything
65/100 earnings predictability — reasonably predictable
52.4x trailing p/e — you're paying up for this one
0.5% dividend yield — cash in your pocket every quarter
22.5% return on capital — every dollar works hard here
xvary composite: 83/100 — above average
What they do
EA makes and sells video games you play on consoles, PCs, phones, and tablets, then keeps you spending through online play.
EA puts its games on PCs, consoles, mobile phones, and tablets, so you run into its franchises on almost every screen you own. International sales were 59% of 2024 revenue, which tells you these titles travel. Operating margin was 26.5% (how much money stays after running the business → a quarter of each sales dollar) → so what: once a hit lands, it throws off cash.
How they make money
$8.2B
annual revenue
console games
$3.6B
+10.5%
pc games
$1.6B
+10.5%
mobile games
$1.2B
+10.5%
internet gaming
$0.8B
+12.0%
tablet and other
$0.8B
+10.5%
The products that matter
annual sports franchise
EA Sports FC
part of the 33.2% full-game mix
this franchise helps fill the $2.7B full-game sales bucket, but its real value is feeding players into the bigger live-service economy behind EA's $8.2B revenue base.
flagship
first-person shooter reboot
Battlefield 6
FY26 launch
this is the swing factor. If the FY26 launch lands, it supports the $8B revenue outlook. If it misses, the premium multiple starts looking optimistic fast.
catalyst
exclusive football franchise
Madden NFL
annual release cycle
Madden matters because exclusivity helps keep players inside EA's ecosystem, and that ecosystem already produces $5.5B in live services and mobile revenue.
retention
Key numbers
52.4x
trailing p/e
P/E → price versus annual profit → so what: you are paying a luxury multiple for a company expected to earn $4.90 next year.
26.5%
operating margin
Operating margin → profit after running the business → so what: EA keeps about 27 cents from every dollar before interest and taxes.
22.5%
return on capital
Return on capital → profit earned on money invested → so what: EA still turns its capital into earnings better than many software peers.
59%
international sales
More than half of revenue came from outside the U.S. in 2024, which gives EA reach and also adds currency and macro risk.
Financial health
A+
strength
- balance sheet grade A+ — near the highest rating possible
- risk rank 2 — safer than 80% of stocks
- price stability 80 / 100
- long-term debt $1.5B (3% of capital)
- net profit margin 15.0% — keeps 15 cents of every dollar in revenue
- return on equity 34% — $0.34 profit for every $1 investors have put in
A+ with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in EA 3 years ago → it's now worth $16,990.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Revenue hit $5.4B with EPS of $1.68 and gross margin of 77.5%.
The reported quarter showed huge from a year ago jumps, with revenue up 185% and EPS up 380%. Consensus data also showed a major beat, though the EPS figures across sources do not line up cleanly.
$5.4B
revenue
$1.68
eps
77.5%
gross margin
the number that mattered
77.5% gross margin matters most because it shows EA still makes digital entertainment with software economics, not old-school retail economics.
source: company earnings report, 2026
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What could go wrong
the #1 risk is Battlefield 6 underdelivering on a stock already priced at 52.4x earnings.
med
Battlefield 6 launch misses
EA needs the FY26 launch to support the growth story. The company data already flags that a miss could reduce FY26 revenue by 5–8%, and the previous installment underperformed expectations.
Impact: this is the cleanest way the thesis breaks from here.
med
live-service engagement slips
66.8% of revenue comes from live services and mobile. That's good for stability until players spend less, churn faster, or move on. Recurring revenue is great right up until it stops recurring.
Impact: even modest engagement weakness can pressure a premium multiple because this is the segment doing most of the work.
med
valuation compression
A 52.4x trailing p/e gives you less room for ordinary disappointment. If EPS gets stuck near the $4.90 FY2026 estimate without a stronger growth narrative, the stock does not need bad news to fall.
Impact: multiple risk is real when the current price already sits near the top of the $115–$205 range.
med
regulatory scrutiny expands
40+ Democrats calling for FTC scrutiny is specific enough to monitor, but not specific enough here to model with confidence. We are not going to pretend this is a neatly quantified earnings risk when the page data does not support that.
Impact: more likely to pressure sentiment and strategy flexibility than current-year revenue.
Between a potential 5–8% FY26 revenue hit from Battlefield, dependence on the 66.8% live-service mix, and a 52.4x earnings multiple, EA does not need a disaster to disappoint you.
source: institutional data · regulatory filings · risk analysis
Pay attention to
launch calendar
Battlefield 6 timing and reception
This is the most obvious catalyst on the page. FY26 growth looks cleaner if the launch lands. A stumble would feed straight into the bear case.
metric
live services staying above the 66.8% mix
EA's quality comes from recurring player spend. If that share starts slipping, you are looking at a publisher that becomes more hit-driven again.
risk
FTC scrutiny turning into something real
The Jan 23, 2026 letter matters because it names EA directly. For now, it is a headline. If it becomes process, the story changes.
trend
whether $4.90 EPS is enough for a $204 stock
The market has already done a lot of the optimistic work. If earnings stay merely fine, multiple compression becomes the quieter risk.
Analyst rankings
earnings predictability
65 / 100
in human-speak, analysts think EA is reasonably readable, but not so steady that launches and engagement stop mattering.
risk rank
2
this scores safer than 80% of stocks. Translation: business-model risk is here, balance-sheet risk mostly is not.
price stability
80 / 100
the shares have been relatively stable for a game publisher. That helps, but it does not cancel out valuation risk.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 519 buyers vs. 448 sellers in 3q2025. total institutional holdings: 0.2B shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$116
$246
$204
current price
$181
target midpoint · 11% from current · 3-5yr high: $240 (+15% · 5% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
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