EA
ELECTRONIC ARTS INC.
Next earnings Jul 27, 2026 · consensus $0.83 EPS, $1.52B rev
Last earnings -0.1% on 2026-05-05
$205.21
▲ +0.08%$205.21▲ +30.61%
over 1Y
L $147.21H $205.25
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today+0.1%
1W+0.2%
1M+1.6%
3M+0.9%
YTD+0.6%
1Y+30.6%
Sell
Conviction
Horizon
Medium (3–12mo)
12-mo target
$•••
Street · 29 analysts
Hold
Fortress balance sheet and elite cash flow, but a 57x P/E on falling earnings and an eroding live-services engine — pay too much for too little growth.
P/E (price / FY diluted EPS) 57.6 · FY2026
The read
Weak on both the fundamentals and the price — little to like at the current level.
EA is a high-quality, franchise-driven business that is no longer growing. FY2026 revenue of $7.53B rose just 0.9% YoY and has been stuck in a $6.99B–$7.56B band for five straight years; meanwhile profitability is deteriorating, with net income down 20.9% to $887M, operating income down 23.6% to $1.16B (opex +9% per the 10-K), and diluted EPS down 17.4% to $3.51. The market is paying a 57.6x trailing P/E and 6.7x sales — a growth multiple — for a company whose earnings are shrinking, which is the core of the bearish case.
The deeper concern is in the filing's own disclosures: the live-services engine that defines the bull thesis is contracting. Live services and other revenue has fallen three years running ($5,547M → $5,461M → $5,383M), and the crown jewel — extra content, a substantial portion of which is FC Ultimate Team — dropped from $4,365M to $4,091M (about -6%). When the highest-margin, most-defensible revenue stream is in decline, a premium multiple becomes very hard to justify, and the 24% drop in operating income shows the cost base isn't flexing to compensate.
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jun 21, 2026, 12:11 PM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Financials · annual, by fiscal year
| Line item | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | $6.99B | $7.43B | $7.56B | $7.46B | $7.53B |
| Gross profit | $5.13B | $5.63B | $5.85B | $5.92B | $5.95B |
| Operating income | $1.13B | $1.33B | $1.52B | $1.52B | $1.16B |
| Net income | $789M | $802M | $1.27B | $1.12B | $887M |
| Diluted EPS | $2.76 | $2.88 | $4.68 | $4.25 | $3.51 |
| Net margin | 11.3% | 10.8% | 16.8% | 15.0% | 11.8% |
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$48.6B
EV / EBITDA32.7
EV / Sales6.5
EV / FCF—
P / FCF—
PEG (trailing)—
Earnings yield1.7%
FCF yield—
Quality & risk
ROIC (est.)13.6%
Free cash flow—
Total debt—
Net cash$2.86B
Altman Z-Score6.44 safe
Piotroski F-Score5/8
Capital returns
Buyback yield1.5%
Dividend yield (est.)0.4%
Shareholder yield1.9%
Shares Δ YoY-0.0%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsRecent disclosure tone has skewed negative — read the flagged items.
- 10-K Annual report2026-05-11
FY26: revenue +1% to $7.53B but net income -21%, live services -1%; OCF +23%
- 8-K Earnings results2026-05-05
Q4/FY26 results: revenue flat at $7.53B, net income fell 21% to $887M
- 8-K Other event2026-02-10
Other-events disclosure, likely update on pending ~$55B take-private merger
- 8-K Earnings results2026-02-03
Q3 FY26 quarterly results filed during pending take-private process
- 10-Q Quarterly report2026-02-03
Q3 FY26 quarterly results filed during pending take-private process
- 8-K Agreement terminated2026-01-06
Terminated a material agreement; triggering event accelerating a debt obligation
- 8-K Shareholder vote2025-12-23
Shareholders approved the ~$55B take-private merger at special meeting
- 8-K Other event2025-12-15
Other-events disclosure ahead of merger shareholder vote
- 10-Q Quarterly report2025-10-31
Q2 FY26 quarterly results filed
Recent filings
all on EDGAR ↗4Period ending 2026-06-222026-06-23open ↗4Period ending 2026-06-152026-06-16open ↗4Period ending 2026-06-152026-06-16open ↗4Period ending 2026-06-152026-06-16open ↗4Period ending 2026-06-152026-06-16open ↗4Period ending 2026-06-152026-06-16open ↗4Period ending 2026-06-152026-06-16open ↗144Filing2026-06-15open ↗144Filing2026-06-15open ↗4Period ending 2026-05-282026-05-29open ↗144Filing2026-05-28open ↗4Period ending 2026-05-202026-05-22open ↗
Frequently asked
- Is ELECTRONIC ARTS INC. (EA) a buy?
- EA currently carries a Sell rating with 3/5 conviction, derived from its latest SEC filings. Fortress balance sheet and elite cash flow, but a 57x P/E on falling earnings and an eroding live-services engine — pay too much for too little growth.
- What is EA's fair value?
- A Modified-Graham model based on EA's SEC fundamentals estimates a fair value of about $29.83. It is an estimate from reported earnings, not a price target.
- Is EA overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, EA currently appears overvalued relative to its SEC-grounded earnings power.
- What is ELECTRONIC ARTS INC.'s quality score?
- EA scores 63.76843523155703/100 (grade C+) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0000712515, latest 10-K filed 2026-05-11) · EODHD · Proprietary analysis · as of 6/21/2026, 4:11:14 PM.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.