01—Abstract
Summary
Summary of the 10-K/A filed July 28, 2026. Cited figures are marked; the original filing is the authoritative source.
Electronic Arts Inc. (EA) filed its 10-K annual report on July 28, 2026, detailing its corporate governance and executive compensation for the fiscal year ending March 31, 2026.
The report highlights a stable and experienced Board of Directors with significant financial, operational, and industry expertise. Compensation structures for Named Executive Officers (NEOs) are designed to align with stockholder interests through a pay-for-performance philosophy, emphasizing competitive pay, equity ownership, and incentives tied to business results. The company also outlines robust policies for director independence, related-person transactions, and insider trading, reinforcing its commitment to strong corporate governance.
The fiscal year 2026 compensation for NEOs included base salary, annual cash bonuses tied to financial and business performance metrics, and long-term equity incentives comprising Performance-Based Restricted Stock Units (PRSUs) and Time-Based Restricted Stock Units (RSUs). The company achieved strong performance in its bonus program, with payouts reflecting both financial results and strategic objectives, including progress in generative AI strategy and building massive online communities.
The report details the compensation peer group used for benchmarking, the structure of equity awards, and benefits provided to employees and directors. Significant emphasis is placed on risk mitigation in compensation practices, with the Compensation Committee concluding that current programs do not encourage excessive risk-taking.
02—Key points
Key Highlights
- Electronic Arts Inc. (EA) filed its 10-K annual report on July 28, 2026, for the fiscal year ended March 31, 2026.
- The report emphasizes a strong corporate governance framework with an experienced Board of Directors and independent committees overseeing key areas like audit, compensation, and nominating/governance.
- Executive compensation is aligned with a pay-for-performance philosophy, featuring a mix of base salary, annual bonuses tied to financial and strategic goals, and long-term equity incentives (PRSUs and RSUs).
- Fiscal year 2026 saw strong performance in the annual bonus program, with payouts reflecting achievements in both financial targets (Non-GAAP Net Revenue and EPS) and strategic business objectives.
- The company's long-term equity incentives, including PRSUs, are designed to drive multi-year objectives, rewarding performance that creates long-term stockholder value and promoting executive retention.
- Robust policies are in place for director independence, related-person transactions, insider trading, hedging, and anti-pledging, underscoring the company's commitment to ethical business practices.
- The Audit Committee actively oversees financial reporting, the appointment of independent auditors (KPMG LLP), and risk management, including cybersecurity.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2026, Electronic Arts kept $0.12.
- Revenue$7.53B100.0%
- Cost of revenue−$1.58B21.0%
- Gross profit$5.95B79.0%
- Operating costs−$4.79B63.5%
- Operating income$1.16B15.4%
- Interest, other & tax−$275.0M3.7%
- Net income$887.0M11.8%
Where FY2026 revenue went
$7.53B- Operating costs: $4.79B, 64% of revenue
- Cost of revenue: $1.58B, 21% of revenue
- Net income: $887.0M, 12% of revenue
- Interest, other & tax: $275.0M, 3.7% of revenue
Kept 12% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-K/AFY2026filed July 28, 2026Financial Statements
FY2026 against FY2025
| Line item | FY2026FY2025 | Change |
|---|---|---|
| Revenue | $7.53B$7.46B | +0.9% |
| Cost of Revenue | $1.58B$1.54B | +2.7% |
| Gross Profit | $5.95B$5.92B | +0.5% |
| Operating Expenses | $4.79B$4.40B | +8.8% |
| Operating Income | $1.16B$1.52B | −23.6% |
| Interest Expense | $53.00M$58.00M | −8.6% |
| Net Income | $887.00M$1.12B | −20.9% |
| EPS (Basic) | $3.55$4.28 | −17.1% |
| EPS (Diluted) | $3.51$4.25 | −17.4% |
| Shares Outstanding (Basic) | 250.00M262.00M | −4.6% |
| Shares Outstanding (Diluted) | 253.00M264.00M | −4.2% |
05—Questions
Frequently Asked Questions
What are the key performance metrics used to determine executive bonuses for fiscal year 2026?
For fiscal year 2026, executive bonuses were determined by a combination of financial performance metrics, specifically Non-GAAP Net Revenue and Non-GAAP Diluted Earnings Per Share (EPS), and strategic business and operating objectives. Individual performance also played a role through an Individual Performance Modifier (IPM).
How is long-term equity compensation structured for Electronic Arts' Named Executive Officers (NEOs)?
Long-term equity compensation for NEOs consists of Performance-Based Restricted Stock Units (PRSUs) and Time-Based Restricted Stock Units (RSUs). PRSUs are designed to vest over three years based on metrics like Net Bookings, Non-GAAP Operating Income, and Total Shareholder Return (TSR). RSUs vest over a 35-month schedule to promote stock price appreciation and executive retention.
What is the company's approach to director independence?
Electronic Arts' Board of Directors has determined that all non-employee directors meet the independence requirements of the Nasdaq Stock Market Rules. The Board considers both objective tests and subjective circumstances to ensure independence, with specific independence standards applied for Audit, Compensation, and Nominating and Governance Committees to meet SEC and Nasdaq requirements.
How does EA manage compensation-related risks?
The Compensation Committee evaluates its compensation programs annually to ensure they do not encourage excessive or inappropriate risk-taking. They consider program design features such as payout caps, clawbacks, the mix of performance-based and 'at-risk' compensation, and stock ownership requirements for executives. The Committee has concluded that the current compensation policies strike an appropriate balance and do not create risks likely to have a material adverse effect on the Company.
06—Continue