Electronic Arts Inc. stock research
FY2026 Q1
Electronic Arts (EA) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit decreased compared to the prior quarter but were stable relative to the same quarter last year. Gross margin improved from the prior quarter but weakened compared to the same period a year ago.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2026 Q1
Revenue and gross profit decreased compared to the prior quarter but were stable relative to the same quarter last year. Gross margin improved from the prior quarter but weakened compared to the same period a year ago.
- The improvement in gross margin from the prior quarter was primarily due to a reduction in cost of revenue.
- Compared to the preceding quarter, revenue and gross profit were lower while cost of revenue declined, resulting in a higher gross margin. Compared to the same quarter a year earlier, revenue and gross profit were similar, but cost of revenue was higher, leading to a lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
83.3%
Gross profit
$1.4B
Revenue
$1.7B
Cost of revenue
$279.0M
Quarter-over-quarter change
+2.7 pts
Year-over-year change
-0.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 30, 2024 | $2.0B | $1.6B | $456.0M | 77.5% |
| Dec 31, 2024 | $1.9B | $1.4B | $456.0M | 75.8% |
| Mar 31, 2025 | $1.9B | $1.5B | $368.0M | 80.6% |
| Jun 30, 2025 | $1.7B | $1.4B | $279.0M | 83.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+2.7 pts
Year-over-year change
Jun 30, 2024
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin from the prior quarter was primarily due to a reduction in cost of revenue.
Compared to the preceding quarter, revenue and gross profit were lower while cost of revenue declined, resulting in a higher gross margin. Compared to the same quarter a year earlier, revenue and gross profit were similar, but cost of revenue was higher, leading to a lower gross margin.
Monitor the trend in cost of revenue as it increased year-over-year.