Electronic ArtsFRA:ERT +0.57%77 Gross Margin % is 82.83% as of Mar. 2026, which is 10% above its 10-year median of 75.24. GuruFocus rates FRA:ERT with a GF Score™ of 77/100 and a GF Value™ of €137.77 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 497 Interactive Media companies, Electronic Arts ranks better than 66.6% on this metric.
The historical rank and industry rank for Electronic Arts's Gross Margin % or its related term are showing as below:
FRA:ERT'
s Gross Margin % Range Over the Past 10 Years
Min: 73.21 Med: 75.24 Max: 79.32
Current: 78.97
During the past 13 years, the highestGross Margin % of Electronic Arts was 79.32%. The lowest was 73.21%. And the median was 75.24%.
FRA:ERT's Gross Margin % is ranked better than 66.6% of 497
companies
in the Interactive Media industry
Industry Median: 62.58
vs FRA:ERT: 78.97
Electronic Arts had a gross margin of 82.83% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Electronic Arts was 1.80% per year.
Electronic Arts (FRA:ERT) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Electronic Arts had a gross margin of 82.83% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Electronic Arts Gross Margin % Related Terms
Electronic Arts Gross Margin % Historical Data
* Premium members only.
The historical data trend for Electronic Arts's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:ERT vs TTWO, RBLX, NTES: Gross Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Electronic Arts's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Electronic Arts Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Electronic Arts's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Electronic Arts's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Electronic Arts (FRA:ERT) has a Gross Margin % of 82.83% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Electronic Arts and its competitors. This is 10% above median its historical median of 75.24. Over the past decade, Electronic Arts' Gross Margin % has ranged from 73.21 to 79.32. According to the industry distribution chart, Electronic Arts ranks #166 out of 497 companies in the Interactive Media industry, placing it in the top 33.4%.
Is Electronic Arts' Gross Margin % too high?
Electronic Arts' current Gross Margin % of 82.83% is 10% above median its 10-year median of 75.24. Over the past 10 years, this metric has ranged from a low of 73.21 to a high of 79.32. The Interactive Media industry median Gross Margin % is 62.58. Electronic Arts' value of 82.83% is 32.4% above this industry median. Based on the distribution chart, Electronic Arts ranks #166 out of 497 companies in the Interactive Media industry, which is above the industry midpoint. Overall, Electronic Arts has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Electronic Arts' Gross Margin % compare to TTWO and RBLX?
According to the Interactive Media industry distribution chart, Electronic Arts ranks #166 out of 497 companies for Gross Margin %. This puts Electronic Arts in the upper half of its industry. The industry median Gross Margin % is 62.58. Electronic Arts' value of 82.83% is 32.4% above this benchmark. Historically, Electronic Arts' own Gross Margin % has ranged from 73.21 to 79.32 over the past decade. While the company's 10-year median is 75.24 vs. the industry median of 62.58, Electronic Arts has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Electronic Arts's current Gross Margin % of 82.83% is 32.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Electronic Arts and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Electronic Arts's current Gross Margin % is 82.83%, which is 10% above median its own 10-year median of 75.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Electronic Arts stock overvalued right now?
Based on GuruFocus' analysis, Electronic Arts (FRA:ERT) is currently considered Modestly Overvalued. The stock's GF Value™ is €137.77, compared to a current price of €177.00 — trading 28.5% above its estimated fair value. The current Gross Margin % is 82.83%, which is 10% above median its 10-year median of 75.24 and 32.4% above the Interactive Media industry median of 62.58. Electronic Arts' overall GF Score™ is 77/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Electronic Arts (FRA:ERT), the current Gross Margin % is 82.83% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Electronic Arts (FRA:ERT) Overvalued in 2026?
Based on GuruFocus' analysis, Electronic Arts stock appears to be overvalued.
The current stock price of €177.00 is trading 28.5% above its estimated GF Value™ of €137.77.
GuruFocus considers Electronic Arts to be Modestly Overvalued.
Key valuation signals for FRA:ERT:
Gross Margin %: 82.83% (10% above median its 10-year median of 75.24)
GF Value™: €137.77 vs. price of €177.00 (28.5% above fair value)
Industry Position: 32.4% above the Interactive Media median (#166 of 497)
No single metric tells the full story. See the FRA:ERT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Electronic Arts is one of the largest global developers and publishers of video games. Its most important franchises are the Madden NFL and FC soccer games, which it releases annually. In 2024, it also relaunched its American college football game. Other major franchises include Apex Legends, Battlefield, and The Sims. Typically, about three-quarters of the firm's sales are from in-game spending, with the remainder coming from initial game sales.
77GF Score
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