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Electronic Arts (EA) Up 0.9% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Electronic Arts (EA - Free Report) . Shares have added about 0.9% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Electronic Arts due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Electronic Arts Inc. before we dive into how investors and analysts have reacted as of late.
Electronic Arts Q4 Earnings Miss Estimates, Revenues Increase Y/Y
Electronic Arts reported fourth-quarter fiscal 2026 earnings of $1.59 per share, increasing 3.2% year over year but missing the Zacks Consensus Estimate of $2.25 by 29.3%.
Revenues increased 12% year over year to $2.12 billion and beat the consensus mark of $2.00 billion.
For the fourth quarter of fiscal 2026, EA’s net bookings were $1.86 billion, up 3.6% year over year. Management highlighted Battlefield 6’s record fiscal-year performance and noted Apex Legends delivered its strongest net bookings in the fourth quarter of fiscal 2026, alongside growth across Global Football properties.
Q4 Details of EA
EA’s full-game revenues (28.7% of total revenues) increased 39.4% year over year to $609 million. Full-game download revenues rose 43.9% year over year to $528 million. Packaged goods increased 15.7% year over year to $81 million.
Live services and other revenues (71.3% of total revenues) increased 3.6% year over year to $1.51 billion.
By platform, console revenues increased 9.4% year over year to $1.29 billion. PC & Other revenues jumped 30.3% to $555 million (from $426 million). Mobile revenues declined 5.2% to $272 million.
EA Expands Profit Despite Higher Operating Costs
EA’s cost discipline showed up in margins even as spending increased. GAAP gross profit increased 15% year over year to $1.76 billion. Gross margin expanded 220 basis points on a year-over-year basis to 82.8%.
Operating expenses increased 5.3% year over year to $1.19 billion. As a percentage of revenues, operating expenses contracted from 59.7% in the year-ago quarter to 56.2%. Research and development climbed to $732 million, while marketing and sales rose to $254 million.
Even with these increases, operating income on a GAAP basis improved to $564 million, increased 42.8% year over year, lifting the operating margin to 26.6%.
Electronic Arts' Balance Sheet & Cash Flow
As of March 31, 2026, EA had $2.98 billion in cash and short-term investments compared with $2.9 billion as of Dec. 31, 2025.
Net cash provided by operating activities was $580 million for the quarter and $2.55 billion for the trailing 12 months. Likewise, free cash flow was $519 million for the quarter and $2.32 billion for the trailing 12 months.
Deferred net revenues tied to online-enabled games rose to $2.23 billion, reflecting the company’s ongoing exposure to live services and digitally delivered content recognition timing.
EA declared a quarterly cash dividend of 19 cents per share, payable June 17, 2026, to its shareholders of record as of May 27.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Electronic Arts has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Electronic Arts has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Electronic Arts belongs to the Zacks Gaming industry. Another stock from the same industry, Red Rock Resorts (RRR - Free Report) , has gained 7.5% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Red Rock Resorts reported revenues of $507.32 million in the last reported quarter, representing a year-over-year change of +1.9%. EPS of $0.73 for the same period compares with $0.80 a year ago.
Red Rock Resorts is expected to post earnings of $0.33 per share for the current quarter, representing a year-over-year change of -65.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -21.3%.
Red Rock Resorts has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Electronic Arts (EA) Up 0.9% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Electronic Arts (EA - Free Report) . Shares have added about 0.9% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Electronic Arts due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Electronic Arts Inc. before we dive into how investors and analysts have reacted as of late.
Electronic Arts Q4 Earnings Miss Estimates, Revenues Increase Y/Y
Electronic Arts reported fourth-quarter fiscal 2026 earnings of $1.59 per share, increasing 3.2% year over year but missing the Zacks Consensus Estimate of $2.25 by 29.3%.
Revenues increased 12% year over year to $2.12 billion and beat the consensus mark of $2.00 billion.
For the fourth quarter of fiscal 2026, EA’s net bookings were $1.86 billion, up 3.6% year over year. Management highlighted Battlefield 6’s record fiscal-year performance and noted Apex Legends delivered its strongest net bookings in the fourth quarter of fiscal 2026, alongside growth across Global Football properties.
Q4 Details of EA
EA’s full-game revenues (28.7% of total revenues) increased 39.4% year over year to $609 million. Full-game download revenues rose 43.9% year over year to $528 million. Packaged goods increased 15.7% year over year to $81 million.
Live services and other revenues (71.3% of total revenues) increased 3.6% year over year to $1.51 billion.
By platform, console revenues increased 9.4% year over year to $1.29 billion. PC & Other revenues jumped 30.3% to $555 million (from $426 million). Mobile revenues declined 5.2% to $272 million.
EA Expands Profit Despite Higher Operating Costs
EA’s cost discipline showed up in margins even as spending increased. GAAP gross profit increased 15% year over year to $1.76 billion. Gross margin expanded 220 basis points on a year-over-year basis to 82.8%.
Operating expenses increased 5.3% year over year to $1.19 billion. As a percentage of revenues, operating expenses contracted from 59.7% in the year-ago quarter to 56.2%. Research and development climbed to $732 million, while marketing and sales rose to $254 million.
Even with these increases, operating income on a GAAP basis improved to $564 million, increased 42.8% year over year, lifting the operating margin to 26.6%.
Electronic Arts' Balance Sheet & Cash Flow
As of March 31, 2026, EA had $2.98 billion in cash and short-term investments compared with $2.9 billion as of Dec. 31, 2025.
Net cash provided by operating activities was $580 million for the quarter and $2.55 billion for the trailing 12 months. Likewise, free cash flow was $519 million for the quarter and $2.32 billion for the trailing 12 months.
Deferred net revenues tied to online-enabled games rose to $2.23 billion, reflecting the company’s ongoing exposure to live services and digitally delivered content recognition timing.
EA declared a quarterly cash dividend of 19 cents per share, payable June 17, 2026, to its shareholders of record as of May 27.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Electronic Arts has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Electronic Arts has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Electronic Arts belongs to the Zacks Gaming industry. Another stock from the same industry, Red Rock Resorts (RRR - Free Report) , has gained 7.5% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Red Rock Resorts reported revenues of $507.32 million in the last reported quarter, representing a year-over-year change of +1.9%. EPS of $0.73 for the same period compares with $0.80 a year ago.
Red Rock Resorts is expected to post earnings of $0.33 per share for the current quarter, representing a year-over-year change of -65.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -21.3%.
Red Rock Resorts has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.