# Electronic Arts Inc. (EA) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Communication Services / Interactive Media & Services. Price $209.70, market value $52.9 billion.

## Valuation
- **P/E (trailing): 59.7×** (5-yr avg 41.2×, 3-yr avg 40.0×). Electronic Arts Inc. trades at 59.7× trailing earnings, well above its own five-year average of 41.2×: investors are paying up relative to the company's past. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 21.8×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 6.7×**. Each dollar of revenue is priced at 6.7×.
- **Price / book: 7.8×**. The shares trade at 7.8× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Earnings yield: 1.7%**. The inverse of the P/E: 1.7% of the price is earned each year.

## Profitability
- **Gross margin: 79.9%**. Electronic Arts Inc. keeps 79.9% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 17.9%**. 17.9% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 11.8%**. 11.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 13.1%**. 13.1% on shareholders' equity is solid.
- **Return on assets: 8.2%**. Each dollar of assets produces 8.2% of profit.

## Growth
- **Revenue growth (1 yr): 0.9%** (3-yr 0.5%/yr, 5-yr 6.0%/yr). Revenue grew 0.9% over the last year, against 6.0% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -17.4%** (3-yr 6.8%/yr, 5-yr 4.1%/yr). Earnings per share fell 17.4%, slower than revenue, so margins compressed.

## Financial health
- **Current ratio: 1.05** (quick 1.05). Current assets cover the next year's liabilities 1.05 times.
- **Altman Z-score: 6.59**. A Z-score of 6.59 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.36%** ($0.76 per share, trailing). Electronic Arts Inc. yields 0.36%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 22%**. 22% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 6**. 6 straight years of increases.
- **Dividend growth (5 yr): 34.9%/yr** (1-yr 0.0%). The dividend has compounded at 34.9% a year over five years, doubling roughly every 2 years at that pace.

## Analyst view
- **Analyst consensus: hold** (13 analysts). 13 analysts cover Electronic Arts Inc.; the consensus is hold, with an average price target of $205.46 (-2% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 31.8%** (YTD 2.8%, 3-mo 4.1%). The shares are up 31.8% over twelve months including dividends.
- **From 52-week high: -0.2%** (27.5% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 76**. An RSI of 76 is in overbought territory; short-term pullbacks are common from here.
- **Beta (1 yr): 0.13** (volatility 19%). Beta of 0.13 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=EA · Page: https://foliofundamentals.com/stocks/ea

Not investment advice.