Electronic Arts Inc. stock research
FY2026 Q2
Electronic Arts (EA) Gross Margin — Quarter Ended Sep 30, 2025
Revenue in the current quarter was lower than the same quarter one year earlier, while gross profit decreased in proportion, resulting in a gross margin that weakened relative to the prior year. The cost of revenue increased compared with the immediately preceding quarter, contributing to a lower gross margin sequentially.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2026 Q2
Revenue in the current quarter was lower than the same quarter one year earlier, while gross profit decreased in proportion, resulting in a gross margin that weakened relative to the prior year. The cost of revenue increased compared with the immediately preceding quarter, contributing to a lower gross margin sequentially.
- The gross margin weakened both sequentially and year-over-year, with the decline more pronounced when compared with the prior quarter due to a higher cost of revenue relative to revenue.
- Compared with the immediately preceding quarter, revenue was higher, but gross profit was stable, and the gross margin was lower. Compared with the same quarter one year earlier, revenue, gross profit, and gross margin were all lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
75.9%
Gross profit
$1.4B
Revenue
$1.8B
Cost of revenue
$443.0M
Quarter-over-quarter change
-7.4 pts
Year-over-year change
-1.6 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $1.8B | $1.4B | $443.0M | 75.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-7.4 pts
Year-over-year change
Sep 30, 2024
-1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened both sequentially and year-over-year, with the decline more pronounced when compared with the prior quarter due to a higher cost of revenue relative to revenue.
Compared with the immediately preceding quarter, revenue was higher, but gross profit was stable, and the gross margin was lower. Compared with the same quarter one year earlier, revenue, gross profit, and gross margin were all lower.
Monitor the trend in cost of revenue in relation to revenue, as the current quarter showed a notable increase in cost as a proportion of revenue compared with the prior quarter.