Electronic Arts Inc.
- Open
- 209.70
- Day high
- 209.70
- Day low
- 209.70
- Prev close
- 209.70
- Volume
- 0
- Mkt cap
- $52.9B
- P/E (TTM)
- 48.4
- EPS (TTM)
- $4.33
- P/B
- 7.5
- P/S
- 6.7
- Yield
- 0.27%
- Per share
- $0.57
- ▼Insiders net selling -$3.4M over the last 3 months (0 open-market buys, 8 sales)
- 🏛Institutions mixed (13F)
Electronic Arts Inc. (EA) is a Technology company listed on NASDAQ. The stock is up 19% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 8 sales (SEC Form 4).
Electronic Arts Inc. (EA) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
EA earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 3, 2026 | $0.78 | $0.20 | -74.2% | $2.0B | +36.4% |
| May 5, 2026 | $2.39 | $1.50 | -37.2% | $1.9B | -5.7% |
| Feb 3, 2026 | $4.72 | $4.82 | +2.1% | $1.9B | -34.4% |
| Jul 29, 2025 | $0.11 | $0.25 | +125.8% | $1.7B | +34.2% |
| Feb 4, 2025 | $3.41 | $2.83 | -17.0% | $1.9B | -18.8% |
| Jan 30, 2024 | $2.93 | $2.96 | +1.0% | $1.9B | -18.9% |
| Nov 1, 2023 | $1.25 | $1.46 | +16.8% | $1.9B | +8.0% |
| Aug 1, 2023 | $1.02 | $1.14 | +11.8% | $1.9B | +21.1% |
| Jan 31, 2023 | $3.05 | $2.71 | -11.1% | $1.9B | -24.1% |
| Nov 1, 2022 | $1.35 | $1.28 | -5.2% | $1.9B | +5.3% |
| Aug 2, 2022 | $0.29 | $0.32 | +10.3% | $1.8B | +40.3% |
| Feb 1, 2022 | $3.22 | $3.17 | -1.6% | $1.8B | -32.7% |
EA insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 29, 2026 | Simonson Richard Adirector | Option | 3,570 | — |
| Jul 16, 2026 | Miele Lauraofficer: President, Enterprise Dev. | Sell | 1,400 | $206.78 |
| Jul 16, 2026 | Wilson Andrewdirector, officer: Chairman & CEO | Sell | 3,200 | $207.26 |
| Jul 16, 2026 | Wilson Andrewdirector, officer: Chairman & CEO | Sell | 1,800 | $206.55 |
| Jul 16, 2026 | Miele Lauraofficer: President, Enterprise Dev. | Sell | 1,100 | $207.30 |
| Jul 16, 2026 | Singh Vijayanthimalaofficer: Chief People Officer | Sell | 600 | $206.68 |
| Jun 23, 2026 | Canfield Stuartofficer: EVP & Chief Financial Officer | Option | 3,188 | — |
| Jun 23, 2026 | Canfield Stuartofficer: EVP & Chief Financial Officer | Tax | 1,581 | $202.15 |
| Jun 16, 2026 | Kelly Eric Charlesofficer: Chief Accounting Officer | Grant | 5,415 | — |
| Jun 16, 2026 | Singh Vijayanthimalaofficer: Chief People Officer | Sell | 1,200 | $203.00 |
| Jun 16, 2026 | Schatz Jacob J.officer: EVP, Global Affairs and CLO | Grant | 40,924 | — |
| Jun 16, 2026 | Miele Lauraofficer: President, Enterprise Dev. | Grant | 60,309 | — |
| Jun 16, 2026 | Miele Lauraofficer: President, Enterprise Dev. | Sell | 2,500 | $203.10 |
| Jun 16, 2026 | Wilson Andrewdirector, officer: Chairman & CEO | Grant | 150,772 | — |
| Jun 16, 2026 | Wilson Andrewdirector, officer: Chairman & CEO | Sell | 5,000 | $203.12 |
Source: EA SEC Form 4 filings, latest Jul 29, 2026. For informational purposes only — not investment advice.
See the full EA insider & 13F page →Electronic Arts Inc. company profile
Overview
Electronic Arts Inc. (NASDAQ:EA) is one of the world's largest video game publishers, founded in 1982 and incorporated in California. The company went public in 1989 and is headquartered in Redwood City, California. EA develops, markets, publishes, and distributes interactive entertainment software for game consoles, personal computers, mobile phones, and tablets worldwide. The company has evolved from a traditional packaged goods video game publisher into a digital entertainment platform focused on live services and online communities, with operations spanning globally across major gaming markets.
Business
Electronic Arts operates in the interactive entertainment industry, specifically focusing on video game development and publishing. The company creates and distributes games across multiple genres including sports simulation, first-person shooters, role-playing games, life simulation, and action-adventure titles. EA's business is structured around several major franchises and operates through both traditional full game sales and live services models. The company's portfolio includes several globally recognized franchises. EA SPORTS represents the largest segment, featuring sports simulation games such as EA SPORTS FC (formerly FIFA, the world's most popular soccer/football game), Madden NFL (American football), and EA SPORTS College Football. These games simulate real-world sports with licensed teams, players, and leagues, allowing players to control and manage their favorite teams and athletes. Apex Legends is EA's flagship battle royale game, a free-to-play multiplayer shooter where teams of players compete to be the last squad standing on an ever-shrinking map. The Sims franchise offers life simulation gameplay where players create and control virtual people and their environments. Battlefield is a military-themed first-person shooter series focused on large-scale multiplayer combat. EA's revenue model has shifted dramatically toward live services, which now comprise approximately 74% of total net bookings. Live services include in-game purchases, downloadable content, subscription services, and ongoing content updates that extend the life and monetization of base games. The remaining revenue comes from full game sales, which are traditional one-time purchases of complete game titles. Based on recent financial data, EA SPORTS franchises generate the majority of revenue, with American football (Madden/College Football) contributing over $1 billion annually, while global football (EA SPORTS FC) represents the largest single franchise despite recent challenges.
Revenue model
Electronic Arts generates revenue through multiple complementary business models. The primary revenue stream comes from live services, accounting for approximately 74% of total net bookings, which includes in-game purchases, Ultimate Team card packs, battle passes, cosmetic items, and downloadable content expansions. Players spend money continuously over time to enhance their gaming experience, acquire new content, or gain competitive advantages. The secondary revenue stream is full game sales, representing traditional one-time purchases of complete game titles at launch, typically priced between $60-$70 for premium titles. EA's paying customers span multiple demographics and platforms. Core customers include dedicated gamers who purchase full games and engage heavily with live services, casual mobile players who make smaller but frequent in-game purchases, and sports fans who buy annual franchise updates. The company monetizes across console platforms (PlayStation, Xbox, Nintendo Switch), PC platforms (Steam, EA's own Origin/EA App), and mobile devices (iOS and Android). Several factors influence EA's profit margins positively and negatively. Positive margin drivers include the shift toward higher-margin live services revenue, which has lower distribution costs than physical games, the network effects of large online communities that drive engagement and spending, successful franchise launches that can sustain years of live service monetization, and the use of artificial intelligence to reduce development costs and timelines. Negative margin pressures include intense competition in the gaming industry leading to higher marketing and development costs, platform fees charged by console manufacturers and digital storefronts (typically 30%), rising development costs for AAA games requiring larger teams and longer development cycles, licensing fees for sports leagues and entertainment properties, and the need for continuous content creation to maintain live service engagement.
Competitive moat
Electronic Arts possesses a moderate competitive moat built primarily around exclusive licensing agreements and established franchises, though this moat faces increasing challenges. The company's strongest defensive position comes from exclusive sports licensing deals, particularly with major American sports leagues (NFL, NCAA) that provide multi-year exclusive rights to create officially licensed games. These agreements create significant barriers for competitors, as seen with EA's monopoly on NFL simulation games through Madden NFL. However, EA's moat has notable vulnerabilities. The company lost its exclusive FIFA licensing agreement, forcing a transition to EA SPORTS FC, which demonstrates how licensing dependencies can become liabilities. The gaming industry's shift toward free-to-play models and live services has lowered barriers to entry, allowing smaller developers to compete effectively without massive upfront investments. Network effects provide some protection, as large player communities in games like Apex Legends and Ultimate Team modes create switching costs, but these effects can erode quickly if engagement declines. Competition comes from multiple directions. Traditional gaming companies like Activision Blizzard (now owned by Microsoft), Take-Two Interactive, and Ubisoft compete directly in similar genres. Free-to-play specialists like Epic Games (Fortnite) and Riot Games (League of Legends) have captured significant market share with different business models. Mobile gaming companies, particularly from Asia, threaten EA's expansion into mobile markets. Additionally, platform holders like Sony, Microsoft, and Apple are increasingly developing first-party content, potentially reducing their reliance on third-party publishers like EA. The company's moat strength varies by franchise, with sports games benefiting from licensing exclusivity and annual purchase cycles, while other franchises like Battlefield face intense competition in crowded markets. Overall, EA maintains a defendable but not impregnable competitive position that requires continuous innovation and strategic licensing management.
Risks & safety
Electronic Arts demonstrates a moderate margin of safety with mixed financial health indicators. • Liquidity and Solvency: Strong cash position with $2.1 billion in cash and short-term investments, though current ratio of 0.95 indicates potential short-term liquidity concerns. Debt-to-equity ratio of 0.31 represents manageable leverage levels. • Cash Generation: Robust free cash flow of $1.9 billion annually demonstrates strong cash generation capabilities, with operating cash flow of $2.1 billion indicating healthy underlying business operations. • Valuation Metrics: Trading at elevated multiples with P/E ratio of 34x and EV/EBITDA of 25x, suggesting limited valuation-based margin of safety. Price-to-book ratio of 5.9x indicates significant premium to book value. • Profitability: Return on equity of 18% demonstrates efficient capital utilization, while EBITDA margins around 20% indicate reasonable operational efficiency. • Other Considerations: Revenue concentration in live services creates both stability through recurring revenue and risk through dependence on player engagement. Seasonal revenue patterns with Q3/Q4 strength provide predictable cash flow timing but create working capital management challenges.
Recent development
Over the past few years, Electronic Arts has undergone significant strategic transformation focused on three key areas. The company has pivoted heavily toward live services and community engagement, with live services now representing 74% of total revenue compared to traditional one-time game sales. This shift reflects EA's recognition that ongoing player engagement and monetization provide more sustainable and profitable revenue streams than periodic game launches. Franchise portfolio evolution represents another major development. EA successfully launched EA SPORTS College Football 25 after an 11-year hiatus, generating over $1 billion in net bookings for the American football ecosystem. However, the company faced challenges with the FIFA licensing transition, rebranding to EA SPORTS FC, which experienced temporary player acquisition and engagement issues before recovering through gameplay updates. The Battlefield franchise is being repositioned with community-driven development through Battlefield Labs, while Dragon Age: The Veilguard underperformed market expectations. Technology and platform expansion has become increasingly central to EA's strategy. The company is heavily investing in artificial intelligence to accelerate game development, using AI to create thousands of player likenesses efficiently and reduce development timelines. EA is also developing the EA SPORTS app as an interactive sports platform beyond traditional gaming, expanding mobile versions of core franchises, and preparing for emerging platforms. The acquisition of TRACAB technologies demonstrates EA's commitment to enhancing sports simulation authenticity through advanced tracking capabilities. These strategic moves reflect EA's broader transformation from a traditional game publisher to a digital entertainment platform focused on building and monetizing massive online communities across multiple touchpoints and platforms.
EA company profile · for informational purposes only — not investment advice.
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