EACAUTIOUS

EA Gross Margin Analysis

82.8%

Updated 249h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after paying direct production costs, and EA’s 82.8% means $0.828 of every sales dollar remains before operating expenses.

Sector Performance

95th percentile

82.8%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

83.9%(May 2026)

↓ Declining

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Deep Analysis

Gross margin is the share of revenue left after paying direct production costs, and EA’s 82.8% means $0.828 of every sales dollar remains before operating expenses.

That level is far above the sector median of 45.1%, placing EA in the 95th percentile among peers. The trend is not available: both the year-over-year change and quarter-over-quarter change are reported as N/A, so no direction can be inferred. With such a high absolute margin but no trend data, the investment picture is mixed — the level signals strong pricing power, yet the missing history prevents any judgment on whether that advantage is improving or eroding. This metric directly contradicts the overall CAUTIOUS verdict, because a 95th-percentile margin is a clear positive that would normally reduce risk. However, caution may still be justified by factors outside this metric, such as the absence of trend evidence.

Frequently Asked Questions

What does the Gross Margin tell investors about EA?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are EA's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.