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Electronic Arts
(NASDAQ:EA)
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Rating:72Outperform
Price Target:
$233.00
▲(11.45% Upside)
Action:Upgraded
Date:08/05/26
The score is primarily supported by strong underlying financial quality (high margins, robust cash generation, and low leverage) and the completed take-private transaction at $210/share. Offsetting these strengths are stretched technical conditions (overbought RSI/Stoch) and a demanding valuation profile (high P/E with a low dividend yield).
Positive Factors
High Profitability
Sustained high gross and healthy net margins indicate structural pricing power and favorable digital mix (low COGS) across EA’s portfolio. That margin profile supports reinvestment in content and technology and underpins durable operating leverage through product cycles.
Negative Factors
Uneven Revenue Growth
Revenue has shown variability across annual periods, reflecting dependency on the cadence of major releases and franchise hits. This makes top-line durability uneven, complicates long-term planning, and increases execution risk across multi-year development cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained high gross and healthy net margins indicate structural pricing power and favorable digital mix (low COGS) across EA’s portfolio. That margin profile supports reinvestment in content and technology and underpins durable operating leverage through product cycles.
Read all positive factors
Electronic Arts Key Performance Indicators (KPIs)
Any
Bookings by Segment
Shows the distribution of bookings across different business segments, highlighting which areas are driving growth and where the company is focusing its strategic efforts.
Shows the distribution of bookings across different business segments, highlighting which areas are driving growth and where the company is focusing its strategic efforts.
Data provided by:
The Fly
The FlyElectronic Arts (EA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$52.97B
Dividend Yield0.36%
Average Volume (3M)2.16M
Price to Earnings (P/E)59.1
Beta (1Y)0.26
Revenue Growth1.72%
EPS Growth-17.04%
CountryUS
Employees14,600
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)4.33
Shares Outstanding252,383,830
10 Day Avg. Volume2,469,457
30 Day Avg. Volume2,155,798
Financial Highlights & Ratios
PEG Ratio-3.37
Price to Book (P/B)7.54
Price to Sales (P/S)6.77
P/FCF Ratio21.94
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$210.00Price Target Upside0.45% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)8.69
Revenue Forecast (FY)$8.35B
Electronic Arts Business Overview & Revenue Model
Company Description
Electronic Arts Inc., established in 1982 and based in Redwood City, California, is a global leader in the creation, promotion, publication, and distribution of interactive entertainment. The company delivers a wide array of games, content, and se...
How the Company Makes Money
EA primarily makes money by selling and monetizing video games and ongoing digital services. Key revenue streams include: (1) Full game sales: Revenue from the sale of new game titles across console and PC platforms, sold both digitally (e.g., thr...
Electronic Arts Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The earnings call highlighted a strong start to the fiscal year with growth in key segments like EA SPORTS and Apex Legends. However, some challenges were noted, including a decline in live services net bookings and increased costs. The guidance for Q2 reflects some expected headwinds, but the overall outlook remains positive with a robust slate of upcoming releases.Positive Updates
Strong Start to Fiscal Year 2026
Electronic Arts delivered a strong first quarter, landing above the high end of guidance with net bookings of $1.3 billion, up 3% year-over-year.
Negative Updates
Live Services Net Bookings Decline
Live services net bookings were down 1%, with a noted impact from Apex Legends, although mitigated by other areas.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Start to Fiscal Year 2026
Electronic Arts delivered a strong first quarter, landing above the high end of guidance with net bookings of $1.3 billion, up 3% year-over-year.
Read all positive updates
Company Guidance
During the Electronic Arts First Quarter Fiscal Year 2026 Conference Call, the company reported a strong performance, exceeding the high end of their guidance, with net bookings of $1.3 billion, up 3% year-over-year. The company highlighted their EA SPORTS business as a key strength, with Global Football net bookings up mid-single digits and FC Mobile achieving over 50 million installs, underscoring significant engagement and growth. Apex Legends also performed well with sequential growth driven by strong player retention. EA's net revenue for the quarter was $1.67 billion, with a gross margin of 83.3% and operating expenses at $1.12 billion, resulting in earnings per share of $0.79. They returned $423 million to shareholders through buybacks and dividends. Looking ahead, EA has significant upcoming releases, including Battlefield 6, and expects net bookings for the second quarter to be between $1.8 billion to $1.9 billion, despite a forecasted 9-13% decline primarily due to the phasing of EA SPORTS FC deluxe edition content.Electronic Arts Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
83
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.85B | 7.53B | 7.46B | 7.56B | 7.43B | 6.99B |
| Gross Profit | 6.27B | 5.95B | 5.92B | 5.85B | 5.63B | 5.13B |
| EBITDA | 1.75B | 1.25B | 2.02B | 2.05B | 1.92B | 1.63B |
| Net Income | 1.08B | 887.00M | 1.12B | 1.27B | 802.00M | 789.00M |
Balance Sheet | ||||||
| Total Assets | 12.58B | 13.13B | 12.37B | 13.42B | 13.46B | 13.80B |
| Cash, Cash Equivalents and Short-Term Investments | 2.40B | 2.98B | 2.25B | 3.26B | 2.77B | 3.06B |
| Total Debt | 1.49B | 1.85B | 2.22B | 1.95B | 1.95B | 1.96B |
| Total Liabilities | 5.50B | 6.37B | 5.98B | 5.91B | 6.17B | 6.17B |
| Stockholders Equity | 7.08B | 6.76B | 6.39B | 7.51B | 7.29B | 7.63B |
Cash Flow | ||||||
| Free Cash Flow | 2.06B | 2.32B | 1.86B | 2.12B | 1.34B | 1.71B |
| Operating Cash Flow | 2.29B | 2.55B | 2.08B | 2.31B | 1.55B | 1.90B |
| Investing Cash Flow | -264.00M | -276.00M | 37.00M | -207.00M | -217.00M | -2.80B |
| Financing Cash Flow | -1.25B | -1.57B | -2.86B | -1.62B | -1.60B | -1.62B |
Electronic Arts Technical Analysis
Positive
209.06
Price Trends
205.27
Positive
203.50
Positive
202.59
Positive
Market Momentum
1.31
Positive
75.58
Negative
87.28
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EA, the sentiment is Positive. The current price of 209.06 is above the 20-day moving average (MA) of 208.31, above the 50-day MA of 205.27, and above the 200-day MA of 202.59, indicating a bullish trend. The MACD of 1.31 indicates Positive momentum. The RSI at 75.58 is Negative, neither overbought nor oversold. The STOCH value of 87.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EA.
Electronic Arts Risk Analysis
Electronic Arts disclosed 27 risk factors in its most recent earnings report. Electronic Arts reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Electronic Arts Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $78.12B | 15.45 | 21.64% | 2.53% | 8.50% | 7.29% | |
72 Outperform | $52.97B | 59.12 | 16.66% | 0.36% | 1.72% | -17.04% | |
65 Neutral | $7.40B | 34.62 | 8.04% | ― | 11.20% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $45.44B | -139.83 | -9.12% | ― | 15.30% | 92.77% | |
54 Neutral | $25.39B | -24.85 | -288.77% | ― | 41.33% | 0.75% | |
50 Neutral | $902.05M | -3.45 | 82.92% | 10.87% | 5.84% | -421.33% |
* Communication Services Sector Average
EA
Electronic Arts
209.70
31.39
17.61%
NTES
NetEase
122.65
-3.94
-3.11%
TTWO
Take-Two
241.91
8.75
3.75%
BILI
Bilibili
17.07
-6.75
-28.34%
PLTK
Playtika Holding
2.52
-0.88
-25.90%
RBLX
Roblox
37.95
-87.33
-69.71%
Electronic Arts Corporate Events
Business Operations and StrategyExecutive/Board ChangesDelistings and Listing ChangesM&A TransactionsPrivate Placements and FinancingRegulatory Filings and ComplianceShareholder Meetings
Electronic Arts Taken Private in Saudi-Led Buyout
Positive
Aug 4, 2026
On August 4, 2026, Electronic Arts completed its acquisition by a consortium comprising Saudi Arabia’s Public Investment Fund, Silver Lake and Affinity Partners, following stockholder approval in December 2025. EA shareholders received $210 ...
Business Operations and StrategyDelistings and Listing ChangesM&A Transactions
Electronic Arts nears merger closing, going private
Neutral
Jul 30, 2026
Electronic Arts Inc. disclosed that on September 28, 2025, it entered into a merger agreement under which Oak-Eagle MergerCo, Inc. will merge into Electronic Arts, leaving the company as a wholly owned subsidiary of Oak-Eagle AcquireCo, Inc., an e...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Electronic Arts Reports Record Bookings and Cash Flow
Positive
May 5, 2026
Electronic Arts reported record net bookings of $8.03 billion and operating cash flow of $2.55 billion for the fiscal year ended March 31, 2026, supported by the successful launch of Battlefield 6 and continued growth in its live services portfoli...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.