10-K · July 28, 2026
This 10-K/A principally adds Part III governance and compensation disclosures rather than updating operating results or risk factors from the original FY2026 10-K. EA delivered $7.531 billion of GAAP revenue, $887…
Earnings analysis · 10-Q
EA earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
EA reported a strong year-over-year quarter: revenue increased 19% to $1.986 billion, gross margin improved to 86.2%, operating income rose 89% to $513 million, and diluted EPS was $1.56. The main offset is cash…
Read full summary
EA reported a strong year-over-year quarter: revenue increased 19% to $1.986 billion, gross margin improved to 86.2%, operating income rose 89% to $513 million, and diluted EPS was $1.56. The main offset is cash conversion, with operating cash flow deteriorating to negative $242 million and cash declining $576 million sequentially, although total cash and short-term investments remained $2.404 billion. Management provided no numeric guidance, while pointing to continued digital mix expansion and the ongoing materiality—but potential nonlinearity—of live-services revenue.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.56
What stood out
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Revenue grew 19% to $1.986B
Revenue rose $315 million, or 19%, year over year to $1.986 billion, driven by Battlefield 6, EA SPORTS FC and higher Apex Legends extra-content sales. The reported period included 14 weeks versus 13 weeks in the prior-year quarter.
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Gross margin expanded to 86.2%
Gross margin expanded 3 percentage points year over year to 86.2% as cost of revenue fell $5 million to $274 million despite the $315 million increase in revenue.
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Operating income nearly doubled
Operating income increased 89% year over year to $513 million. This equates to a 25.8% operating margin, while operating expenses rose 7% to $1.199 billion, materially below revenue growth.
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EPS reached $1.56 on full-game strength
Diluted EPS was $1.56 on net income of $397 million. Full-game revenue increased 78% to $514 million, led by Battlefield 6 and EA SPORTS FC 26.
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Bookings growth remained positive
Net bookings increased $51 million, or 4%, to $1.349 billion; live-services bookings rose $32 million, or 3%, to $1.116 billion. Apex Legends extra content was a key contributor, partly offset by lower EA SPORTS FC Ultimate Team extra-content sales.
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Cash resources and revolver support liquidity
Liquidity remained substantial at $2.404 billion of cash, cash equivalents and short-term investments as of June 30, 2026. The $500 million revolving credit facility was undrawn.
What to watch
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Operating cash flow turned sharply negative
Operating cash flow swung to an outflow of $242 million from a $17 million inflow in the prior-year quarter, driven primarily by higher cash income-tax, variable-compensation and personnel payments. Cash and equivalents declined $576 million from $2.864 billion at March 31, 2026 to $2.288 billion.
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Merger completion and litigation risk
The proposed merger remains subject to conditions outside EA's full control and may be delayed or fail to close. EA entered the merger agreement on September 28, 2025, and says related litigation could delay or prevent completion.
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Material foreign-exchange sensitivity
Foreign-exchange exposure remains meaningful: a hypothetical adverse 10% currency movement would reduce the fair value of cash-flow hedge contracts by $204 million and create an $88 million potential income-statement loss on balance-sheet hedges.
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Franchise and live-services concentration
Management identified no clearly labeled new or amended risk factor relative to the prior filing in the supplied text. Existing competitive risk remains material because $1.472 billion, or roughly three-quarters of quarterly revenue, came from live services and other revenue tied heavily to major franchises.
Management's outlook
The 10-Q provides no quantitative revenue or EPS outlook. Management expects live-services revenue to remain material, expects digital full-game downloads to increase over time and packaged-goods revenue to decrease, and states liquidity should be sufficient for the next 12 months and beyond; formal outlook is deferred to earnings materials/call.
Earlier filings 4
10-K · May 11, 2026
Electronic Arts (EA) reported a net revenue increase of 1% year-over-year to $7.531 billion for FY2026, with net income of $887 million and diluted EPS of $3.51, a marked decrease from previous year levels. The company…
10-Q · November 1, 2024
EA reported Q2 net revenue of $2,025 million, up $111 million (+5.8%) versus prior-year quarter, with gross profit rising to $1,569 million (gross margin ~77.4%). Operating income was $384 million (operating margin…
10-K · May 24, 2023
EA reported fiscal 2023 net revenue of $7,426 million (up $435 million, or 6% vs FY2022) driven by live services and extra content, producing operating income of $1,332 million and net income of $802 million (diluted…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.