Electronic ArtsFRA:ERT +0.57%77 Net Margin % is 21.75% as of Mar. 2026, which is 37% above its 10-year median of 15.93. 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 553 Interactive Media companies, Electronic Arts ranks better than 72.15% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Electronic Arts's Net Income for the
three
months ended in Mar. 2026 was €399 Mil. Electronic Arts's Revenue for the
three
months ended in Mar. 2026 was €1,834 Mil. Therefore, Electronic Arts's net margin for the quarter that ended in Mar. 2026 was 21.75%.
The historical rank and industry rank for Electronic Arts's Net Margin % or its related term are showing as below:
FRA:ERT'
s Net Margin % Range Over the Past 10 Years
Min: 10.8 Med: 15.93 Max: 54.89
Current: 11.78
FRA:ERT's Net Margin % is ranked better than 72.15% of 553
companies
in the Interactive Media industry
Industry Median: 1.65
vs FRA:ERT: 11.78
Electronic Arts (FRA:ERT) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Electronic Arts Net Margin % Related Terms
Electronic Arts Net Margin % Historical Data
* Premium members only.
The historical data trend for Electronic Arts's Net 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: Net Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Electronic Arts's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Electronic Arts's Net Margin % distribution charts can be found below:
* The bar in red indicates where Electronic Arts's Net 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.
Electronic Arts (FRA:ERT) has a Net Margin % of 21.75% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Electronic Arts and its competitors. This is 37% above median its historical median of 15.93. Over the past decade, Electronic Arts' Net Margin % has ranged from 10.80 to 54.89. According to the industry distribution chart, Electronic Arts ranks #154 out of 553 companies in the Interactive Media industry, placing it in the top 27.8%.
Is Electronic Arts' Net Margin % too high?
Electronic Arts' current Net Margin % of 21.75% is 37% above median its 10-year median of 15.93. Over the past 10 years, this metric has ranged from a low of 10.80 to a high of 54.89. The Interactive Media industry median Net Margin % is 1.65. Electronic Arts' value of 21.75% is 1218.2% above this industry median. Based on the distribution chart, Electronic Arts ranks #154 out of 553 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' Net Margin % compare to TTWO and RBLX?
According to the Interactive Media industry distribution chart, Electronic Arts ranks #154 out of 553 companies for Net Margin %. This puts Electronic Arts in the upper half of its industry. The industry median Net Margin % is 1.65. Electronic Arts' value of 21.75% is 1218.2% above this benchmark. Historically, Electronic Arts' own Net Margin % has ranged from 10.80 to 54.89 over the past decade. While the company's 10-year median is 15.93 vs. the industry median of 1.65, 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 Net Margin % for an Interactive Media company?
The median Net Margin % among Interactive Media companies is 1.65, based on 553 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Electronic Arts's current Net Margin % of 21.75% is 1218.2% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Electronic Arts and its competitors. For the Interactive Media industry, the median Net Margin % is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Electronic Arts's current Net Margin % is 21.75%, which is 37% above median its own 10-year median of 15.93. 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 Net Margin % is 21.75%, which is 37% above median its 10-year median of 15.93 and 1218.2% above the Interactive Media industry median of 1.65. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Electronic Arts (FRA:ERT), the current Net Margin % is 21.75% 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:
Net Margin %: 21.75% (37% above median its 10-year median of 15.93)
GF Value™: €137.77 vs. price of €177.00 (28.5% above fair value)
Industry Position: 1218.2% above the Interactive Media median (#154 of 553)
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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