Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Electronic Arts Inc.

EA · Nasdaq · Technology

Fundamental quality

ATTRACTIVE

76

out of 100

Electronic Arts Inc. runs like a cash machine: it converts about 26.3% of revenue into free cash flow and holds a 13.8% net margin, though it grows at a measured pace. On fundamental quality it scores 76 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +6.5%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Electronic Arts is one of gaming's big publishers: EA Sports FC (the old FIFA), Madden, The Sims, Battlefield. Its strength is annual sports franchises with recurring in-game revenue (Ultimate Team).

What will shape its future

  • The health of EA Sports FC and Ultimate Team, the group's monetization machine.
  • Player spending on live services versus traditional game purchases.
  • Loot-box/microtransaction regulation, the sword over its model.

Breakdown by area

I.Growth
52

EPS growth: 7.9% · Revenue growth: 6.5%

II.Profitability
80

Net margin: 13.8% · ROE: 15.3% · ROIC: 16.9%

III.Financial health
95

Net debt/EBITDA: -0.46x · FCF: 26.3%

Source: SEC EDGAR · TTM through 30/06/2026

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 50%
ROEbeats 45%
Growthbeats 25%
Cash generationbeats 63%
Less debtbeats 82%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Electronic Arts Inc. strengths

  • High gross margin (79.9%), pointing to pricing power.
  • Excellent free-cash-flow generation (FCF margin of 26.3%): profit turns into real cash.
  • Net cash position: more cash than debt.
  • Solid net margin (13.8%): the business is clearly profitable.

Electronic Arts Inc. risks and weaknesses

  • Shrinking margins: net margin has fallen from 15% to 12% in recent years.

Electronic Arts Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
20215,6298371,810-3,384
20226,9917891,711-854
20237,4268021,343-544
20247,5621,2732,116-1,018
20257,4631,1211,858-252
20267,5318872,323-1,379

Between 2021 and 2026, revenue went from $5,629M to $7,531M (+34%) and net income went from $837M to $887M (+6%). Meanwhile, its margins have narrowed (from 15% to 12%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended June 30, 2026, versus the quarter ended June 30, 2025 (SEC filings):

  • Revenue+18.9%
  • Net income+97.5%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Quality score7276
  • Net margin11.8%13.8%
  • ROE13.1%15.3%
  • FCF margin30.8%26.3%
  • Net debt/EBITDA-0.93×-0.46×

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$0.76

per share, yearly

21.5% of earnings

Payout

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Electronic Arts Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Electronic Arts Inc. a good company to invest in?

In terms of business quality, Electronic Arts Inc. scores 76 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Electronic Arts Inc. a profitable company?

Yes. Electronic Arts Inc. shows a net margin of 13.8% and an ROE of 15.3%, a sign of a profitable business.

Does Electronic Arts Inc. have a lot of debt?

No. Electronic Arts Inc. has a net cash position: more cash than debt.

Is Electronic Arts Inc. growing?

Its revenue has grown 6.5% annualized in recent years and its earnings per share 7.9%.

Does Electronic Arts Inc. generate cash?

Yes. It converts about 26.3% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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