Electronic Arts Inc. develops, markets, publishes, and delivers games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation through owned and licensed brands, such as EA SPORTS FC, Battlefield, Apex Legends, The Sims, Madden NFL, Need for Speed, Titanfall, and F1 brands. The company licenses its games to third parties to distribute and host its games and content. It markets and sells its games and services through digital distribution and retail channels, as well as directly to mass market retailers, specialty stores, and distribution arrangements. Electronic Arts Inc. was incorporated in 1982 and is headquartered in Redwood City, California.

Electronic Arts Inc. демонстрирует высокие мультипликаторы, значительно превышающие медианные значения отрасли, что может указывать на переоцененность. Например, P/E составляет 75.49, что на 391.5% выше медианы, что говорит о высоких ожиданиях роста от инвесторов. Тем не менее, компания показывает стабильный рост выручки и чистой прибыли, что является положительным фактором. Операционные маржи находятся на уровне медианы, что позволяет поддерживать конкурентоспособное положение. Долговая нагрузка низкая с debt-equity ratio 0.24, что снижает финансовые риски. Однако текущий коэффициент ниже медианы, что может указывать на проблемы с ликвидностью. В целом, несмотря на сильные финансовые показатели, высокая оценка компании по мультипликаторам ставит под сомнение текущую целевую цену.

Electronic Arts Inc.

EA демонстрирует высокие мультипликаторы, низкую долговую нагрузку и стабильный рост прибыли, но переоцененность вызывает вопросы о целевой цене.

Electronic Arts EA reported fourth-quarter fiscal 2026 earnings of $1.59 per share, increasing 3.2% year over year but missing the Zacks Consensus Estimate of $2.25 by 29.3%.
Revenues increased 12% year over year to $2.12 billion and beat the consensus mark of $2.00 billion.
For the fourth quarter of fiscal 2026, EA’s net bookings were $1.86 billion, up 3.6% year over year. Management highlighted Battlefield 6’s record fiscal-year performance and noted Apex Legends delivered its strongest net bookings in the fourth quarter of fiscal 2026, alongside growth across Global Football properties.
Electronic Arts Inc. Price, Consensus and EPS Surprise
Q4 Details of EA
EA’s full-game revenues (28.7% of total revenues) increased 39.4% year over year to $609 million. Full-game download revenues rose 43.9% year over year to $528 million. Packaged goods increased 15.7% year over year to $81 million.
Electronic Arts Inc. Price, Consensus and EPS Surprise
Live services and other revenues (71.3% of total revenues) increased 3.6% year over year to $1.51 billion.
By platform, console revenues increased 9.4% year over year to $1.29 billion. PC & Other revenues jumped 30.3% to $555 million (from $426 million). Mobile revenues declined 5.2% to $272 million.
EA Expands Profit Despite Higher Operating Costs
EA’s cost discipline showed up in margins even as spending increased. GAAP gross profit increased 15% year over year to $1.76 billion. Gross margin expanded 220 basis points on a year-over-year basis to 82.8%.
Operating expenses increased 5.3% year over year to $1.19 billion. As a percentage of revenues, operating expenses contracted from 59.7% in the year-ago quarter to 56.2%. Research and development climbed to $732 million, while marketing and sales rose to $254 million.
Even with these increases, operating income on a GAAP basis improved to $564 million, increased 42.8% year over year, lifting the operating margin to 26.6%.
Electronic Arts' Balance Sheet & Cash Flow
As of March 31, 2026, EA had $2.98 billion in cash and short-term investments compared with $2.9 billion as of Dec. 31, 2025.
Net cash provided by operating activities was $580 million for the quarter and $2.55 billion for the trailing 12 months. Likewise, free cash flow was $519 million for the quarter and $2.32 billion for the trailing 12 months.
Deferred net revenues tied to online-enabled games rose to $2.23 billion, reflecting the company’s ongoing exposure to live services and digitally delivered content recognition timing.
EA declared a quarterly cash dividend of 19 cents per share, payable June 17, 2026, to shareholders of record as of May 27.
Electronic Arts’ Zacks Rank & Stocks to Consider
EA currently carries a Zacks Rank #3 (Hold).
American Public Education APEI, Fox FOX and Hasbro HAS are some better-ranked stocks that investors can consider in the broader Consumer Discretionary sector.
American Public Education sports a Zacks Rank #1 (Strong Buy) at present, while Fox and Hasbro carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Public Education is slated to announce first-quarter 2026 results on May 11. Meanwhile, Fox will report on May 11, while Hasbro is scheduled to release results on May 20.
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Electronic Arts Q4 Earnings Miss Estimates, Revenues Increase Y/Y

Electronic Arts (EA) came out with quarterly earnings of $1.59 per share, missing the Zacks Consensus Estimate of $2.25 per share. This compares to earnings of $1.54 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -29.45%. A quarter ago, it was expected that this video game maker would post earnings of $4.77 per share when it actually produced earnings of $4.82, delivering a surprise of +1.05%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Electronic Arts, which belongs to the Zacks Gaming industry, posted revenues of $1.86 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 6.48%. This compares to year-ago revenues of $1.8 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Electronic Arts shares have lost about 1.2% since the beginning of the year versus the S&P 500's gain of 5.2%.
What's Next for Electronic Arts?
While Electronic Arts has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Electronic Arts was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.77 on $1.46 billion in revenues for the coming quarter and $9.39 on $8.4 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Gaming is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Take-Two Interactive (TTWO), is yet to report results for the quarter ended March 2026. The results are expected to be released on May 21.
This publisher of "Grand Theft Auto" and other video games is expected to post quarterly earnings of $0.58 per share in its upcoming report, which represents a year-over-year change of -46.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Take-Two Interactive's revenues are expected to be $1.55 billion, down 1.9% from the year-ago quarter.
Should You Invest in Electronic Arts Inc. (EA)?
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Electronic Arts (EA) Q4 Earnings and Revenues Lag Estimates

(RTTNews) - Electronic Arts Inc (ERTS) announced a profit for its fourth quarter that Increased, from last year
The company's earnings totaled $461 million, or $1.81 per share. This compares with $254 million, or $0.98 per share, last year.
The company's revenue for the period rose 11.9% to $2.120 billion from $1.895 billion last year.
Electronic Arts Inc earnings at a glance (GAAP) :
-Earnings: $461 Mln. vs. $254 Mln. last year. -EPS: $1.81 vs. $0.98 last year. -Revenue: $2.120 Bln vs. $1.895 Bln last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Electronic Arts Inc Bottom Line Climbs In Q4

The following companies are expected to report earnings after hours on 05/05/2026. Visit our Earnings Calendar for a full list of expected earnings releases.
Advanced Micro Devices, Inc. (AMD)is reporting for the quarter ending March 31, 2026. The computer company's consensus earnings per share forecast from the 11 analysts that follow the stock is $1.06. This value represents a 35.90% increase compared to the same quarter last year. AMD missed the consensus earnings per share in the 2nd calendar quarter of 2025 by -3.57%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for AMD is 58.68 vs. an industry ratio of 21.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Arista Networks, Inc. (ANET)is reporting for the quarter ending March 31, 2026. The internet software company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.72. This value represents a 14.29% increase compared to the same quarter last year. In the past year ANET has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 10.45%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for ANET is 54.45 vs. an industry ratio of 39.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Suncor Energy Inc. (SU)is reporting for the quarter ending March 31, 2026. The oil company's consensus earnings per share forecast from the 2 analysts that follow the stock is $1.45. This value represents a 59.34% increase compared to the same quarter last year. In the past year SU has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 2.6%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for SU is 10.20 vs. an industry ratio of 14.40.
Emerson Electric Company (EMR)is reporting for the quarter ending March 31, 2026. The machinery company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.54. This value represents a 4.05% increase compared to the same quarter last year. In the past year EMR has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2026 Price to Earnings ratio for EMR is 20.84 vs. an industry ratio of 23.90.
EOG Resources, Inc. (EOG)is reporting for the quarter ending March 31, 2026. The oil (us exp & production) company's consensus earnings per share forecast from the 9 analysts that follow the stock is $3.07. This value represents a 6.97% increase compared to the same quarter last year. In the past year EOG has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 3.18%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for EOG is 9.60 vs. an industry ratio of 17.50.
Lumentum Holdings Inc. (LITE)is reporting for the quarter ending March 31, 2026. The communications company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.81. This value represents a 703.33% increase compared to the same quarter last year. LITE missed the consensus earnings per share in the 1st calendar quarter of 2025 by -600%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for LITE is 166.30 vs. an industry ratio of 37.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Occidental Petroleum Corporation (OXY)is reporting for the quarter ending March 31, 2026. The oil company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.62. This value represents a 28.74% decrease compared to the same quarter last year. In the past year OXY has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 63.16%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for OXY is 13.25 vs. an industry ratio of -5.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Strategy Inc (MSTR)is reporting for the quarter ending March 31, 2026. The financial services company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-3.41. This value represents a 79.32% increase compared to the same quarter last year. MSTR missed the consensus earnings per share in the 4th calendar quarter of 2025 by -193.29%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for MSTR is 1.35 vs. an industry ratio of 16.30.
Corteva, Inc. (CTVA)is reporting for the quarter ending March 31, 2026. The agriculture company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.18. This value represents a 4.42% increase compared to the same quarter last year. In the past year CTVA has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 4.76%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for CTVA is 22.57 vs. an industry ratio of 5.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Electronic Arts Inc. (EA)is reporting for the quarter ending March 31, 2026. The gaming company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.66. This value represents a 61.17% increase compared to the same quarter last year. EA missed the consensus earnings per share in the 3rd calendar quarter of 2025 by -9.72%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for EA is 30.86 vs. an industry ratio of 13.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Live Nation Entertainment, Inc. (LYV)is reporting for the quarter ending March 31, 2026. The movie/tv production company's consensus earnings per share forecast from the 7 analysts that follow the stock is $-0.27. This value represents a 15.63% increase compared to the same quarter last year. Zacks Investment Research reports that the 2026 Price to Earnings ratio for LYV is 113.37 vs. an industry ratio of 40.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Alcon Inc. (ALC)is reporting for the quarter ending March 31, 2026. The medical instruments company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.80. This value represents a 9.59% increase compared to the same quarter last year. Zacks Investment Research reports that the 2026 Price to Earnings ratio for ALC is 21.24 vs. an industry ratio of -0.50, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

After-Hours Earnings Report for May 5, 2026 : AMD, ANET, SU, EMR, EOG, LITE, OXY, MSTR, CTVA, EA, LYV, ALC

(RTTNews) - Digital interactive entertainment provider Electronic Arts Inc. (EA) Monday announced a multi-year collaboration with digital payments major Visa Inc. (V) to deliver the next generation of immersive, player-first experiences across EA SPORTS franchises.
The partnership will be boffering in-game rewards and experiences for EA SPORTS' global community of fans. EA SPORTS will create tailored content as part of the partnership to drive meaningful and measurable value for partners and players alike.
The partnership will introduce immersive experiences that feel organic, premium and contextually relevant, leveraging dynamic technology designed to enhance gameplay without disrupting the experience.
Within EA SPORTS FC, players can participate in limited-time challenges and live moments that grant in-game rewards as they play and compete. Further, players around the world can earn in-game rewards and participate in a branded Visa Objective in EA SPORTS FC 26, including Squad Building Challenges and a branded Visa Live Game Mode.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Electronic Arts Partners With Visa To Offer Player Experience, In-Game Rewards

Wall Street analysts forecast that Electronic Arts (EA) will report quarterly earnings of $2.25 per share in its upcoming release, pointing to a year-over-year increase of 46.1%. It is anticipated that revenues will amount to $1.99 billion, exhibiting an increase of 10.8% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
Given this perspective, it's time to examine the average forecasts of specific Electronic Arts metrics that are routinely monitored and predicted by Wall Street analysts.
Analysts forecast 'Net revenue by composition- Live services and other- Non-GAAP (Net Bookings)' to reach $1.57 billion. The estimate indicates a year-over-year change of +11.3%.
The average prediction of analysts places 'Net revenue by composition- Full game- Full game downloads- Non-GAAP (Net Bookings)' at $368.25 million. The estimate indicates a change of +8.3% from the prior-year quarter.
Based on the collective assessment of analysts, 'Net revenue by composition- Full game- Packaged goods- Non-GAAP (Net Bookings)' should arrive at $55.97 million. The estimate indicates a year-over-year change of +27.2%.
The consensus among analysts is that 'Net Bookings' will reach $1.99 billion. The estimate is in contrast to the year-ago figure of $1.80 billion.
View all Key Company Metrics for Electronic Arts here>>>
Shares of Electronic Arts have experienced a change of -0.5% in the past month compared to the +12.2% move of the Zacks S&P 500 composite. With a Zacks Rank #2 (Buy), EA is expected to outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Gear Up for Electronic Arts (EA) Q4 Earnings: Wall Street Estimates for Key Metrics

The increasing adoption of AI across the video game industry is enhancing its growth outlook, particularly through improved profitability, enhanced efficiency and reduced production costs. According to analysts at Morgan Stanley, advanced AI tools could slash game development costs by nearly 50%, potentially unlocking about $22 billion in annual profits worldwide, as quoted on a Reuters article.
This is a tailwind for the industry, which appears to be regaining momentum. The TriplePoint Video Game Index, a global benchmark tracking publicly listed video game companies, remains down about 18.97% year to date, but shows a 7.77% gain over the past month. The index has posted gains of 8.91% over the past year.
Improving risk-on sentiment, as investors increasingly look past Middle East-driven volatility, could further support the sector’s momentum, further strengthening its growth prospects. According to Fortune Business Insights, the growth outlook of the industry remains optimistic, with market revenues anticipated to witness a CAGR of 6.30% from 2026 to 2034, reaching a valuation of $415.78 billion in 2034.
Diving Deeper Into AI-Driven Profit Gains
According to Morgan Stanley, as quoted on the abovementioned Reuters article, the integration of AI tools to automate key development processes, including environment creation, dialogue generation and testing, is expected to compress timelines, reduce costs and drive margin expansion. The Wall Street brokerage notes that game development, traditionally costly and labor-intensive, could become more efficient as AI supports smaller teams and quicker post-launch updates.
In addition to cost efficiencies, AI could lift revenues by extending player engagement and driving higher spending on add-ons, in-game purchases and subscriptions. The brokerage notes that publishers could pivot toward enhancing existing franchises using AI-driven content rather than relying solely on new launches, helping stabilize earnings.
Morgan Stanley expects global video game spending to reach $275 billion this year, with nearly $55 billion flowing back into development and operations, underscoring the scale of reinvestment in the industry.
According to Morgan Stanley, platforms and operators, including Tencent, Sony and Roblox, are likely to be primary beneficiaries, alongside scaled publishers such as Take-Two TTWO, Electronic Arts EA and Ubisoft. Meanwhile, weaker franchises could come under pressure as AI reduces barriers to entry and increases competition.
Improving Hardware Sales Signal Strength
According to data from Circana, as quoted on Insider Gaming, video game hardware sales in the United States posted a strong rebound in March of this year, jumping 69% year over year. Sales totaled $500 million between March 1 and April 4, compared with $297 million a year earlier.
So far in 2026, video game hardware sales have risen 38% year over year, totaling $1.07 billion through the first three months versus $777 million a year earlier. The increase reflects stronger demand, after consumers had held back purchases ahead of the anticipated launch of the Nintendo Switch 2.
As quoted on the abovementioned article, the performance was led by the Nintendo Switch 2, which ranked first in both unit and dollar sales, while the PS5 ranked second and rose 3% year over year.
GTA VI Could Add Fuel to Gaming Sector Growth
The highly anticipated GTA VI, which is expected to be released in November this year, could make 2026 a massive year for the video game industry. According to Circana, as cited in an early February GameSpot article and as quoted on Yahoo Finance, the launch of GTA VI is expected to support a record-breaking year, with total industry revenue forecast at $62.8 billion, implying a 3% increase from 2025’s $60.7 billion.
Circana also states that the game has the highest “purchase intent” ever recorded and expects it to boost accessory and subscription sales.
Video Gaming ETFs to Play the Upside
Investors can take a look at the following video-gaming ETFs to increase their exposure to the market. Investors can consider VanEck Video Gaming and eSports ETF ESPO, Global X Video Games & Esports ETF HERO, Amplify Video Game Leaders ETF GAMR and Roundhill Video Games ETF NERD.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Video Gaming Industry's $22B AI Profit Boost: ETFs to Tap the Upside

Netflix NFLX reported the first quarter of 2026 earnings of $1.23 per share, which increased 86.4% from 66 cents a year ago. The figure beat the Zacks Consensus Estimate of 76 cents.
Quarterly revenues rose 16.2% year over year to $12.25 billion, modestly beating the consensus mark by 0.65%. Management attributed the upside versus guidance to slightly higher-than-planned subscription revenues.
Revenue growth in the quarter was driven primarily by membership growth, higher pricing, and increased advertising revenues. The company cited that results landed slightly above its internal forecast due to higher-than-forecasted membership growth and favorable foreign exchange movements net of hedging. Notably, Netflix no longer provides quarterly updates on its membership numbers.
Management also emphasized that recent price changes have “gone well,” reflecting the value proposition, while the advertising business remains on track to reach about $3 billion in 2026, doubling from 2025.
The company noted strong adoption of its ad-supported tier, with the ads plan representing more than 60% of sign-ups within ads countries during the quarter.
Netflix, Inc. Price, Consensus and EPS Surprise
NFLX Engagement and Content Initiatives Continue to Broaden
On engagement, the company said its primary internal quality metric reached another all-time high in the first quarter of fiscal 2026.
The first quarter featured exceptional content performance led by the fourth season of Bridgerton, which generated 94 million views.
Other successful first-quarter releases included One Piece S2 (40M views). Given the franchise’s multi-generational fanbase, Netflix recently announced a third season of the series, along with a LEGO One Piece animated special and a One Piece anime series.
Netflix's live programming strategy continued to deliver disproportionate impact. In the first quarter, Netflix aired more than 70 live events, including their first regional live event with the World Baseball Classic, exclusively for members in Japan. This massive event delivered 31.4 million viewers, becoming the company’s most-watched program ever on Netflix in Japan, and sparked the largest day of sign-ups in the country. As a result, among the 190+ countries in which Netflix operates, Japan was the largest contributor to member growth in the first quarter.
The March 21st live airing of BTS The Comeback Live delivered 18.4 million global viewers, reached the weekly Top 10 in 80 countries and secured the #1 spot in 24 countries.
Netflix continued to broaden its entertainment offering beyond core series and films. It pointed to early traction in video podcasts, which management said are over-indexing on daytime viewing and mobile usage, and to progress in games, including the early-April launch of a standalone kids gaming app, Netflix Playground. The company also said it is redesigning its mobile experience, including a vertical video discovery feed slated to launch at the end of the month.
NFLX Profitability Reflected Operating Leverage and Other Income
Operating income increased 18.2% year over year to $4 billion, with operating margin expanding to 32.3% from 31.7% in the year-ago quarter, slightly above its forecast due to higher-than-forecasted revenues.
Below the operating line, the quarter included a $2.8 billion termination fee related to the Warner Bros. transaction that was recognized in “interest and other income,” which the company cited as a driver of earnings versus its forecast. Management reiterated that its primary financial metrics are revenues for growth and operating margin for profitability.
NFLX Cash Flow and Capital Allocation Strengthened
Cash generation stepped up meaningfully. Net cash provided by operating activities totaled $5.3 billion in the first quarter of fiscal 2026 versus $2.8 billion a year earlier, aided in part by the cash receipt tied to the termination fee. Free cash flow rose to $5.1 billion from $2.7 billion in the prior-year quarter.
On the balance sheet, Netflix ended the quarter with $12.3 billion in cash and cash equivalents and $14.4 billion of gross debt. The company said its cash position was elevated due to a pause in share repurchases during the Warner Bros. process and the subsequent receipt of the termination fee, but it has resumed buybacks. During the quarter, Netflix repurchased 13.5 million shares for $1.3 billion, leaving $6.8 billion remaining on its authorization.
NFLX Outlook Maintained as Netflix Targets 2026 Margin Expansion
Netflix maintained its full-year 2026 outlook, projecting revenues of $50.7-$51.7 billion and an operating margin of 31.5%. For the second quarter of 2026, the company forecasts revenue of $12.57 billion and an operating margin of 32.6%. Management also reiterated that content amortization growth will be first-half weighted due to the timing of title launches, with the highest year-over-year content amortization growth expected in the second quarter before decelerating in the back half of the year.
Executives framed the longer-run opportunity around expanding entertainment value, leveraging technology (including generative AI) to improve the member experience and content creation, and improving monetization through distribution, plans and pricing, and advertising. Netflix continues to expect advertising revenues of about $3 billion in 2026, and highlighted the growing advertiser base and increased programmatic buying on its platform.
The company has an exciting slate for the balance of the year, including films Here Comes the Flood with Denzel Washington, Greta Gerwig’s Narnia, and David Fincher’s follow-up to Once Upon a Time In Hollywood; and series like Will Ferrell’s The Hawk, One Hundred Years of Solitude S2 and Lupin Part 4.
Zacks Rank & Other Stocks to Consider
Currently, Netflix carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Consumer Discretionary sector include Sirius XM SIRI, Electronic Arts EA and Warner Music Group WMG, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SiriusXM, Electronic Arts and Warner Music Group are set to report their quarterly results on April 30, May 5 and May 7, respectively.
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One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.
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Netflix Q1 Earnings & Revenues Top Estimates on Subscription Growth

For Immediate Release
Chicago, IL – April 16, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Netflix Inc. NFLX, Ralph Lauren Corp. RL, Roku Inc. ROKU, Take-Two Interactive Software Inc. TTWO and Electronic Arts Inc. EA.
Here are highlights from Wednesday’s Analyst Blog:
5 Big Consumer Discretionary Stocks to Buy Despite Recent Headwinds
The consumer discretionary sector has witnessed moderate growth in the past year, despite a strong rally in U.S. stock markets. The situation has aggravated as the sector is in the negative year to date.
Structurally, the consumer discretionary sector is growth-oriented. The share prices of these companies grow over a long time period. Growth sectors are sensitive to the movement of market interest rates and are inversely related.
Over the last two years, the Fed opted for easy monetary policies with a significant cut in the benchmark lending rate. However, market participants are uncertain about the trajectory of interest rates this year. Moreover, geopolitical conflicts and the breakout of war in the Middle East also affected growth stocks.
Despite these negatives, we have selected five consumer discretionary stocks with a favorable Zacks Rank for investment. These are: Netflix Inc., Ralph Lauren Corp., Roku Inc., Take-Two Interactive Software Inc. and Electronic Arts Inc. Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Netflix Inc.
Zacks Rank #2 Netflix is benefiting from its growing subscriber base, thanks to a robust localized and foreign-language content portfolio and healthy engagement levels with about two hours of viewing per member per day, indicating strong member retention.
NFLX surpassed the 325 million paid memberships milestone during the fourth quarter of 2025. The company made great progress growing advertising revenues in 2025. Ad revenues grew more than 2.5 times year over year in 2025 to more than $1.5 billion.
NFLX has set an ambitious target to double its revenues by 2030 and reach a $1 trillion market capitalization, supported by a diversified content strategy, including international programming, live events, and gaming initiatives.
In 2025, NFLX began testing new artificial intelligence (AI) tools to help advertisers create custom ads based on its intellectual property, with plans to build on this progress in 2026. The company also introduced automated workflows for ad concepts and used advanced AI models to streamline campaign planning, significantly speeding up these processes.
Netflix has an expected revenue and earnings growth rate of 13.7% and 25.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last seven days.
Ralph Lauren Corp.
Zacks Rank #2 Ralph Lauren has benefited from the execution of its “Next Great Chapter: Drive Plan” and robust financial performance. The plan focuses on brand elevation, consumer centricity and operational agility. RL’s digital transformation drives growth, with investments in personalization, mobile, omnichannel and fulfillment enhancing consumer engagement.
Retail and wholesale remain the key pillars of RL, with flagship stores, premium distribution and partnerships boosting comparable sales across North America, Europe and Asia. For fiscal 2026, RL expects revenues to increase in the high-single to low-double digits on a constant currency basis. While gross margin is likely to increase 40-80 bps, operating margin is expected to expand 100-140 bps in constant currency.
Ralph Lauren has an expected revenue and earnings growth rate of 6.5% and 11%, respectively, for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 2% over the last 60 days.
Roku Inc.
Zacks Rank #1 Roku’s growth is driven by platform revenues, supported by accelerating streaming adoption and strong monetization potential from its large logged-in household base. Stable platform gross margins highlight that growth is not sacrificing profitability, while expanding ARPU remains a key upside lever.
ROKU’s diversified advertising ecosystem, including upfronts to self-serve tools, positions the company to capture shifting budgets toward connected television. ROKU’s deep integrations with major demand-side platforms and a growing subscription aggregation model strengthen engagement and recurring revenues.
ROKU has gradually enhanced this experience with AI-driven content recommendations, improved search functionality and strategic content placement. Its content discovery improvements, including AI-generated viewing recommendations and subscription-aware content details pages, are reducing cancellation rates and improving conversion.
ROKU has an expected revenue and earnings growth rate of 16.3% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 65.3% over the last 60 days.
Take-Two Interactive Software Inc.
Zacks Rank #2 Take-Two Interactive Software benefits from steady net bookings growth driven by strong engagement across core franchises and an expanding mobile portfolio, supported by a well-balanced platform mix across mobile, console and PC.
A robust release pipeline, including GTA VI and WWE 2K26 and major upcoming titles, positions TTWO to establish a higher revenue baseline and profitability. TTWO’s operating leverage is emerging as revenues scale faster than costs, boosting operating cash flow and enhancing financial flexibility. TTWO’s proactive AI adoption also supports efficiency and long-term margin potential.
Take-Two Interactive Software has an expected revenue and earnings growth rate of 37.3% and more than 100%, respectively, for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 0.9% over the last 30 days.
Electronic Arts Inc.
Zacks Rank #2 Electronic Arts benefits from a strong portfolio led by its global football franchise, Battlefield and Apex Legends, which drive player engagement and monetization. This ecosystem supports EA’s recurring engagement through extra content purchases and live-service spending.
Live services remain a key revenue driver for EA, extending the lifecycle of major titles through subscriptions and in-game monetization. EA’s strong cash flow and liquidity further support shareholder returns and continued investment in core franchises and live-service expansion.
Electronic Arts has an expected revenue and earnings growth rate of 3.1% and 8.2%, respectively, for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 1.4% over the last 60 days.
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https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Netflix, Inc. (NFLX) : Free Stock Analysis Report
Roku, Inc. (ROKU) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Zacks Analyst Blog Highlights Netflix, Ralph Lauren, Roku, Take-Two Interactive and Electronic Arts

The consumer discretionary sector has witnessed moderate growth in the past year, despite a strong rally in U.S. stock markets. The situation has aggravated as the sector is in the negative year to date.
Structurally, the consumer discretionary sector is growth-oriented. The share prices of these companies grow over a long time period. Growth sectors are sensitive to the movement of market interest rates and are inversely related.
Over the last two years, the Fed opted for easy monetary policies with a significant cut in the benchmark lending rate. However, market participants are uncertain about the trajectory of interest rates this year. Moreover, geopolitical conflicts and the breakout of war in the Middle East also affected growth stocks.
Despite these negatives, we have selected five consumer discretionary stocks with a favorable Zacks Rank for investment. These are: Netflix Inc. NFLX, Ralph Lauren Corp. RL, Roku Inc. ROKU, Take-Two Interactive Software Inc. TTWO and Electronic Arts Inc. EA. Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
Netflix Inc.
Zacks Rank #2 Netflix is benefiting from its growing subscriber base, thanks to a robust localized and foreign-language content portfolio and healthy engagement levels with about two hours of viewing per member per day, indicating strong member retention.
NFLX surpassed the 325 million paid memberships milestone during the fourth quarter of 2025. The company made great progress growing advertising revenues in 2025. Ad revenues grew more than 2.5 times year over year in 2025 to more than $1.5 billion.
NFLX has set an ambitious target to double its revenues by 2030 and reach a $1 trillion market capitalization, supported by a diversified content strategy, including international programming, live events, and gaming initiatives.
In 2025, NFLX began testing new artificial intelligence (AI) tools to help advertisers create custom ads based on its intellectual property, with plans to build on this progress in 2026. The company also introduced automated workflows for ad concepts and used advanced AI models to streamline campaign planning, significantly speeding up these processes.
Netflix has an expected revenue and earnings growth rate of 13.7% and 25.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last seven days.
Ralph Lauren Corp.
Zacks Rank #2 Ralph Lauren has benefited from the execution of its “Next Great Chapter: Drive Plan” and robust financial performance. The plan focuses on brand elevation, consumer centricity and operational agility. RL’s digital transformation drives growth, with investments in personalization, mobile, omnichannel and fulfillment enhancing consumer engagement.
Retail and wholesale remain the key pillars of RL, with flagship stores, premium distribution and partnerships boosting comparable sales across North America, Europe and Asia. For fiscal 2026, RL expects revenues to increase in the high-single to low-double digits on a constant currency basis. While gross margin is likely to increase 40-80 bps, operating margin is expected to expand 100-140 bps in constant currency.
Ralph Lauren has an expected revenue and earnings growth rate of 6.5% and 11%, respectively, for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 2% over the last 60 days.
Roku Inc.
Zacks Rank #1 Roku’s growth is driven by platform revenues, supported by accelerating streaming adoption and strong monetization potential from its large logged-in household base. Stable platform gross margins highlight that growth is not sacrificing profitability, while expanding ARPU remains a key upside lever.
ROKU’s diversified advertising ecosystem, including upfronts to self-serve tools, positions the company to capture shifting budgets toward connected television. ROKU’s deep integrations with major demand-side platforms and a growing subscription aggregation model strengthen engagement and recurring revenues.
ROKU has gradually enhanced this experience with AI-driven content recommendations, improved search functionality and strategic content placement. Its content discovery improvements, including AI-generated viewing recommendations and subscription-aware content details pages, are reducing cancellation rates and improving conversion.
ROKU has an expected revenue and earnings growth rate of 16.3% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 65.3% over the last 60 days.
Take-Two Interactive Software Inc.
Zacks Rank #2 Take-Two Interactive Software benefits from steady net bookings growth driven by strong engagement across core franchises and an expanding mobile portfolio, supported by a well-balanced platform mix across mobile, console and PC.
A robust release pipeline, including GTA VI and WWE 2K26 and major upcoming titles, positions TTWO to establish a higher revenue baseline and profitability. TTWO’s operating leverage is emerging as revenues scale faster than costs, boosting operating cash flow and enhancing financial flexibility. TTWO’s proactive AI adoption also supports efficiency and long-term margin potential.
Take-Two Interactive Software has an expected revenue and earnings growth rate of 37.3% and more than 100%, respectively, for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 0.9% over the last 30 days.
Electronic Arts Inc.
Zacks Rank #2 Electronic Arts benefits from a strong portfolio led by its global football franchise, Battlefield and Apex Legends, which drive player engagement and monetization. This ecosystem supports EA’s recurring engagement through extra content purchases and live-service spending.
Live services remain a key revenue driver for EA, extending the lifecycle of major titles through subscriptions and in-game monetization. EA’s strong cash flow and liquidity further support shareholder returns and continued investment in core franchises and live-service expansion.
Electronic Arts has an expected revenue and earnings growth rate of 3.1% and 8.2%, respectively, for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 1.4% over the last 60 days.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Roku, Inc. (ROKU) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Electronic Arts Inc.

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