Electronic Arts Inc. stock research
FY2026 Q4
Electronic Arts (EA) Gross Margin — Quarter Ended Mar 31, 2026
Revenue increased from both the prior quarter and the same quarter last year. Cost of revenue decreased sequentially but was stable year-over-year, leading gross profit and gross margin to improve compared to both periods.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q4
Revenue increased from both the prior quarter and the same quarter last year. Cost of revenue decreased sequentially but was stable year-over-year, leading gross profit and gross margin to improve compared to both periods.
- The strongest observable margin driver is the lower cost of revenue relative to revenue, which lifted gross margin sequentially and year-over-year.
- Compared with the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved. Compared with the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was similar, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
82.8%
Gross profit
$1.8B
Revenue
$2.1B
Cost of revenue
$364.0M
Quarter-over-quarter change
+9.0 pts
Year-over-year change
+2.2 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2026 | $2.1B | $1.8B | $364.0M | 82.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+9.0 pts
Year-over-year change
Mar 31, 2025
+2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the lower cost of revenue relative to revenue, which lifted gross margin sequentially and year-over-year.
Compared with the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved. Compared with the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was similar, and gross margin was higher.
Monitor the trend in cost of revenue, as it decreased sequentially but remained near the year-ago level, and changes here directly affect gross margin.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Electronic Arts Inc. (EA) | 82.8% |