Services-Prepackaged SoftwareIFRS · EUR

Electronic Arts Inc

Electronic Arts develops, publishes, and operates digital interactive entertainment for consoles, PCs, and mobile devices. Its business is built around major franchises such as EA SPORTS FC, Madden NFL, Apex Legends, Battlefield, and The Sims, with a growing mix of full-game sales, live services, subscriptions, and in-game content.

Revenue7,531m EUR
+0.9 %y/y
Operating profit (EBIT)1,162m EUR
−23.6 %y/y
EBIT margin15.4%
−4.9 ppy/y
Net income887m EUR
−20.9 %y/y

Fiscal year 2026 · change from previous year

Development 2021–2026

02,0004,0006,0008,000m EUR2021: 5,629 m EUR2021: EBIT 1,046 m EUR20212022: 6,991 m EUR2022: EBIT 1,129 m EUR20222023: 7,426 m EUR2023: EBIT 1,332 m EUR20232024: 7,562 m EUR2024: EBIT 1,518 m EUR20242025: 7,463 m EUR2025: EBIT 1,520 m EUR20252026: 7,531 m EUR2026: EBIT 1,162 m EUR20267,5311,162
RevenueOperating profit (EBIT)

Business

Share of revenue
Full games45 %

Initial game sales delivered digitally or via physical disc, including games with services and online-hosted titles.

Live services and extra content45 %

Ongoing in-game content, add-ons, subscriptions, and other recurring revenue tied to player engagement.

Mobile free-to-play7 %

Mobile titles monetized through in-app purchases and platform-based distribution, mainly on Apple and Google ecosystems.

Licensing and other3 %

Licensing revenue, advertising, and other smaller monetization streams tied to EA franchises and services.

Customers

EA sells primarily to consumers who play on consoles, PCs, and mobile devices, with demand concentrated in sports, action, shooter, racing, role-playing, and simulation genres. Its most important audiences are players of long-running franchises that generate repeat engagement and recurring spending through live services. The company also depends on platform partners and storefronts to distribute and monetize its content.

Console gamers

Buy full games and live-service content for PlayStation and Xbox ecosystems, especially sports and action franchises.

PC gamers

Purchase digital full games, subscription access, and online-hosted experiences through PC channels.

Mobile players

Engage with free-to-play and mobile-native titles, monetized through in-app purchases and platform fees.

Live-services spenders

Buy extra content, subscriptions, and ongoing gameplay enhancements tied to major franchises.

Distribution and platform partners

Sony, Microsoft, Apple, and Google distribute EA content and control access, fees, and channel policies.

Strategy

EA is focused on deepening engagement around its biggest franchises, expanding live services, and connecting gameplay to owned and licensed intellectual property. The company is also pushing multi-platform monetization across console, PC, and mobile while relying on digital distribution to improve margins and extend player lifetime value.

Build larger communities around core franchisesMedium term

Repeat engagement drives recurring spending and lowers reliance on one-time game launches.

Expand live services and subscriptionsShort term

Recurring monetization improves revenue durability and margin profile versus retail sales.

Strengthen multi-platform distributionMedium term

Console, PC, and mobile reach broadens the addressable audience and reduces dependence on one channel.

Geography

EA is a global business with players and sales across North America, Europe, and other international markets, but the filings provided do not disclose a country-level revenue split. Its operating model is heavily digital, so geography matters mainly through player demand, platform access, licensing rules, and local distribution policies rather than manufacturing footprint.

Risks

EA faces intense competition for player time, talent, and intellectual property, and its revenue is concentrated in a small number of blockbuster franchises. The company is also exposed to platform-partner dependence, since Sony, Microsoft, Apple, and Google control access, fees, and channel policies for a large share of digital sales.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Franchise concentration1Platform partner dependence2Competitive pressure3Development schedule slippage4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Franchise concentrationImpact: HighLikelihood: Medium

    A significant portion of revenue comes from a small set of titles, so weaker player demand can quickly affect results.

    ExposureEA SPORTS FCMadden NFLApex LegendsBattlefieldThe Sims
  2. Platform partner dependenceImpact: HighLikelihood: Medium

    Sony, Microsoft, Apple, and Google control storefront access, fees, and policies for digital distribution.

    Exposure: Digital net revenue and mobile platform fees

  3. Competitive pressureImpact: MediumLikelihood: Medium

    Players can shift time and spending to rival games or other entertainment options.

    ExposureConsolePCMobile engagement
  4. Development schedule slippageImpact: MediumLikelihood: Medium

    Large, complex game projects can miss launch windows and reduce expected revenue timing.

    Exposure: Major franchise releases and live-service updates

Accounting

Judgemental items
Revenue recognition for bundled game offerings

EA must allocate revenue across software licenses, future updates, and online hosting, which affects timing and margin.

Impact: Can shift revenue between current and future periods

Principal-versus-agent assessment

Most storefront sales are recorded net, but Apple App Store and Google Play are recorded gross, changing reported revenue and cost of revenue.

Impact: Affects top line, gross margin, and platform fee presentation

Seasonality and launch timing

Major franchise releases and live-service content can create quarter-to-quarter volatility in revenue and operating income.

Impact: Impacts comparability across quarters

Capitalized development and intangible assets

Game development and acquired IP can require amortization and impairment judgments.

Impact: Can materially affect operating expense and earnings

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026