10-KPeriod: FY2026

ELECTRONIC ARTS INC. Annual Report, Year Ended Mar 31, 2026

Filed May 11, 2026For Securities:EA

Summary

Electronic Arts Inc. (EA) reported total net revenue of $7.531 billion for the fiscal year ended March 31, 2026, a slight increase of 1% year-over-year. While live services revenue experienced a modest 1% decline, it still represented a significant 71% of total net revenue, highlighting its crucial role in EA's business model. Full game download revenue saw a healthy 16% increase, indicating a continued shift towards digital purchases. The company is in the process of being acquired by an investor consortium for $210 per share in cash, a transaction expected to close subject to regulatory approvals. The ongoing merger adds a layer of uncertainty, impacting operational flexibility and incurring significant transaction costs, though the acquisition itself is not contingent on financing. Financially, EA reported operating income of $1.162 billion, down 24% year-over-year, largely due to a 9% increase in operating expenses, primarily driven by higher research and development and marketing costs associated with new game releases. Net income was $887 million. The company maintained a strong liquidity position with $2.98 billion in cash, cash equivalents, and short-term investments, and generated robust net cash from operating activities. Despite a challenging competitive landscape and potential risks associated with the merger, EA's focus on its core live services and digital distribution continues to be a strategic imperative.

Financial Highlights

50 data points
Beta

Revenue

$7.53B

79.0% Gross Margin

Net Income

$887.00M

11.8% Net Margin

EPS (Diluted)

$3.51

Total Assets

$13.13B

Cash & Equivalents

$2.86B

Free Cash Flow

$2.55B

Financial Statements
Beta
Revenue$7.53B
Cost of Revenue$1.58B
Gross Profit$5.95B
Operating Expenses$4.79B
Operating Income$1.16B
Interest Expense$53.00M
Net Income$887.00M
EPS (Basic)$3.55
EPS (Diluted)$3.51
Shares Outstanding (Basic)250.00M
Shares Outstanding (Diluted)253.00M

Key Highlights

  • 1Total net revenue for FY2026 reached $7.531 billion, a 1% increase year-over-year, demonstrating resilience in a competitive market.
  • 2Live services and other net revenue accounted for 71% of total net revenue ($5.383 billion), though it saw a 1% decrease year-over-year, emphasizing its continued importance to the business model.
  • 3Full game download revenue increased by 16% to $1.708 billion, reflecting a strong consumer shift towards digital game purchases.
  • 4The company is subject to a proposed acquisition by an investor consortium for $210 per share, with closing dependent on regulatory approvals.
  • 5Operating income decreased by 24% to $1.162 billion, primarily due to a 9% increase in operating expenses, including significant investments in R&D and marketing.
  • 6EA maintained a healthy financial position with $2.980 billion in cash, cash equivalents, and short-term investments.
  • 7Net cash provided by operating activities increased by 23% to $2.553 billion, indicating strong operational cash generation.

Frequently Asked Questions

Electronic Arts has entered into a definitive agreement to be acquired by an investor consortium for $210 per share in cash. The transaction has received stockholder approval, but it is still subject to certain regulatory approvals and other closing conditions. Parties are working diligently to complete these remaining reviews.

For the fiscal year ended March 31, 2026, Electronic Arts reported total net revenue of $7.531 billion, a 1% increase year-over-year. Operating income decreased by 24% to $1.162 billion, impacted by a 9% rise in operating expenses, which included increased investments in research and development and marketing. Net income was $887 million.

Live services and other net revenue represented a substantial 71% of EA's total net revenue in fiscal year 2026, amounting to $5.383 billion. While this segment experienced a slight 1% decrease year-over-year, it remains the primary driver of EA's revenue, underscoring the company's strategy of ongoing player engagement through extra content and subscriptions.

Key risks include the potential disruptions if the proposed merger does not close, intense competition within the interactive entertainment market, the risk of not meeting product development schedules, rapid technological changes and the need to adapt, potential reputational damage from product quality issues or player feedback, cybersecurity threats, and the dependence on third-party console manufacturers and platforms. The merger itself also introduces risks such as impairing employee retention and restricting business opportunities during the pendency of the transaction.