How does Electronic Arts (EA) make money?

Electronic Arts (EA) generates revenue primarily from Live services and other, net revenue, which accounted for 71.5% of total revenue in TTM through Q1 2026. The company reported $7.53B in revenue and converted 11.8% of it into net profit, equivalent to roughly $887M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Electronic Arts (EA)?

Electronic Arts (EA) reported a gross profit margin of 79% in TTM through Q1 2026, equivalent to $5.95B in gross profit on $7.53B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Electronic Arts (EA)?

Electronic Arts (EA) reported an operating profit margin of 15.4% in TTM through Q1 2026, equivalent to $1.16B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Electronic Arts (EA)?

Electronic Arts (EA) reported a net profit margin of 11.8% in TTM through Q1 2026, equivalent to $887M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Electronic Arts (EA) profitable?

Yes. Electronic Arts (EA) reported $887M in net income for TTM through Q1 2026, with a net profit margin of 11.8%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Electronic Arts (EA) invest in research and development?

Electronic Arts (EA) invested $2.83B in research and development during TTM through Q1 2026, roughly 37.6% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Electronic Arts (EA) spend on capital expenditures?

Electronic Arts (EA) spent $230M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 3.1% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Electronic Arts (EA) generate?

Electronic Arts (EA) generated $2.32B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 30.8%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Electronic Arts (EA)?

Electronic Arts (EA) had an effective tax rate of 24.8% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Electronic Arts (EA)?

Electronic Arts (EA) reports revenue across 3 reportable product segments, led by Live services and other, net revenue at 71.5% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Electronic Arts Makes Money: 2026 Visual Revenue Map

Electronic Arts (EA) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 11, 2026).

Electronic Arts discloses geographic revenue only in annual filings. to view the full breakdown.

Electronic Arts (EA) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Electronic Arts (EA), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Live services and other, net revenue	$5.38B	71.5%
Full game downloads, net revenue	$1.71B	22.7%
Packaged goods, net revenue	$440M	5.8%
Total	$7.53B	100%

Live services and other, net revenue$5.38B
Full game downloads, net revenue$1.71B
Packaged goods, net revenue$440M
Total$7.53B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Electronic Arts (EA) reports revenue across 3 reportable product segments; the largest segment was Live services and other, net revenue at 71.5%, followed by Full game downloads, net revenue (22.7%) and Packaged goods, net revenue (5.8%).

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