10-K/APeriod: FY2026

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

Filed July 28, 2026For Securities:EA

Summary

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.

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

  • 1Electronic Arts Inc. (EA) filed its 10-K annual report on July 28, 2026, for the fiscal year ended March 31, 2026.
  • 2The 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.
  • 3Executive 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).
  • 4Fiscal 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.
  • 5The 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.
  • 6Robust 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.
  • 7The Audit Committee actively oversees financial reporting, the appointment of independent auditors (KPMG LLP), and risk management, including cybersecurity.

Frequently Asked Questions

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).

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.

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.

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.