# ELECTRONIC ARTS INC. (EA)

Informational only - not investment advice.

CIK: 0000712515
SIC: 7372 Services-Prepackaged Software
SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7372 Services-Prepackaged Software](/industry/7372/)
Latest 10-K filed: 2026-05-11
SEC page: https://www.sec.gov/edgar/browse/?CIK=712515
Filing source: https://www.sec.gov/Archives/edgar/data/712515/000162828026033617/ea-20260331.htm

## At a glance

FY2026 · period end 2026-03-31 · filed 2026-05-11 · accession 0001628280-26-033617 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000712515.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 7,531,000,000 USD | 2026 | verified |
| Net income | 887,000,000 USD | 2026 | verified |
| Assets | 13,131,000,000 USD | 2026 | verified |
| Net margin | 11.78% | 2026 | computed |
| Operating margin | 15.43% | 2026 | computed |
| Revenue YoY | +0.91% | 2026 | computed |
| ROE | 13.11% | 2026 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2026 revenue ÷ FY2025 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | EA | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 11.8% | 1.5% | 70 | 122 |
| Operating margin | 15.4% | 1.3% | 77 | 121 |
| Revenue growth | 0.9% | 13.5% | 15 | 124 |
| ROE | 13.1% | 2.0% | 70 | 112 |
| ROA | 6.8% | 0.9% | 76 | 124 |
| Liabilities / equity | 0.94 | 0.91 | 53 | 113 |
| Current ratio | 1.05 | 1.57 | 23 | 124 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7372 Services-Prepackaged Software, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 7531000000 | USD | 2026 | 2026-05-11 |
| Net income | 887000000 | USD | 2026 | 2026-07-28 |
| Assets | 13131000000 | USD | 2026 | 2026-05-11 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-28. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000712515.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 4,845,000,000 | 5,150,000,000 | 4,950,000,000 | 5,537,000,000 | 5,629,000,000 | 6,991,000,000 | 7,426,000,000 | 7,562,000,000 | 7,463,000,000 | 7,531,000,000 |
| Net income | 967,000,000 | 1,043,000,000 | 1,019,000,000 | 3,039,000,000 | 837,000,000 | 789,000,000 | 802,000,000 | 1,273,000,000 | 1,121,000,000 | 887,000,000 |
| Operating income | 1,224,000,000 | 1,434,000,000 | 996,000,000 | 1,445,000,000 | 1,046,000,000 | 1,129,000,000 | 1,332,000,000 | 1,518,000,000 | 1,520,000,000 | 1,162,000,000 |
| Gross profit | 3,547,000,000 | 3,873,000,000 | 3,628,000,000 | 4,168,000,000 | 4,135,000,000 | 5,132,000,000 | 5,634,000,000 | 5,852,000,000 | 5,920,000,000 | 5,947,000,000 |
| Diluted EPS | 3.08 | 3.34 | 3.33 | 10.30 | 2.87 | 2.76 | 2.88 | 4.68 | 4.25 | 3.51 |
| Operating cash flow |  |  | 1,547,000,000 | 1,797,000,000 | 1,934,000,000 | 1,899,000,000 | 1,550,000,000 | 2,315,000,000 | 2,079,000,000 | 2,553,000,000 |
| Dividends paid |  |  |  | 0.00 | 98,000,000 | 193,000,000 | 210,000,000 | 205,000,000 | 199,000,000 | 191,000,000 |
| Share buybacks | 508,000,000 | 601,000,000 | 1,192,000,000 | 1,207,000,000 | 729,000,000 | 1,300,000,000 | 1,295,000,000 | 1,300,000,000 | 2,508,000,000 | 769,000,000 |
| Assets | 7,718,000,000 | 8,584,000,000 | 8,957,000,000 | 11,112,000,000 | 13,288,000,000 | 13,800,000,000 | 13,459,000,000 | 13,420,000,000 | 12,368,000,000 | 13,131,000,000 |
| Liabilities | 3,658,000,000 | 3,989,000,000 | 3,626,000,000 | 3,651,000,000 | 5,448,000,000 | 6,175,000,000 | 6,166,000,000 | 5,907,000,000 | 5,982,000,000 | 6,367,000,000 |
| Stockholders' equity | 4,060,000,000 | 4,595,000,000 | 5,331,000,000 | 7,461,000,000 | 7,840,000,000 | 7,625,000,000 | 7,293,000,000 | 7,513,000,000 | 6,386,000,000 | 6,764,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 19.96% | 20.25% | 20.59% | 54.89% | 14.87% | 11.29% | 10.80% | 16.83% | 15.02% | 11.78% |
| Operating margin | 25.26% | 27.84% | 20.12% | 26.10% | 18.58% | 16.15% | 17.94% | 20.07% | 20.37% | 15.43% |
| Return on equity | 23.82% | 22.70% | 19.11% | 40.73% | 10.68% | 10.35% | 11.00% | 16.94% | 17.55% | 13.11% |
| Return on assets | 12.53% | 12.15% | 11.38% | 27.35% | 6.30% | 5.72% | 5.96% | 9.49% | 9.06% | 6.76% |
| Liabilities / equity | 0.90 | 0.87 | 0.68 | 0.49 | 0.69 | 0.81 | 0.85 | 0.79 | 0.94 | 0.94 |
| Current ratio | 2.15 | 2.41 | 2.82 | 2.45 | 2.43 | 1.18 | 1.21 | 1.37 | 0.95 | 1.05 |

## As-reported value updates

1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/EA/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-03. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000712515.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2023-Q2 | 2022-09-30 |  |  | 1.07 | reported discrete quarter |
| 2023-Q3 | 2022-12-31 |  |  | 0.73 | reported discrete quarter |
| 2023-Q1 | 2023-06-30 |  |  | 1.47 | reported discrete quarter |
| 2024-Q2 | 2023-09-30 |  | 399,000,000 | 1.47 | reported discrete quarter |
| 2024-Q3 | 2023-12-31 |  | 290,000,000 | 1.07 | reported discrete quarter |
| 2024-Q4 | 2024-03-31 |  | 182,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-06-30 |  | 280,000,000 | 1.04 | reported discrete quarter |
| 2025-Q2 | 2024-09-30 |  | 294,000,000 | 1.11 | reported discrete quarter |
| 2025-Q3 | 2024-12-31 |  | 293,000,000 | 1.11 | reported discrete quarter |
| 2025-Q4 | 2025-03-31 |  | 254,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2025-06-30 |  | 201,000,000 | 0.79 | reported discrete quarter |
| 2026-Q2 | 2025-09-30 | 1,839,000,000 | 137,000,000 | 0.54 | reported discrete quarter |
| 2026-Q3 | 2025-12-31 | 1,901,000,000 | 88,000,000 | 0.35 | reported discrete quarter |
| 2026-Q4 | 2026-03-31 |  | 461,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2027-Q1 | 2026-06-30 | 1,986,000,000 | 397,000,000 | 1.56 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from EA's latest 10-K: [/company/EA/business/](/company/EA/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from EA's latest 10-K: [/company/EA/risk-factors/](/company/EA/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/712515/000162828026051829/ea-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-03
Report date: 2026-06-30

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements. We use words such as “anticipate”, “believe”, “expect”, “intend”, “estimate”, “plan”, “predict”, “seek”, “goal”, “will”, “may”, “likely”, “should”, “could”, “continue”, “potential” (and the negative of any of these terms), “future” and similar expressions to identify forward-looking statements. In addition, any statements that refer to projections of our future financial performance, trends in our business, projections of markets relevant to our business, the Merger (as defined herein), uncertain events and assumptions and other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements consist of, among other things, statements related to our business, operations and financial results, industry prospects, our future financial performance, and our business plans and objectives, and may include certain assumptions that underlie the forward-looking statements. These forward-looking statements are not guarantees of future performance and reflect management’s current expectations. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that might cause or contribute to such differences include those discussed in Part II, Item 1A of this Quarterly Report under the heading “Risk Factors”, as well as in other documents we have filed with the Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K for the fiscal year ended March 31, 2026. We assume no obligation to revise or update any forward-looking statement for any reason, except as required by law.

OVERVIEW

The following overview is a high-level discussion of our operating results, as well as some of the trends and drivers that affect our business. Management believes that an understanding of these trends and drivers provides important context for our results for the three months ended June 30, 2026, as well as our future prospects. This summary is not intended to be exhaustive, nor is it intended to be a substitute for the detailed discussion and analysis provided elsewhere in this Form 10-Q, including in the remainder of “Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”),” “Risk Factors,” and the Condensed Consolidated Financial Statements and related Notes. Additional information can be found in the “Business” section of our Annual Report on Form 10-K for the fiscal year ended March 31, 2026 as filed with the SEC on May 11, 2026 and in other documents we have filed with the SEC.

Proposed Merger

On September 28, 2025, we entered into a Merger Agreement pursuant to and subject to the terms and conditions of which we will be acquired by the Consortium. For further details on this proposed transaction, see Note 1 of the Condensed Consolidated Financial Statements and "Part II—Item 1A. Risk Factors" contained elsewhere in this Form 10-Q.

About Electronic Arts

Electronic Arts is a global leader in digital interactive entertainment. We develop, market, publish and deliver games, content and services that can be experienced on game consoles, PCs, and mobile devices. We create innovative games and experiences that deliver high-quality interactive entertainment and drive engagement across our global network of hundreds of millions of players. Through our live services offerings, we offer high-quality experiences designed to provide value to players and extend and enhance gameplay. These live services include extra content, subscription offerings and other revenue generated in addition to the sale of our full games. We are focusing on building games and experiences that grow the global online communities around our key franchises; deepening engagement through connecting interactive storytelling to key intellectual property; and harnessing our communities to grow in, around, and beyond our games.

29

Table of Contents

Financial Results

Our key financial results for our fiscal quarter ended June 30, 2026 were as follows:

•Total net revenue was $1,986 million, up 19 percent year-over-year.

•Live services and other net revenue was $1,472 million, up 7 percent year-over-year.

•Gross margin was 86.2 percent, up 3 percentage points year-over-year.

•Operating expenses were $1,199 million, up 7 percent year-over-year.

•Operating income was $513 million, up 89 percent year-over-year.

•Net income was $397 million with diluted earnings per share of $1.56.

•Net cash used in operating activities was $242 million, compared to net cash provided by operating activities of $17 million in the prior-year period.

•Total cash, cash equivalents and short-term investments were $2,404 million.

•We returned $48 million to stockholders through our quarterly cash dividend program.

Trends in Our Business

Live Services Business. We offer our players high-quality experiences designed to provide value to players and to extend and enhance gameplay. These live services include extra content, subscription offerings and other revenue generated in addition to the sale of our full games and free-to-play games. Our net revenue attributable to live services and other was $5,473 million, $5,433 million, and $5,476 million for the trailing twelve months ended June 30, 2026, 2025, and 2024, respectively, and we expect that live services net revenue will continue to be material to our business. Within live services and other, net revenue attributable to extra content was $4,170 million, $4,293 million, and $4,421 million for the trailing twelve months ended June 30, 2026, 2025, and 2024, respectively. Growth in live services net revenue, including extra content may not be linear due to the competitive landscape, consumer buying patterns, and other factors. Our most popular live services are the extra content in the Ultimate Team mode associated with our sports franchises. Ultimate Team allows players to collect current and former players in order to build and compete as a personalized team. Live services net revenue generated from extra content purchased within Ultimate Team, a substantial portion of which was derived from EA SPORTS FC Ultimate Team, is material to our business.

Digital Delivery of Games. In our industry, players increasingly purchase games digitally as opposed to purchasing physical discs. While this trend, as applied to our business, may not be linear due to a mix of products during a fiscal year, consumer buying patterns and other factors, over time we expect players to continue to purchase a higher proportion of our games digitally. As a result, we expect net revenue attributable to digital full game downloads to increase over time and net revenue attributable to sales of packaged goods to decrease.

Our net revenue attributable to digital full game downloads was $1,708 million, $1,478 million, and $1,343 million during fiscal years 2026, 2025, and 2024, respectively; while our net revenue attributable to packaged goods sales was $440 million, $524 million, and $672 million in fiscal years 2026, 2025, and 2024, respectively. In addition, as measured based on total units sold on Microsoft’s Xbox One and Xbox Series X and Sony’s PlayStation 4 and 5 rather than by net revenue, we estimate that 81 percent, 78 percent, and 73 percent of our total units sold during fiscal years 2026, 2025, and 2024, were sold digitally. Digital full game units are based on sales information provided by Microsoft and Sony; packaged goods units sold through are estimated by obtaining data from significant retail and distribution partners in North America, Europe and Asia, and applying internal sales estimates with respect to retail partners from which we do not obtain data. We believe that these percentages are reasonable estimates of the proportion of our games that are digitally downloaded in relation to our total number of units sold for the applicable period of measurement.

Increases in consumer adoption of digital purchase of games combined with increases in our live services revenue generally results in expansion of our gross margin, as costs associated with selling a game digitally are generally less than selling the same game through traditional retail and distribution channels.

Increased Competition. Competition in our business is intense. Our competitors range from established interactive entertainment companies to emerging start-ups. In addition, we compete with large, diversified companies that have strengthened their interactive entertainment capabilities. Our competitors have access to certain resources such as larger budgets, tools, technologies, or IP portfolios that can lead to greater consumer success and shift player time and engagement away from our products and services. In addition, our leading position within the interactive entertainment industry makes us a prime target for recruiting our executives, as well as key creative and technical talent, resulting in retention challenges and increased cost to retain and incentivize our key people.

30

Table of Contents

Concentration of Sales Among the Most Popular Games. In our industry, we see a large portion of games sales concentrated on the most popular titles. Similarly, a significant portion of our revenue has been derived from games based on a few popular titles, such as EA SPORTS FC, EA SPORTS College Football, EA SPORTS Madden NFL, Apex Legends, Battlefield, and The Sims. In particular, we have historically derived a significant portion of our net revenue from our global football franchise, the annualized version of which is consistently one of the best-selling games in the marketplace.

Net Bookings. In order to improve transparency into our business, we disclose an operating performance metric, net bookings. Net bookings is defined as the net amount of products and services sold digitally or sold-in physically in the period. Net bookings is calculated by adding total net revenue to the change in deferred net revenue for online-enabled games.

The following is a calculation of our total net bookings for the periods presented:

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30"],["(In millions)","2026","","2025"],["Net revenue","$","1,986","","","$","1,671"],["Change in deferred net revenue (online-enabled games)","(637)","","","(373)"],["Net bookings","$","1,349","","","$","1,298"]]
[[/GREPCENT_TABLE]]

Net bookings were $1,349 million for the three months ended June 30, 2026, primarily driven by sales related to our EA SPORTS FC franchise, Apex Legends, and our American football franchise. Net bookings increased $51 million, or 4 percent, as compared to the three months ended June 30, 2025, primarily due to increased sales of extra content from Apex Legends and full game and extra content sales from Battlefield 6, partially offset by a decrease in sales from Split Fiction. Live services and other net bookings were $1,116 million for the three months ended June 30, 2026, and increased $32 million, or 3 percent, as compared to the three months ended June 30, 2025. The increase in live services and other net bookings was primarily due to increased sales of extra content from Apex Legends, partially offset by decreased sales of extra content from Ultimate Team within EA SPORTS FC. Full game net bookings were $233 million for the three months ended June 30, 2026, and increased $19 million, or 9 percent, as compared to the three months ended June 30, 2025, primarily due to a year-over-year increase in sales in EA SPORTS FC and the release of EA SPORTS UFC 6, partially offset by Split Fiction.

31

Table of Contents

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Our Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the Unite

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/712515/000162828026033617/ea-20260331.htm
Complete FY 2026 MD&A: /company/EA/mda/fy2026/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-05-11
Report date: 2026-03-31

Item 7:     Management’s Discussion and Analysis of Financial Condition and Results of Operations

OVERVIEW

The following overview is a high-level discussion of our operating results, as well as some of the trends and drivers that affect our business. Management believes that an understanding of these trends and drivers provides important context for our results for the fiscal year ended March 31, 2026, as well as our future prospects. This summary is not intended to be exhaustive, nor is it intended to be a substitute for the detailed discussion and analysis provided elsewhere in this Form 10-K, including in the “Business” section and the “Risk Factors” above, the remainder of “Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)” or the Consolidated Financial Statements and related Notes.

Proposed Merger

On September 28, 2025, we entered into a Merger Agreement pursuant to and subject to the terms and conditions of which we will be acquired by the Consortium. For further details on this proposed transaction, see Note 1 of the Consolidated Financial Statements and "Part I—Item 1A. Risk Factors" contained elsewhere in this Form 10-K.

About Electronic Arts

Electronic Arts is a global leader in digital interactive entertainment. We develop, market, publish and deliver games, content and services that can be experienced on game consoles, PCs, and mobile devices. We create innovative games and experiences that deliver high-quality interactive entertainment and drive engagement across our global network of hundreds of millions of players. Through our live services offerings, we offer high-quality experiences designed to provide value to players and extend and enhance gameplay. These live services include extra content, subscription offerings and other revenue generated in addition to the sale of our full games. We are focusing on building games and experiences that grow the global online communities around our key franchises; deepening engagement through connecting interactive storytelling to key intellectual property; and harnessing our communities to grow in, around, and beyond our games.

Financial Results

Our key financial results for our fiscal year ended March 31, 2026 were as follows:

•Total net revenue was $7,531 million, up 1 percent year-over-year.

•Live services and other net revenue was $5,383 million, down 1 percent year-over-year.

•Gross margin was 79 percent, flat year-over-year.

•Operating expenses were $4,785 million, up 9 percent year-over-year.

•Operating income was $1,162 million, down 24 percent year-over-year.

•Net income was $887 million with diluted earnings per share of $3.51.

•Net cash provided by operating activities was $2,553 million, up 23 percent year-over-year.

•Total cash, cash equivalents and short-term investments were $2,980 million.

•We returned $941 million to stockholders through our capital return programs, repurchasing 5.3 million shares for approximately $750 million and returning $191 million through our quarterly cash dividend program.

Trends in Our Business

Live Services Business. We offer our players high-quality experiences designed to provide value to players and to extend and enhance gameplay. These live services include extra content, subscription offerings and other revenue generated in addition to the sale of our full games and free-to-play games. Our net revenue attributable to live services and other was $5,383 million, $5,461 million, and $5,547 million for fiscal years 2026, 2025, and 2024, respectively, and we expect that live services net revenue will continue to be material to our business. Within live services and other, net revenue attributable to extra content was $4,091 million, $4,365 million, and $4,463 million for fiscal years 2026, 2025, and 2024, respectively. Growth in live services net revenue, including extra content may not be linear due to the competitive landscape, consumer buying patterns, and other factors. Our most popular live services are the extra content in the Ultimate Team mode associated with our sports franchises. Ultimate Team allows players to collect current and former players in order to build and compete as a personalized team. Live services net revenue generated from extra content purchased within Ultimate Team, a substantial portion of which was derived from FC Ultimate Team, is material to our business.

21

Table of Contents

Digital Delivery of Games. In our industry, players increasingly purchase games digitally as opposed to purchasing physical discs. While this trend, as applied to our business, may not be linear due to a mix of products during a fiscal year, consumer buying patterns and other factors, over time we expect players to continue to purchase a higher proportion of our games digitally. As a result, we expect net revenue attributable to digital full game downloads to increase over time and net revenue attributable to sales of packaged goods to decrease.

Our net revenue attributable to digital full game downloads was $1,708 million, $1,478 million, and $1,343 million during fiscal years 2026, 2025, and 2024, respectively; while our net revenue attributable to packaged goods sales was $440 million, $524 million, and $672 million in fiscal years 2026, 2025, and 2024, respectively. In addition, as measured based on total units sold on Microsoft’s Xbox One and Xbox Series X and Sony’s PlayStation 4 and 5 rather than by net revenue, we estimate that 81 percent, 78 percent, and 73 percent of our total units sold during fiscal years 2026, 2025, and 2024, were sold digitally. Digital full game units are based on sales information provided by Microsoft and Sony; packaged goods units sold through are estimated by obtaining data from significant retail and distribution partners in North America, Europe and Asia, and applying internal sales estimates with respect to retail partners from which we do not obtain data. We believe that these percentages are reasonable estimates of the proportion of our games that are digitally downloaded in relation to our total number of units sold for the applicable period of measurement.

Increases in consumer adoption of digital purchase of games combined with increases in our live services revenue generally results in expansion of our gross margin, as costs associated with selling a game digitally are generally less than selling the same game through traditional retail and distribution channels.

Increased Competition. Competition in our business is intense. Our competitors range from established interactive entertainment companies to emerging start-ups. In addition, we compete with large, diversified companies that have strengthened their interactive entertainment capabilities. Our competitors have access to certain resources such as larger budgets, tools, technologies, or IP portfolios that can lead to greater consumer success and shift player time and engagement away from our products and services. In addition, our leading position within the interactive entertainment industry makes us a prime target for recruiting our executives, as well as key creative and technical talent, resulting in retention challenges and increased cost to retain and incentivize our key people.

Concentration of Sales Among the Most Popular Games. In our industry, we see a large portion of games sales concentrated on the most popular titles. Similarly, a significant portion of our revenue has been derived from games based on a few popular titles, such as EA SPORTS FC, EA SPORTS College Football, EA SPORTS Madden NFL, Apex Legends, Battlefield, and The Sims. In particular, we have historically derived a significant portion of our net revenue from our global football franchise, the annualized version of which is consistently one of the best-selling games in the marketplace.

Net Bookings. In order to improve transparency into our business, we disclose an operating performance metric, net bookings. Net bookings is defined as the net amount of products and services sold digitally or sold-in physically in the period. Net bookings is calculated by adding total net revenue to the change in deferred net revenue for online-enabled games.

The following is a calculation of our total net bookings for the periods presented:

[[GREPCENT_TABLE]]
[["","Year Ended March 31,"],["(In millions)","2026","","2025"],["Net revenue","$","7,531","","","$","7,463"],["Change in deferred net revenue (online-enabled games)","495","","","(108)"],["Net bookings","$","8,026","","","$","7,355"]]
[[/GREPCENT_TABLE]]

Net bookings were $8,026 million for fiscal year 2026 primarily driven by sales related to our global football, Battlefield, and American football franchises. Net bookings increased $671 million or 9 percent as compared to fiscal year 2025 primarily due to the release of Battlefield 6 and a year-over-year increase in sales from our global football franchise, partially offset by a year-over-year decrease in sales from EA SPORTS College Football, the prior year release of Dragon Age: The Veilguard, and The Sims franchise. Live services and other net bookings were $5,630 million for fiscal year 2026, and increased $292 million or 5 percent as compared to fiscal year 2025. The increase in live services and other net bookings was primarily due to increased sales of extra content within our global football franchise and from Battlefield 6, partially offset by decreased sales of extra content from Ultimate Team within EA SPORTS College Football, and The Sims 4. Full game net bookings were $2,396 million for fiscal year 2026, and increased $379 million or 19 percent as compared to fiscal year 2025 primarily due to the release of Battlefield 6, partially offset by a year-over-year decline in EA SPORTS College Football, and the prior year release of Dragon Age: The Veilguard.

22

Table of Contents

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Our Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The preparation of these Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, contingent assets and liabilities, and revenue and expenses during the reporting periods. The policies discussed below are considered by management to be critical because they are not only important to the portrayal of our financial condition and results of operations, but also because application and interpretation of these policies requires both management judgment and estimates of matters that are inherently uncertain and unknown. As a result, actual results may differ materially from our estimates.

Revenue Recognition

We derive revenue principally from sales of our games, and related extra content and services that can be experienced on game consoles, PCs, and mobile devices. Our product and service offerings include, but are not limited to, the following:

•full games with both online and offline functionality (“Games with Services”), which generally includes (1) the initial game delivered digitally or via physical disc at the time of sale and typically provide access to offline core game content (“software license”); (2) updates on a when-and-if-available basis, such as software patches or updates, and/or additional free content to be delivered in the future (“future update rights”); and (3) a hosted connection for online playability (“online hosting”);

•full games with online-only functionality which require an Internet connection to access all gameplay and functionality (“Online-Hosted Service Games”);

•extra content related to Games with Services and Online-Hosted Service Games which provides access to additional in-game content;

•subscriptions, such as EA Play and EA Play Pro, that generally offer access to a selection of full games, in-game content, online services and

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2026 MD&A: /company/EA/mda/fy2026/
All MD&A years: /company/EA/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2025 MD&A](/company/EA/mda/fy2025/): filed 2025-05-13; accession 0000712515-25-000022 (https://www.sec.gov/Archives/edgar/data/712515/000071251525000022/ea-20250331.htm)
- [FY 2024 MD&A](/company/EA/mda/fy2024/): filed 2024-05-22; accession 0000712515-24-000023 (https://www.sec.gov/Archives/edgar/data/712515/000071251524000023/ea-20240331.htm)
- [FY 2023 MD&A](/company/EA/mda/fy2023/): filed 2023-05-24; accession 0000712515-23-000028 (https://www.sec.gov/Archives/edgar/data/712515/000071251523000028/ea-20230331.htm)
- [FY 2022 MD&A](/company/EA/mda/fy2022/): filed 2022-05-25; accession 0000712515-22-000011 (https://www.sec.gov/Archives/edgar/data/712515/000071251522000011/ea-20220331.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 7372 Services-Prepackaged Software) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity

Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/EA.md · JSON record: /company/EA.json · verified financials: /company/EA/financials.json / /company/EA/financials.csv · machine TOC for the whole site: /llms.txt