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Electronic Arts EA Gross margin

Gross margin at other companies

Microsoft logo
MicrosoftMSFT
68.3%-0.8pp
Take-Two Interactive Software logo
Take-Two Interactive SoftwareTTWO
57.2%+2.9pp
Netflix logo
NetflixNFLX
49%+2.1pp
Amazon logo
AmazonAMZN
50.6%+1.4pp

Other financials

Income statement

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Revenue$2.1B+11.9%
Gross profit$1.8B+15.0%
Operating income$564.0M+42.8%
Net income$461.0M+81.5%
EPS (diluted)$1.83+84.9%

Balance sheet

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Cash & equivalents$2.9B+34.1%
Total debt$369.0M+10.5%
Total equity$6.8B+5.9%
Total assets$13.1B+6.2%

Cash flow

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Operating cash flow$580.0M+5.7%
CapEx$61.0M+13.0%
Free cash flow$519.0M+4.9%

Valuation

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Market cap$50.91B
Enterprise value$48.41B
P/E57.4×
P/S6.8×

Profitability

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Operating margin15.4%-4.9pp
Net margin11.8%-3.2pp

Returns & leverage

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Return on equity13.5%-2.6pp
Debt / equity0.1×0.0×
Current ratio+0.1×

Where this comes from

Calculated from Electronic Arts’s reported figures.

Based on trailing twelve months.

The official record: Electronic Arts’s 10-K, filed May 11, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Electronic Arts's gross margin?
Electronic Arts (EA) reported gross margin of 79% in Q1 2026.
How has Electronic Arts's gross margin changed year-over-year?
Electronic Arts's gross margin decreased by 0.5% year-over-year, from 79.3% to 79%.
What is the long-term trend for Electronic Arts's gross margin?
Over 4 years (2022 to 2026), Electronic Arts's gross margin has grown at a 1.9% compound annual growth rate (CAGR), from 292.8% to 315.2%.
What does gross margin mean?
How much of every sales dollar is left after the direct cost of what was sold.
How do you interpret gross margin?
Higher and stable gross margins indicate pricing power and a durable cost structure. A declining trend signals input-cost pressure, pricing competition, or a shift toward lower-margin products.
How does gross margin compare across companies?
Highly comparable within an industry, less so across industries — software runs 70%+ while distributors run in single digits. Track the trend more than the absolute level across sectors.