Electronic Arts Inc. stock research
FY2026 Q3
Electronic Arts (EA) Gross Margin — Quarter Ended Dec 31, 2025
Revenue increased compared to the immediately preceding quarter and was consistent with the same quarter one year earlier, while gross profit remained stable across all periods. Gross margin weakened as cost of revenue increased relative to both prior periods.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2026 Q3
Revenue increased compared to the immediately preceding quarter and was consistent with the same quarter one year earlier, while gross profit remained stable across all periods. Gross margin weakened as cost of revenue increased relative to both prior periods.
- The most observable factor driving the margin change was the increase in cost of revenue, which rose while revenue remained relatively unchanged, directly compressing gross margin.
- Compared with the prior quarter, gross margin was lower; compared with the same quarter last year, gross margin was also lower. Revenue was higher than the prior quarter but unchanged from a year ago.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
73.8%
Gross profit
$1.4B
Revenue
$1.9B
Cost of revenue
$498.0M
Quarter-over-quarter change
-2.1 pts
Year-over-year change
-2.0 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $1.9B | $1.4B | $498.0M | 73.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-2.1 pts
Year-over-year change
Dec 31, 2024
-2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable factor driving the margin change was the increase in cost of revenue, which rose while revenue remained relatively unchanged, directly compressing gross margin.
Compared with the prior quarter, gross margin was lower; compared with the same quarter last year, gross margin was also lower. Revenue was higher than the prior quarter but unchanged from a year ago.
Monitor the trajectory of cost of revenue, as its increase was the primary driver of the gross margin decline.