--- ticker: EA company: EA filing_type: 10-K year_current: 2026 year_prior: 2025 risks_added: 4 risks_removed: 4 risks_modified: 54 risks_unchanged: 78 source: SEC EDGAR url: https://riskdiff.com/ea/2026-vs-2025/ markdown_url: https://riskdiff.com/ea/2026-vs-2025/index.md generated: 2026-06-01 --- # EA: 10-K Risk Factor Changes 2026 vs 2025 > Source: U.S. Securities and Exchange Commission (EDGAR) > Generated: 2026-06-01 > All data extracted directly from official filings. No hallucinated content. ## Summary | Status | Count | |--------|-------| | New risks added | 4 | | Risks removed | 4 | | Risks modified | 54 | | Unchanged | 78 | --- ## New in Current Filing: If our proposed Merger does not close, or is delayed, we may experience financial and operational disruptions. In addition, our stock price may decline if the Merger is perceived as uncertain to close. On September 28, 2025, we entered into a Merger Agreement to be acquired by an investor Consortium comprised of the Public Investment Fund, private investment funds affiliated with Silver Lake Group, L.L.C., and private investment funds affiliated with Affinity Partners. The closing of the Merger is subject to the satisfaction or waiver of certain conditions, many of which are not within our full control. There are a limited number of regulatory reviews outstanding, and the parties are working diligently to complete these remaining reviews. However, we may be unable to obtain and satisfy, or experience delays in obtaining and satisfying, required regulatory approvals and other closing conditions. In addition, both we and the Consortium may terminate the Merger Agreement for reasons specified therein. The announcement and pendency of the Merger could adversely affect our business and stock price, including if the Merger does not close or is delayed, for reasons including the following: •Uncertainty about the effect of the Merger may impair our ability to attract, retain, and motivate key personnel, and could cause customers, suppliers, financial counterparties, and others to seek to change existing business relationships with us. •The Merger Agreement restricts us, without the consent of the Consortium, from making certain acquisitions and investments, from accessing the debt and capital markets, and from taking other specified actions until closing of the Merger or the termination of the Merger Agreement. These restrictions may prevent us from pursuing otherwise attractive business opportunities and taking other actions with respect to our business that we may consider advantageous. •We have incurred, and will continue to incur, significant costs, expenses, and fees for professional services and other transaction costs in connection with the Merger. Many of the fees and costs will be payable by us even if the Merger is not completed. In addition, we may be required to pay a termination fee of up to $1.0 billion to the Consortium and reimburse certain out-of-pocket expenses if the Merger Agreement is terminated for certain specified reasons. •The Merger may not occur on the expected timeline because of a delay in receiving required regulatory approvals or other reasons. Any delay or inability to close the Merger may cause the market price of our common stock to decline. --- ## New in Current Filing: Lawsuits have been or may be filed against us and the members of our Board of Directors arising out of the proposed Merger, which may delay or prevent the proposed Merger or otherwise negatively affect our business and operations. Putative stockholder complaints, including stockholder class action complaints, and other complaints have been or in the future may be filed against us, our Board of Directors and others in connection with the transactions contemplated by the Merger Agreement. Certain complaints asserted in connection with the transaction contemplated by the Merger Agreement have been mooted, however, the outcome of any additional litigation is uncertain, and we may not be successful in defending against any such future claims. Lawsuits that have been or may be filed against us, our Board of Directors or others could delay or prevent the Merger from being completed, divert the attention of our management and employees away from our day-to-day business, and otherwise adversely affect our business, results of operations, and financial condition. If the Merger is not consummated for any reason, litigation could be filed in connection with the failure to consummate the Merger. --- ## New in Current Filing: Proposed Merger On September 28, 2025, we entered into a Merger Agreement pursuant to and subject to the terms and conditions of which we will be acquired by the Consortium. For further details on this proposed transaction, see Note 1 of the Consolidated Financial Statements and "Part I - Item 1A. Risk Factors" contained elsewhere in this Form 10-K. --- ## New in Current Filing: Proposed Merger On September 28, 2025, we entered into a Merger Agreement pursuant to and subject to the terms and conditions of which we will be acquired by the Consortium. For further details on this proposed transaction, see Note 1 of the Consolidated Financial Statements and "Part I - Item 1A. Risk Factors" contained elsewhere in this Form 10-K. --- ## No Match in Current: Stock Repurchases *This section from the 2025 filing does not have a high-confidence textual match in 2026. It may have been removed, merged, or substantially reworded.* Shares of our common stock repurchased pursuant to our repurchase program, if any, are retired. The purchase price of such repurchased shares of common stock is recorded as a reduction to additional paid-in capital. If the balance in additional paid-in capital is exhausted, the excess is recorded as a reduction to retained earnings. --- ## No Match in Current: Restructuring *This section from the 2025 filing does not have a high-confidence textual match in 2026. It may have been removed, merged, or substantially reworded.* We generally recognize employee severance costs when payments are probable and amounts are estimable or when notification occurs, depending on the region in which an employee works. Costs related to non-lease contracts without future benefit or contract termination are recognized at the earlier of the contract termination or the cease-use dates. Other exit-related costs are recognized as incurred. 47 47 47 Table of Contents Table of Contents --- ## No Match in Current: Fiscal 2024 Restructuring *This section from the 2025 filing does not have a high-confidence textual match in 2026. It may have been removed, merged, or substantially reworded.* In fiscal year 2024, we announced a restructuring plan (the "2024 Restructuring Plan") focused on aligning our portfolio, investments, and resources in support of our strategic priorities and growth initiatives. This plan reflects actions driven by portfolio rationalization, including costs associated with licensor commitments, as well as reductions in real estate and headcount. The actions associated with this plan were substantially completed by March 31, 2025. Since the inception of the 2024 Restructuring Plan through March 31, 2025, we have incurred net charges of $123 million. We do not expect to incur any additional restructuring charges under this plan. Restructuring activities as of the fiscal year ended March 31, 2025 was as follows (in millions): Licensor Commitments (a)Workforce (a)Office Space ReductionsTotalCharges to operations$30 $29 $2 $61 Charges settled in cash(17)(5) - (22)Impairment and other charges(13) - (2)(15)Liability as of March 31, 2024$ - $24 $ - $24 Charges to operations5 - 57 62 Charges settled in cash - (24) - (24)Impairment and other charges(5) - (57)(62)Liability as of March 31, 2025$ - $ - $ - $ - (a) Charges are recorded within Restructuring in the Consolidated Statement of Operations. --- ## No Match in Current: Workforce (a) *This section from the 2025 filing does not have a high-confidence textual match in 2026. It may have been removed, merged, or substantially reworded.* Charges to operations (a) Charges are recorded within Restructuring in the Consolidated Statement of Operations. Of the $59 million in charges associated with office space reductions to date under the 2024 Restructuring Plan, $52 million is recorded within Restructuring during fiscal year 2025, as it is related to impairments of right-of-use assets and associated property, plant, and equipment for certain operating leases, and $7 million is recorded within General and administrative expenses in the Consolidated Statement of Operations. 55 55 55 Table of Contents Table of Contents --- ## Modified: Foreign Currency Translation **Key changes:** - Reworded sentence: "48 48 48 Table of Contents Table of Contents Foreign currency transaction gains and losses are a result of the effect of exchange rate changes on transactions denominated in currencies other than the functional currency." - Removed sentence: "46 46 46 Table of Contents Table of Contents" **Prior (2025):** Generally, the functional currency for our foreign operating subsidiaries is its local currency. Assets and liabilities of foreign operations are translated into U.S. dollars using month-end exchange rates, and revenue and expenses are translated into U.S. dollars using average exchange rates. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive income (loss) in stockholders' equity. Foreign currency transaction gains and losses are a result of the effect of exchange rate changes on transactions denominated in currencies other than the functional currency. Net gains (losses) on foreign currency transactions of $(29) million, $(10) million, and $31 million for the fiscal years ended March 31, 2025, 2024, and 2023, respectively, are included in interest and other income (expense), net, in our Consolidated Statements of Operations. These net gains (losses) on foreign currency transactions are partially offset by net gains (losses) on our foreign currency forward contracts of $45 million, $12 million, and $(29) million for the fiscal years ended March 31, 2025, 2024, and 2023, respectively. See Note 5 for additional information on our foreign currency forward contracts. 46 46 46 Table of Contents Table of Contents **Current (2026):** Generally, the functional currency for our foreign operating subsidiaries is its local currency. Assets and liabilities of foreign operations are translated into U.S. dollars using month-end exchange rates, and revenue and expenses are translated into U.S. dollars using average exchange rates. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive income (loss) in stockholders' equity. 48 48 48 Table of Contents Table of Contents Foreign currency transaction gains and losses are a result of the effect of exchange rate changes on transactions denominated in currencies other than the functional currency. Net gains (losses) on foreign currency transactions of $13 million, $(29) million, and $(10) million for the fiscal years ended March 31, 2026, 2025, and 2024, respectively, are included in interest and other income (expense), net, in our Consolidated Statements of Operations. These net gains (losses) on foreign currency transactions are partially or fully offset by net gains (losses) on our foreign currency forward contracts of $(10) million, $45 million, and $12 million for the fiscal years ended March 31, 2026, 2025, and 2024, respectively. See Note 5 for additional information on our foreign currency forward contracts. --- ## Modified: Trends in Our Business **Key changes:** - Reworded sentence: "Our net revenue attributable to live services and other was $5,383 million, $5,461 million, and $5,547 million for fiscal years 2026, 2025, and 2024, respectively, and we expect that live services net revenue will continue to be material to our business." - Reworded sentence: "21 21 21 Table of Contents Table of Contents Digital Delivery of Games." - Reworded sentence: "Our net revenue attributable to digital full game downloads was $1,708 million, $1,478 million, and $1,343 million during fiscal years 2026, 2025, and 2024, respectively; while our net revenue attributable to packaged goods sales was $440 million, $524 million, and $672 million in fiscal years 2026, 2025, and 2024, respectively." - Reworded sentence: "The following is a calculation of our total net bookings for the periods presented:Year Ended March 31,(In millions)20262025Net revenue$7,531 $7,463 Change in deferred net revenue (online-enabled games)495 (108)Net bookings$8,026 $7,355 Net bookings Net bookings were $8,026 million for fiscal year 2026 primarily driven by sales related to our global football, Battlefield, and American football franchises." **Prior (2025):** Live Services Business. We offer our players high-quality experiences designed to provide value to players and to extend and enhance gameplay. These live services include extra content, subscription offerings and other revenue generated in addition to the sale of our full games and free-to-play games. Our net revenue attributable to live services and other was $5,461 million, $5,547 million, and $5,489 million for fiscal years 2025, 2024, and 2023, respectively, and we expect that live services net revenue will continue to be material to our business. Within live services and other, net revenue attributable to extra content was $4,365 million, $4,463 million, and $4,277 million for fiscal years 2025, 2024, and 2023, respectively. Growth in live services net revenue, including extra content may not be linear due to the competitive landscape, consumer buying patterns, and other factors. Our most popular live services are the extra content in the Ultimate Team mode associated with our sports franchises. Ultimate Team allows players to collect current and former players in order to build and compete as a personalized team. Live services net revenue generated from extra content purchased within Ultimate Team, a substantial portion of which was derived from FC Ultimate Team, is material to our business. Digital Delivery of Games. In our industry, players increasingly purchase games digitally as opposed to purchasing physical discs. While this trend, as applied to our business, may not be linear due to a mix of products during a fiscal year, consumer buying patterns and other factors, over time we expect players to continue to purchase a higher proportion of our games digitally. As a result, we expect net revenue attributable to digital full game downloads to increase over time and net revenue attributable to sales of packaged goods to decrease. Our net revenue attributable to digital full game downloads was $1,478 million, $1,343 million, and $1,262 million during fiscal years 2025, 2024, and 2023, respectively; while our net revenue attributable to packaged goods sales was $524 million, 20 20 20 Table of Contents Table of Contents $672 million, and $675 million in fiscal years 2025, 2024, and 2023, respectively. In addition, as measured based on total units sold on Microsoft's Xbox One and Xbox Series X and Sony's PlayStation 4 and 5 rather than by net revenue, we estimate that 78 percent, 73 percent, and 68 percent of our total units sold during fiscal years 2025, 2024, and 2023, were sold digitally. Digital full game units are based on sales information provided by Microsoft and Sony; packaged goods units sold through are estimated by obtaining data from significant retail and distribution partners in North America, Europe and Asia, and applying internal sales estimates with respect to retail partners from which we do not obtain data. We believe that these percentages are reasonable estimates of the proportion of our games that are digitally downloaded in relation to our total number of units sold for the applicable period of measurement. Increases in consumer adoption of digital purchase of games combined with increases in our live services revenue generally results in expansion of our gross margin, as costs associated with selling a game digitally are generally less than selling the same game through traditional retail and distribution channels. Increased Competition. Competition in our business is intense. Our competitors range from established interactive entertainment companies to emerging start-ups. In addition, we compete with large, diversified companies that have strengthened their interactive entertainment capabilities. Our competitors have access to certain resources such as larger budgets, tools, technologies, or IP portfolios that can lead to greater consumer success and shift player time and engagement away from our products and services. In addition, our leading position within the interactive entertainment industry makes us a prime target for recruiting our executives, as well as key creative and technical talent, resulting in retention challenges and increased cost to retain and incentivize our key people. Concentration of Sales Among the Most Popular Games. In our industry, we see a large portion of games sales concentrated on the most popular titles. Similarly, a significant portion of our revenue has been derived from games based on a few popular titles, such as EA SPORTS FC, EA SPORTS College Football, EA SPORTS Madden NFL, Apex Legends, Battlefield, and The Sims. In particular, we have historically derived a significant portion of our net revenue from our global football franchise, the annualized version of which is consistently one of the best-selling games in the marketplace. Net Bookings. In order to improve transparency into our business, we disclose an operating performance metric, net bookings. Net bookings is defined as the net amount of products and services sold digitally or sold-in physically in the period. Net bookings is calculated by adding total net revenue to the change in deferred net revenue for online-enabled games. The following is a calculation of our total net bookings for the periods presented:Year Ended March 31,(In millions)20252024Net revenue$7,463 $7,562 Change in deferred net revenue (online-enabled games)(108)(132)Net bookings$7,355 $7,430 Net bookings Net bookings were $7,355 million for fiscal year 2025 primarily driven by sales related to our global football, American football, and The Sims franchises. Net bookings decreased $75 million or 1 percent as compared to fiscal year 2024 primarily due to the prior year release of Star Wars Jedi: Survivor, a year-over-year decrease in sales of extra content for Apex Legends, and a year-over-year decrease in sales related to our global football franchise, partially offset by increased sales from our American football franchises, driven by EA SPORTS College Football 25, and the release of Split Fiction. Live services and other net bookings were $5,338 million for fiscal year 2025, and decreased $87 million or 2 percent as compared to fiscal year 2024. The decrease in live services and other net bookings was due primarily to decreased sales of extra content from Apex Legends and from Ultimate Team within our global football franchise, partially offset by increased sales of extra content from Ultimate Team within our American football franchises, driven by EA SPORTS College Football 25, and global football mobile extra content sales. Full game net bookings were $2,017 million for fiscal year 2025, and increased $12 million or less than 1 percent as compared to fiscal year 2024 primarily due to a year-over-year increase in sales of our American football franchises, driven by EA SPORTS College Football 25, and the releases of Split Fiction and Dragon Age: The Veilguard, partially offset by the prior year release of Star Wars Jedi: Survivor, legacy FIFA titles within our global football franchise, and softness in EA SPORTS FC 25 full game sales. 21 21 21 Table of Contents Table of Contents **Current (2026):** Live Services Business. We offer our players high-quality experiences designed to provide value to players and to extend and enhance gameplay. These live services include extra content, subscription offerings and other revenue generated in addition to the sale of our full games and free-to-play games. Our net revenue attributable to live services and other was $5,383 million, $5,461 million, and $5,547 million for fiscal years 2026, 2025, and 2024, respectively, and we expect that live services net revenue will continue to be material to our business. Within live services and other, net revenue attributable to extra content was $4,091 million, $4,365 million, and $4,463 million for fiscal years 2026, 2025, and 2024, respectively. Growth in live services net revenue, including extra content may not be linear due to the competitive landscape, consumer buying patterns, and other factors. Our most popular live services are the extra content in the Ultimate Team mode associated with our sports franchises. Ultimate Team allows players to collect current and former players in order to build and compete as a personalized team. Live services net revenue generated from extra content purchased within Ultimate Team, a substantial portion of which was derived from FC Ultimate Team, is material to our business. 21 21 21 Table of Contents Table of Contents Digital Delivery of Games. In our industry, players increasingly purchase games digitally as opposed to purchasing physical discs. While this trend, as applied to our business, may not be linear due to a mix of products during a fiscal year, consumer buying patterns and other factors, over time we expect players to continue to purchase a higher proportion of our games digitally. As a result, we expect net revenue attributable to digital full game downloads to increase over time and net revenue attributable to sales of packaged goods to decrease. Our net revenue attributable to digital full game downloads was $1,708 million, $1,478 million, and $1,343 million during fiscal years 2026, 2025, and 2024, respectively; while our net revenue attributable to packaged goods sales was $440 million, $524 million, and $672 million in fiscal years 2026, 2025, and 2024, respectively. In addition, as measured based on total units sold on Microsoft's Xbox One and Xbox Series X and Sony's PlayStation 4 and 5 rather than by net revenue, we estimate that 81 percent, 78 percent, and 73 percent of our total units sold during fiscal years 2026, 2025, and 2024, were sold digitally. Digital full game units are based on sales information provided by Microsoft and Sony; packaged goods units sold through are estimated by obtaining data from significant retail and distribution partners in North America, Europe and Asia, and applying internal sales estimates with respect to retail partners from which we do not obtain data. We believe that these percentages are reasonable estimates of the proportion of our games that are digitally downloaded in relation to our total number of units sold for the applicable period of measurement. Increases in consumer adoption of digital purchase of games combined with increases in our live services revenue generally results in expansion of our gross margin, as costs associated with selling a game digitally are generally less than selling the same game through traditional retail and distribution channels. Increased Competition. Competition in our business is intense. Our competitors range from established interactive entertainment companies to emerging start-ups. In addition, we compete with large, diversified companies that have strengthened their interactive entertainment capabilities. Our competitors have access to certain resources such as larger budgets, tools, technologies, or IP portfolios that can lead to greater consumer success and shift player time and engagement away from our products and services. In addition, our leading position within the interactive entertainment industry makes us a prime target for recruiting our executives, as well as key creative and technical talent, resulting in retention challenges and increased cost to retain and incentivize our key people. Concentration of Sales Among the Most Popular Games. In our industry, we see a large portion of games sales concentrated on the most popular titles. Similarly, a significant portion of our revenue has been derived from games based on a few popular titles, such as EA SPORTS FC, EA SPORTS College Football, EA SPORTS Madden NFL, Apex Legends, Battlefield, and The Sims. In particular, we have historically derived a significant portion of our net revenue from our global football franchise, the annualized version of which is consistently one of the best-selling games in the marketplace. Net Bookings. In order to improve transparency into our business, we disclose an operating performance metric, net bookings. Net bookings is defined as the net amount of products and services sold digitally or sold-in physically in the period. Net bookings is calculated by adding total net revenue to the change in deferred net revenue for online-enabled games. The following is a calculation of our total net bookings for the periods presented:Year Ended March 31,(In millions)20262025Net revenue$7,531 $7,463 Change in deferred net revenue (online-enabled games)495 (108)Net bookings$8,026 $7,355 Net bookings Net bookings were $8,026 million for fiscal year 2026 primarily driven by sales related to our global football, Battlefield, and American football franchises. Net bookings increased $671 million or 9 percent as compared to fiscal year 2025 primarily due to the release of Battlefield 6 and a year-over-year increase in sales from our global football franchise, partially offset by a year-over-year decrease in sales from EA SPORTS College Football, the prior year release of Dragon Age: The Veilguard, and The Sims franchise. Live services and other net bookings were $5,630 million for fiscal year 2026, and increased $292 million or 5 percent as compared to fiscal year 2025. The increase in live services and other net bookings was primarily due to increased sales of extra content within our global football franchise and from Battlefield 6, partially offset by decreased sales of extra content from Ultimate Team within EA SPORTS College Football, and The Sims 4. Full game net bookings were $2,396 million for fiscal year 2026, and increased $379 million or 19 percent as compared to fiscal year 2025 primarily due to the release of Battlefield 6, partially offset by a year-over-year decline in EA SPORTS College Football, and the prior year release of Dragon Age: The Veilguard. 22 22 22 Table of Contents Table of Contents --- ## Modified: Restricted Stock Units **Key changes:** - Reworded sentence: "70 70 70 Table of Contents Table of Contents The following table summarizes our restricted stock units activity, excluding performance-based and market-based restricted stock unit activity which is discussed below, for the fiscal year ended March 31, 2026: RestrictedStock Units(in thousands)Weighted-Average GrantDate Fair ValuesOutstanding as of March 31, 20257,549 $133.90 Granted3,864 154.23 Vested(4,339)133.74 Forfeited or cancelled(633)139.84 Outstanding as of March 31, 20266,441 $145.62 Outstanding as of March 31, 2025 Outstanding as of March 31, 2026 The grant date fair value of restricted stock units is based on the quoted market price of our common stock on the date of grant." **Prior (2025):** We grant restricted stock units under our 2019 Equity Plan to employees worldwide. Restricted stock units are unfunded, unsecured rights to receive common stock upon the satisfaction of certain vesting criteria. Upon vesting, a number of shares of common stock equivalent to the number of restricted stock units are typically issued net of required tax withholding requirements, if any. Restricted stock units are subject to forfeiture and transfer restrictions. Vesting for restricted stock units is based on the holders' continued employment with us through each applicable vest date. If the vesting conditions are not met, unvested restricted stock units will be forfeited. Our restricted stock units generally vest over 35 months to four years. 68 68 68 Table of Contents Table of Contents The following table summarizes our restricted stock units activity, excluding performance-based and market-based restricted stock unit activity which is discussed below, for the fiscal year ended March 31, 2025: RestrictedStock Units(in thousands)Weighted-Average GrantDate Fair ValuesOutstanding as of March 31, 20247,480 $128.31 Granted4,760 138.59 Vested(4,228)129.53 Forfeited or cancelled(463)131.82 Outstanding as of March 31, 20257,549 $133.90 Outstanding as of March 31, 2024 Outstanding as of March 31, 2025 The grant date fair value of restricted stock units is based on the quoted market price of our common stock on the date of grant. The weighted-average grant date fair values of restricted stock units granted during fiscal years 2025, 2024, and 2023 were $138.59, $129.30, and $126.41, respectively. The fair values of restricted stock units that vested during fiscal years 2025, 2024, and 2023 were $633 million, $519 million, and $460 million, respectively. **Current (2026):** We grant restricted stock units under our 2019 Equity Plan to employees worldwide. Restricted stock units are unfunded, unsecured rights to receive common stock upon the satisfaction of certain vesting criteria. Upon vesting, a number of shares of common stock equivalent to the number of restricted stock units are typically issued net of required tax withholding requirements, if any. Restricted stock units are subject to forfeiture and transfer restrictions. Vesting for restricted stock units is based on the holders' continued employment with us through each applicable vest date. If the vesting conditions are not met, unvested restricted stock units will be forfeited. Our restricted stock units generally vest over 35 months to four years. 70 70 70 Table of Contents Table of Contents The following table summarizes our restricted stock units activity, excluding performance-based and market-based restricted stock unit activity which is discussed below, for the fiscal year ended March 31, 2026: RestrictedStock Units(in thousands)Weighted-Average GrantDate Fair ValuesOutstanding as of March 31, 20257,549 $133.90 Granted3,864 154.23 Vested(4,339)133.74 Forfeited or cancelled(633)139.84 Outstanding as of March 31, 20266,441 $145.62 Outstanding as of March 31, 2025 Outstanding as of March 31, 2026 The grant date fair value of restricted stock units is based on the quoted market price of our common stock on the date of grant. The weighted-average grant date fair values of restricted stock units granted during fiscal years 2026, 2025, and 2024 were $154.23, $138.59, and $129.30, respectively. The fair values of restricted stock units that vested during fiscal years 2026, 2025, and 2024 were $738 million, $633 million, and $519 million, respectively. --- ## Modified: CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY **Key changes:** - Reworded sentence: "(In millions, except share data in thousands) Common StockAdditional Paid-inCapitalRetainedEarningsAccumulatedOtherComprehensiveIncome (Loss)TotalStockholders'EquitySharesAmountBalances as of March 31, 2023272,914 $3 $ - $7,357 $(67)$7,293 Total comprehensive income (loss) - - - 1,273 (5)1,268 Stock-based compensation - - 584 - - 584 Issuance of common stock3,496 - (119) - - (119)Common stock repurchases and excise tax(9,995) - (465)(843) - (1,308)Cash dividends declared ($0.76 per common share) - - - (205) - (205)Balances as of March 31, 2024266,415 $3 $ - $7,582 $(72)$7,513 Total comprehensive income (loss) - - - 1,121 (15)1,106 Stock-based compensation - - 642 - - 642 Issuance of common stock3,532 - (156) - - (156)Common stock repurchases and excise tax(17,632) - (486)(2,034) - (2,520)Cash dividends declared ($0.76 per common share) - - - (199) - (199)Balances as of March 31, 2025252,315 $3 $ - $6,470 $(87)$6,386 Total comprehensive income (loss) - - - 887 (15)872 Stock-based compensation - - 656 - - 656 Issuance of common stock3,671 - (208) - - (208)Common stock repurchases and excise tax(5,276) - (192)(559) - (751)Cash dividends declared ($0.76 per common share) - - - (191) - (191)Balances as of March 31, 2026250,710 $3 $256 $6,607 $(102)$6,764 Cash dividends declared ($0.76 per common share) Cash dividends declared ($0.76 per common share) Cash dividends declared ($0.76 per common share) See accompanying Notes to Consolidated Financial Statements." **Prior (2025):** (In millions, except share data in thousands) Common StockAdditional Paid-inCapitalRetainedEarningsAccumulatedOtherComprehensiveIncome (Loss)TotalStockholders'EquitySharesAmountBalances as of March 31, 2022280,051 $3 $ - $7,607 $15 $7,625 Total comprehensive income (loss) - - - 802 (82)720 Stock-based compensation - - 548 - - 548 Issuance of common stock3,311 - (95) - - (95)Common stock repurchases(10,448) - (453)(842) - (1,295)Cash dividends declared ($0.76 per common share) - - - (210) - (210)Balances as of March 31, 2023272,914 $3 $ - $7,357 $(67)$7,293 Total comprehensive income (loss) - - - 1,273 (5)1,268 Stock-based compensation - - 584 - - 584 Issuance of common stock3,496 - (119) - - (119)Common stock repurchases and excise tax(9,995) - (465)(843) - (1,308)Cash dividends declared ($0.76 per common share) - - - (205) - (205)Balances as of March 31, 2024266,415 $3 $ - $7,582 $(72)$7,513 Total comprehensive income (loss) - - - 1,121 (15)1,106 Stock-based compensation - - 642 - - 642 Issuance of common stock3,532 - (156) - - (156)Common stock repurchases and excise tax(17,632) - (486)(2,034) - (2,520)Cash dividends declared ($0.76 per common share) - - - (199) - (199)Balances as of March 31, 2025252,315 $3 $ - $6,470 $(87)$6,386 Cash dividends declared ($0.76 per common share) Cash dividends declared ($0.76 per common share) Cash dividends declared ($0.76 per common share) See accompanying Notes to Consolidated Financial Statements. 37 37 37 Table of Contents Table of Contents **Current (2026):** (In millions, except share data in thousands) Common StockAdditional Paid-inCapitalRetainedEarningsAccumulatedOtherComprehensiveIncome (Loss)TotalStockholders'EquitySharesAmountBalances as of March 31, 2023272,914 $3 $ - $7,357 $(67)$7,293 Total comprehensive income (loss) - - - 1,273 (5)1,268 Stock-based compensation - - 584 - - 584 Issuance of common stock3,496 - (119) - - (119)Common stock repurchases and excise tax(9,995) - (465)(843) - (1,308)Cash dividends declared ($0.76 per common share) - - - (205) - (205)Balances as of March 31, 2024266,415 $3 $ - $7,582 $(72)$7,513 Total comprehensive income (loss) - - - 1,121 (15)1,106 Stock-based compensation - - 642 - - 642 Issuance of common stock3,532 - (156) - - (156)Common stock repurchases and excise tax(17,632) - (486)(2,034) - (2,520)Cash dividends declared ($0.76 per common share) - - - (199) - (199)Balances as of March 31, 2025252,315 $3 $ - $6,470 $(87)$6,386 Total comprehensive income (loss) - - - 887 (15)872 Stock-based compensation - - 656 - - 656 Issuance of common stock3,671 - (208) - - (208)Common stock repurchases and excise tax(5,276) - (192)(559) - (751)Cash dividends declared ($0.76 per common share) - - - (191) - (191)Balances as of March 31, 2026250,710 $3 $256 $6,607 $(102)$6,764 Cash dividends declared ($0.76 per common share) Cash dividends declared ($0.76 per common share) Cash dividends declared ($0.76 per common share) See accompanying Notes to Consolidated Financial Statements. 38 38 38 Table of Contents Table of Contents --- ## Modified: General and Administrative **Key changes:** - Reworded sentence: "28 28 28 Table of Contents Table of Contents General and administrative expenses consist of personnel and related expenses of executive and administrative staff, corporate functions such as finance, legal, human resources, and information technology ("IT"), related overhead costs, fees for professional services, and allowances for doubtful accounts." **Prior (2025):** 27 27 27 Table of Contents Table of Contents General and administrative expenses consist of personnel and related expenses of executive and administrative staff, corporate functions such as finance, legal, human resources, and information technology ("IT"), related overhead costs, fees for professional services, and allowances for doubtful accounts. General and administrative expenses for fiscal years 2025 and 2024 were as follows (in millions): **Current (2026):** 28 28 28 Table of Contents Table of Contents General and administrative expenses consist of personnel and related expenses of executive and administrative staff, corporate functions such as finance, legal, human resources, and information technology ("IT"), related overhead costs, fees for professional services, and allowances for doubtful accounts. General and administrative expenses for fiscal years 2026 and 2025 were as follows (in millions): --- ## Modified: Cash Flow Hedging Activities **Key changes:** - Reworded sentence: "Gains or losses resulting from changes in the fair value of these hedges are initially reported, net of tax, as a component of accumulated other comprehensive income (loss) in stockholders' equity." - Reworded sentence: "In the event that the underlying forecasted transactions do not occur, or it becomes remote that they will occur within the defined hedge period, the gains or losses on the related cash flow hedges are reclassified from accumulated other comprehensive income (loss) to interest and other income (expense), net, in our Consolidated Statements of Operations." **Prior (2025):** Certain of our forward contracts are designated and qualify as cash flow hedges. To qualify for hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedges and must be highly effective in offsetting changes to future cash flows on hedged transactions. The derivative assets or liabilities associated with our hedging activities are recorded at fair value in other current assets/other assets, or accounts payable, accrued, and other current liabilities/other liabilities, respectively, on our Consolidated Balance Sheets. The gains or losses resulting from changes in the fair value of these hedges are initially reported, net of tax, as a component of accumulated other comprehensive income (loss) in stockholders' equity. The gains or losses resulting from changes in the fair value of these hedges are subsequently reclassified into net revenue or research and development expenses, as appropriate, in the period when the forecasted transaction is recognized in our Consolidated Statements of Operations. In the event that the underlying forecasted transactions do not occur, or it becomes remote that they will occur within the defined hedge period, the gains or losses on the related cash flow hedges are reclassified from accumulated other comprehensive income (loss) to net revenue or research and development expenses, in our Consolidated Statements of Operations. Total gross notional amounts and fair values for currency derivatives with cash flow hedge accounting designation are as follows (in millions):As of March 31, 2025As of March 31, 2024Notional AmountFair ValueNotional AmountFair ValueAssetLiabilityAssetLiabilityForward contracts to purchase$463 $4 $7 $413 $1 $4 Forward contracts to sell$1,970 $20 $16 $2,329 $24 $11 **Current (2026):** Certain of our forward contracts are designated and qualify as cash flow hedges. To qualify for hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedges and must be highly effective in offsetting changes to future cash flows on hedged transactions. Gains or losses resulting from changes in the fair value of these hedges are initially reported, net of tax, as a component of accumulated other comprehensive income (loss) in stockholders' equity. The gains or losses resulting from changes in the fair value of these hedges are subsequently reclassified into net revenue or research and development expenses, as appropriate, in the period when the forecasted transaction is recognized in our Consolidated Statements of Operations. In the event that the underlying forecasted transactions do not occur, or it becomes remote that they will occur within the defined hedge period, the gains or losses on the related cash flow hedges are reclassified from accumulated other comprehensive income (loss) to interest and other income (expense), net, in our Consolidated Statements of Operations. Total gross notional amounts and fair values for currency derivatives with cash flow hedge accounting designation are as follows (in millions):As of March 31, 2026As of March 31, 2025Notional AmountFair ValueNotional AmountFair ValueAssetLiabilityAssetLiabilityForward contracts to purchase$428 $4 $4 $463 $4 $7 Forward contracts to sell$1,576 $28 $15 $1,970 $20 $16 --- ## Modified: Marketing and Sales **Key changes:** - Reworded sentence: "Marketing and sales expenses consist of advertising, marketing and promotional expenses, personnel-related costs, and related overhead costs." **Prior (2025):** Marketing and sales expenses consist of advertising, marketing and promotional expenses, personnel-related costs, and related overhead costs, net of qualified advertising cost reimbursements from third parties. Marketing and sales expenses for fiscal years 2025 and 2024 were as follows (in millions): **Current (2026):** Marketing and sales expenses consist of advertising, marketing and promotional expenses, personnel-related costs, and related overhead costs. Marketing and sales expenses for fiscal years 2026 and 2025 were as follows (in millions): --- ## Modified: (10) INCOME TAXES **Key changes:** - Reworded sentence: "On July 4, 2025, the United States enacted the One Big Beautiful Bill Act ("OBBB") which extended or modified certain corporate tax provisions under the 2017 Tax Cuts and Jobs Act ("TCJA")." - Removed sentence: "tax on our 59 59 59 Table of Contents Table of Contents non-U.S." - Reworded sentence: "61 61 61 Table of Contents Table of Contents Income taxes paid, net of refunds received, for the fiscal year ended March 31, 2026 were as follows (in millions): Year Ended March 31, 2026U.S." - Reworded sentence: "As of March 31, 2026, approximately $796 million of our cash and cash equivalents were domiciled in foreign tax jurisdictions." - Reworded sentence: "The components of net deferred tax assets, as of March 31, 2026 and 2025 consisted of (in millions): As of March 31, 20262025Deferred tax assets:Accruals, reserves and other expenses$239 $227 Tax credit carryforwards250 235 Research and development capitalization537 523 Stock-based compensation42 43 Amortization and depreciation15 - Net operating loss and capital loss carryforwards544 450 Swiss intra-entity tax asset1,355 1,485 Total2,982 2,963 Valuation allowance(544)(534)Deferred tax assets, net of valuation allowance2,438 2,429 Deferred tax liabilities:Amortization and depreciation - (7)Other(6)(3)Total(6)(10)Deferred tax assets, net of valuation allowance and deferred tax liabilities$2,432 $2,419 As of March 31, 2026, we have net operating loss carry forwards of approximately $3.6 billion of which approximately $40 million is attributable to various acquired companies." **Prior (2025):** The components of our income before provision for income taxes for the fiscal years ended March 31, 2025, 2024, and 2023 are as follows (in millions): Year Ended March 31, 202520242023Domestic$447 $437 $315 Foreign1,158 1,152 1,011 Income before provision for income taxes$1,605 $1,589 $1,326 Provision for income taxes for the fiscal years ended March 31, 2025, 2024, and 2023 consisted of (in millions): CurrentDeferredTotalYear Ended March 31, 2025Federal$369 $(136)$233 State53 (28)25 Foreign102 124 226 $524 $(40)$484 Year Ended March 31, 2024Federal$138 $85 $223 State20 9 29 Foreign76 (12)64 $234 $82 $316 Year Ended March 31, 2023Federal$570 $(339)$231 State92 (76)16 Foreign75 202 277 $737 $(213)$524 Year Ended March 31, 2025 Year Ended March 31, 2024 Year Ended March 31, 2023 The differences between the statutory tax rate and our effective tax rate, expressed as a percentage of income before provision for income taxes, for the fiscal years ended March 31, 2025, 2024, and 2023 were as follows: Year Ended March 31, 202520242023Statutory federal tax expense rate21.0 %21.0 %21.0 %State taxes, net of federal benefit0.9 %1.1 %1.1 %Differences between statutory rate and foreign effective tax rate3.8 %2.9 %7.6 %Research and development credits(2.3)%(2.4)%(3.0)%Swiss valuation allowance3.2 %(0.3)%8.9 %Effect of change in enacted tax rate - %(5.8)% - %Non-deductible stock-based compensation3.2 %2.8 %3.2 %Other0.4 %0.6 %0.7 %Effective tax rate30.2 %19.9 %39.5 % During the fiscal year ended March 31, 2025, we recognized a $51 million tax charge to increase the valuation allowance on Swiss deferred tax assets as a result of various factors including our business operations, geographical income mix, and an increase in the Swiss interest rates. Excluding the effect of the change in valuation allowance, the effective tax rate for fiscal year 2025 would have been 27.0 percent. During the fiscal year ended March 31, 2024, we recognized a $92 million tax benefit to remeasure our Swiss deferred tax assets as a result of an increase in the Swiss statutory tax rate. In addition, we recognized a lower period cost for U.S. tax on our 59 59 59 Table of Contents Table of Contents non-U.S. earnings, including a cumulative one-time benefit, due to R&D capitalization guidance issued by the U.S. Treasury during the fiscal year. Excluding the effects of these items, the effective tax rate for fiscal year 2024 would have been 26.7 percent. During the fiscal year ended March 31, 2023, we recognized a $118 million tax charge to increase the valuation allowance on Swiss deferred tax assets, primarily as a result of an increase in Swiss interest rates. Our foreign subsidiaries are generally subject to U.S. tax, and to the extent earnings from these subsidiaries can be repatriated without a material tax cost, such earnings will not be indefinitely reinvested. As of March 31, 2025, approximately $1.1 billion of our cash and cash equivalents were domiciled in foreign tax jurisdictions. All of our foreign cash is available for repatriation without a material tax cost. The components of net deferred tax assets, as of March 31, 2025 and 2024 consisted of (in millions): As of March 31, 20252024Deferred tax assets:Accruals, reserves and other expenses$227 $200 Tax credit carryforwards235 222 Research and development capitalization523 375 Stock-based compensation43 41 Net operating loss and capital loss carryforwards450 403 Swiss intra-entity tax asset1,485 1,618 Total2,963 2,859 Valuation allowance(534)(464)Deferred tax assets, net of valuation allowance2,429 2,395 Deferred tax liabilities:Amortization and depreciation(7)(10)Other(3)(6)Total(10)(16)Deferred tax assets, net of valuation allowance and deferred tax liabilities$2,419 $2,379 As of March 31, 2025, we have net operating loss carry forwards of approximately $3.0 billion of which approximately $40 million is attributable to various acquired companies. The net operating loss carry forwards include $2.9 billion related to Switzerland and $31 million related to California. Substantially all of these carryforwards, if not fully realized, will begin to expire in fiscal year 2027. Switzerland has a seven-year carryforward period and does not permit the carry back of losses. We also have U.S. federal credit carryforwards of $6 million and California credit carryforwards of $219 million. The California tax credit carryforwards can be carried forward indefinitely. As of March 31, 2025, we maintained a total valuation allowance of $534 million related to certain U.S. state deferred tax assets, Swiss deferred tax assets, and foreign capital loss carryovers, due to uncertainty about the future realization of these assets. 60 60 60 Table of Contents Table of Contents The total unrecognized tax benefits as of March 31, 2025, 2024, and 2023 were $688 million, $804 million and $867 million, respectively. A reconciliation of the beginning and ending balance of unrecognized tax benefits is summarized as follows (in millions): Balance as of March 31, 2022$636 Increases in unrecognized tax benefits related to current year tax positions245 Decreases in unrecognized tax benefits related to settlements with taxing authorities(2)Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations(6)Changes in unrecognized tax benefits due to foreign currency translation(6)Balance as of March 31, 2023867 Increases in unrecognized tax benefits related to prior year tax positions14 Decreases in unrecognized tax benefits related to prior year tax positions(173)Increases in unrecognized tax benefits related to current year tax positions97 Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations(2)Changes in unrecognized tax benefits due to foreign currency translation1 Balance as of March 31, 2024804 Increases in unrecognized tax benefits related to prior year tax positions18 Decreases in unrecognized tax benefits related to prior year tax positions(214)Increases in unrecognized tax benefits related to current year tax positions94 Decreases in unrecognized tax benefits related to settlements with taxing authorities(12)Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations(2)Balance as of March 31, 2025$688 As of March 31, 2025, approximately $482 million of the unrecognized tax benefits would affect our effective tax rate, a portion of which would be impacted by a valuation allowance. Interest and penalties related to estimated obligations for tax positions taken in our tax returns are recognized in income tax expense in our Consolidated Statements of Operations. The combined amount of accrued interest and penalties related to tax positions taken on our tax returns and included in non-current other liabilities was approximately $127 million as of March 31, 2025 and $91 million as of March 31, 2024. We file income tax returns in the United States, including various state and local jurisdictions. As of March 31, 2025, our subsidiaries file tax returns in various foreign jurisdictions, including Canada, Germany, South Korea, Switzerland, and the United Kingdom. As of the period ended March 31, 2025, we remain subject to income tax examination in these jurisdictions, including the United States for fiscal years after 2017, Canada for fiscal years after 2014, Germany for fiscal years after 2016, South Korea for fiscal years after 2018, Switzerland for fiscal years after 2014, and the United Kingdom for fiscal years after 2021. We are currently under income tax examination in various jurisdictions, including the United States for fiscal years 2018 through 2021. The timing and potential resolution of income tax examinations is highly uncertain. While we continue to measure our uncertain tax positions, the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued. It is also reasonably possible that material reduction of unrecognized tax benefits may occur within the next 12 months, a portion of which would impact our effective tax rate. The actual amount could vary significantly depending on the ultimate timing and nature of any settlements and tax interpretations. 61 61 61 Table of Contents Table of Contents **Current (2026):** On July 4, 2025, the United States enacted the One Big Beautiful Bill Act ("OBBB") which extended or modified certain corporate tax provisions under the 2017 Tax Cuts and Jobs Act ("TCJA"). The OBBB modified certain business deductions, including allowing for immediate expensing of U.S. research & development expenditures, effective in our current fiscal year. The OBBB also modified various international tax provisions which were set to change or expire after 2025 under the TCJA. Such modifications, including U.S. taxation of profits derived from foreign operations and associated foreign tax credit limitations, are effective in our fiscal year 2027. The changes resulting from the tax provisions of OBBB are not expected to have a material impact on our results of operations. The European Union and other countries, including Switzerland, have enacted, or have committed to enact global minimum taxes, commonly referred to as Pillar II, as proposed by the Organization for Economic Cooperation and Development ("OECD"), effective with our fiscal year 2025. Pillar II in the relevant countries where we operate did not have a material impact on our tax provision. On January 5, 2026, the OECD published details of a side-by-side package for the Pillar II global minimum tax rules. The package includes an extension of the transitional safe harbor and new permanent safe harbor rules, including the exemption of U.S.-parented multinationals from certain Pillar II global minimum taxes effective in our fiscal year 2027. We do not expect the package to have material impact on our financial results and will continue to monitor legislative updates in our operating jurisdictions. The components of our income before provision for income taxes for the fiscal years ended March 31, 2026, 2025, and 2024 are as follows (in millions): Year Ended March 31, 202620252024Domestic$265 $447 $437 Foreign915 1,158 1,152 Income before provision for income taxes$1,180 $1,605 $1,589 Provision for income taxes for the fiscal years ended March 31, 2026, 2025, and 2024 consisted of (in millions): CurrentDeferredTotalYear Ended March 31, 2026Federal$137 $(29)$108 State20 (7)13 Foreign146 26 172 $303 $(10)$293 Year Ended March 31, 2025Federal$369 $(136)$233 State53 (28)25 Foreign102 124 226 $524 $(40)$484 Year Ended March 31, 2024Federal$138 $85 $223 State20 9 29 Foreign76 (12)64 $234 $82 $316 Year Ended March 31, 2026 Year Ended March 31, 2025 Year Ended March 31, 2024 The differences between the statutory tax rate and our effective tax rate for the fiscal year ended March 31, 2026 after the adoption of ASU 2023-09 are as follows: 60 60 60 Table of Contents Table of Contents Year Ended March 31, 2026 AmountPercentStatutory federal tax expense rate$248 21.0 %State and local income taxes, net of federal benefit 3 0.3 %Foreign tax effectsSingaporeNontaxable interest income(76)(6.6)%Statutory income tax rate differential(18)(1.5)%SwitzerlandStatutory income tax rate differential(19)(1.6)%Other foreign jurisdictions36 3.1 %Effect of cross-border tax laws (a)73 6.2 %Research and development tax credits(37)(3.1)%Changes in unrecognized tax benefits (b)77 6.5 %Other adjustments (c)6 0.5 %Effective tax rate$293 24.8 %(a) Effect of cross-border tax laws are presented on a net basis, primarily related to global intangible low-taxed income.(b) Changes in unrecognized tax benefits are presented on an aggregated basis for all jurisdictions.(c) Includes change in valuation allowances, and nontaxable or nondeductible items. Effect of cross-border tax laws (a) Changes in unrecognized tax benefits (b) Other adjustments (c) (a) Effect of cross-border tax laws are presented on a net basis, primarily related to global intangible low-taxed income. (b) Changes in unrecognized tax benefits are presented on an aggregated basis for all jurisdictions. (c) Includes change in valuation allowances, and nontaxable or nondeductible items. The differences between the statutory tax rate and our effective tax rate, expressed as a percentage of income before provision for income taxes, for the fiscal years ended March 31, 2025, and 2024 prior to the adoption of ASU 2023-09 were as follows: Year Ended March 31, 20252024Statutory federal tax expense rate21.0 %21.0 %State taxes, net of federal benefit0.9 %1.1 %Differences between statutory rate and foreign effective tax rate3.8 %2.9 %Research and development credits(2.3)%(2.4)%Swiss valuation allowance3.2 %(0.3)%Effect of change in enacted tax rate - %(5.8)%Non-deductible stock-based compensation3.2 %2.8 %Other0.4 %0.6 %Effective tax rate30.2 %19.9 % During the fiscal year ended March 31, 2026, we recognized $24 million of tax benefit from higher excess stock-based compensation in various jurisdictions. Excluding the effect of the excess stock-based compensation, the effective tax rate for fiscal year 2026 would have been 26.9 percent. During the fiscal year ended March 31, 2025, we recognized a $51 million tax charge to increase the valuation allowance on Swiss deferred tax assets as a result of various factors including our business operations, geographical income mix, and an increase in the Swiss interest rates. Excluding the effect of the change in valuation allowance, the effective tax rate for fiscal year 2025 would have been 27.0 percent. During the fiscal year ended March 31, 2024, we recognized a $92 million tax benefit to remeasure our Swiss deferred tax assets as a result of an increase in the Swiss statutory tax rate. In addition, we recognized a lower period cost for U.S. tax on our non-U.S. earnings, including a cumulative one-time benefit, due to R&D capitalization guidance issued by the U.S. Treasury during the fiscal year. Excluding the effects of these items, the effective tax rate for fiscal year 2024 would have been 26.7 percent. 61 61 61 Table of Contents Table of Contents Income taxes paid, net of refunds received, for the fiscal year ended March 31, 2026 were as follows (in millions): Year Ended March 31, 2026U.S. federal$91 U.S. state and local19 Foreign Canada - British Columbia20 Canada - federal15 Other56 Income taxes paid, net of refunds$201 Income taxes paid, net of refunds received, for the fiscal years ended March 31, 2025 and 2024 were $404 million and $300 million, respectively. Our foreign subsidiaries are generally subject to U.S. tax, and to the extent earnings from these subsidiaries can be repatriated without a material tax cost, such earnings will not be indefinitely reinvested. As of March 31, 2026, approximately $796 million of our cash and cash equivalents were domiciled in foreign tax jurisdictions. All of our foreign cash is available for repatriation without a material tax cost. The components of net deferred tax assets, as of March 31, 2026 and 2025 consisted of (in millions): As of March 31, 20262025Deferred tax assets:Accruals, reserves and other expenses$239 $227 Tax credit carryforwards250 235 Research and development capitalization537 523 Stock-based compensation42 43 Amortization and depreciation15 - Net operating loss and capital loss carryforwards544 450 Swiss intra-entity tax asset1,355 1,485 Total2,982 2,963 Valuation allowance(544)(534)Deferred tax assets, net of valuation allowance2,438 2,429 Deferred tax liabilities:Amortization and depreciation - (7)Other(6)(3)Total(6)(10)Deferred tax assets, net of valuation allowance and deferred tax liabilities$2,432 $2,419 As of March 31, 2026, we have net operating loss carry forwards of approximately $3.6 billion of which approximately $40 million is attributable to various acquired companies. The net operating loss carry forwards include $3.6 billion related to Switzerland and $52 million related to U.S. states and other foreign jurisdictions. Substantially all of these carryforwards, if not fully realized, will begin to expire in fiscal year 2027. Switzerland has a seven-year carryforward period and does not permit the carry back of losses. We also have U.S. federal credit carryforwards of $15 million and California credit carryforwards of $224 million. The California tax credit carryforwards can be carried forward indefinitely. As of March 31, 2026, we maintained a total valuation allowance of $544 million related to certain U.S. state deferred tax assets, Swiss deferred tax assets, and foreign capital loss carryovers, due to uncertainty about the future realization of these assets. 62 62 62 Table of Contents Table of Contents The total unrecognized tax benefits as of March 31, 2026, 2025, and 2024 were $677 million, $688 million and $804 million, respectively. A reconciliation of the beginning and ending balance of unrecognized tax benefits is summarized as follows (in millions): Balance as of March 31, 2023$867 Increases in unrecognized tax benefits related to prior year tax positions14 Decreases in unrecognized tax benefits related to prior year tax positions(173)Increases in unrecognized tax benefits related to current year tax positions97 Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations(2)Changes in unrecognized tax benefits due to foreign currency translation1 Balance as of March 31, 2024804 Increases in unrecognized tax benefits related to prior year tax positions18 Decreases in unrecognized tax benefits related to prior year tax positions(214)Increases in unrecognized tax benefits related to current year tax positions94 Decreases in unrecognized tax benefits related to settlements with taxing authorities(12)Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations(2)Balance as of March 31, 2025688 Increases in unrecognized tax benefits related to prior year tax positions41 Decreases in unrecognized tax benefits related to prior year tax positions(22)Increases in unrecognized tax benefits related to current year tax positions63 Decreases in unrecognized tax benefits related to settlements with taxing authorities(94)Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations(5)Changes in unrecognized tax benefits due to foreign currency translation6 Balance as of March 31, 2026$677 As of March 31, 2026, approximately $556 million of the unrecognized tax benefits would affect our effective tax rate, a portion of which would be impacted by a valuation allowance. Interest and penalties related to estimated obligations for tax positions taken in our tax returns are recognized in income tax expense in our Consolidated Statements of Operations. The combined amount of accrued interest and penalties related to tax positions taken on our tax returns and included in non-current other liabilities was approximately $154 million as of March 31, 2026 and $127 million as of March 31, 2025. We file income tax returns in the United States, including various state and local jurisdictions. As of March 31, 2026, our subsidiaries file tax returns in various foreign jurisdictions, including Canada, Germany, South Korea, Switzerland, and the United Kingdom. As of the period ended March 31, 2026, we remain subject to income tax examination in these jurisdictions, including the United States for fiscal years after 2017, Canada for fiscal years after 2015, Germany for fiscal years after 2019, South Korea for fiscal years after 2018, Switzerland for fiscal years after 2015, and the United Kingdom for fiscal years after 2021. We are currently under income tax examination in various jurisdictions, including the United States for fiscal years 2018 through 2022. The timing and potential resolution of income tax examinations is highly uncertain. While we continue to measure our uncertain tax positions, the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued. It is also reasonably possible that a material reduction of unrecognized tax benefits may occur within the next 12 months, impacting our effective tax rate. The actual amount could vary significantly depending on the ultimate timing and nature of any settlements and tax interpretations. 63 63 63 Table of Contents Table of Contents --- ## Modified: Market-Based Restricted Stock Units **Key changes:** - Reworded sentence: "The number of shares of common stock to be issued at vesting for these awards are based on our total stockholder return ("TSR") relative to the performance of either companies in the Nasdaq-100 (for awards granted in fiscal years 2023 and 2024) or the S&P 500 Index (for awards granted in fiscal year 2025 and going forward) ("Relative TSR") and on absolute TSR performance measured against pre-established goals, which started in fiscal year 2025 ("Absolute TSR"), each over a three-year period." - Reworded sentence: "The following table summarizes our market-based restricted stock unit activity, presented with the maximum number of shares that could potentially vest, for the year ended March 31, 2026:Market-BasedRestricted StockUnits(in thousands)Weighted-Average GrantDate Fair ValueOutstanding as of March 31, 2025637 $115.43 Granted367 103.73 Vested(34)150.48 Forfeited or cancelled(80)176.70 Outstanding as of March 31, 2026890 $103.80 Outstanding as of March 31, 2025 Outstanding as of March 31, 2026 The weighted-average grant date fair values of market-based restricted stock units granted during fiscal years 2026, 2025, and 2024 were $103.73, $80.91, and $152.92, respectively." **Prior (2025):** Our market-based restricted stock units vest contingent upon the achievement of pre-determined market and service conditions. If these market conditions are not met but service conditions are met, the market-based restricted stock units will not vest; however, any compensation expense we have recognized to date will not be reversed. The number of shares of common stock to be issued at vesting for these awards are based on our total stockholder return ("TSR") relative to the performance of either companies in the Nasdaq-100 (for awards granted in fiscal years 2023 and 2024) or the S&P 500 Index (for awards granted in fiscal year 2025) ("Relative TSR") and on absolute TSR performance measured against pre-established goals, which started in fiscal year 2025 ("Absolute TSR"), each over a three-year period. Payout with respect to the Relative TSR component ranges from zero to 200 percent of the target number of Relative TSR units granted, and payout with respect to the Absolute TSR component ranges from zero to 75 percent of the target number of the underlying base award (which is comprised of Performance-Based Restricted Stock Units and Relative TSR units). These awards cliff-vest after the completion of the three-year measurement period, contingent on the achievement of both market and service conditions. We amortize the fair values of market-based restricted stock units over the requisite service period. The following table summarizes our market-based restricted stock unit activity, presented with the maximum number of shares that could potentially vest, for the year ended March 31, 2025:Market-BasedRestricted StockUnits(in thousands)Weighted-Average GrantDate Fair ValueOutstanding as of March 31, 2024354 $168.53 Granted381 80.91 Vested(25)173.25 Forfeited or cancelled(73)173.25 Outstanding as of March 31, 2025637 $115.43 Outstanding as of March 31, 2024 Outstanding as of March 31, 2025 The weighted-average grant date fair values of market-based restricted stock units granted during fiscal years 2025, 2024, and 2023 were $80.91, $152.92, and $176.70, respectively. The fair values of market-based restricted stock units that vested during fiscal years 2025, 2024, and 2023 were $3 million, $4 million, and $12 million, respectively. ESPP Pursuant to our ESPP, eligible employees may authorize payroll deductions of between 2 percent and 10 percent of their compensation to purchase shares of common stock at 85 percent of the lower of the market price of our common stock on the date of commencement of the applicable offering period or on the last day of each six-month purchase period. The following table summarizes our ESPP activity for fiscal years ended March 31, 2025, 2024, and 2023: Shares Issued (in millions)Exercise Prices for Purchase RightsWeighted-Average Fair Values of Purchase RightsFiscal Year 20230.7 $96.34 - $111.86$33.91 Fiscal Year 20240.8 $94.96 - $102.58$30.82 Fiscal Year 20250.7 $102.58 - $120.94$34.07 Fiscal Year 2023 $96.34 - $111.86 Fiscal Year 2024 $94.96 - $102.58 Fiscal Year 2025 $102.58 - $120.94 The fair values were estimated on the date of grant using the Black-Scholes valuation model. We issue new common stock out of the ESPP's pool of authorized shares. As of March 31, 2025, 2.1 million shares were available for grant under our ESPP. 70 70 70 Table of Contents Table of Contents **Current (2026):** Our market-based restricted stock units vest contingent upon the achievement of pre-determined market and service conditions. If these market conditions are not met but service conditions are met, the market-based restricted stock units will not vest; however, any compensation expense we have recognized to date will not be reversed. The number of shares of common stock to be issued at vesting for these awards are based on our total stockholder return ("TSR") relative to the performance of either companies in the Nasdaq-100 (for awards granted in fiscal years 2023 and 2024) or the S&P 500 Index (for awards granted in fiscal year 2025 and going forward) ("Relative TSR") and on absolute TSR performance measured against pre-established goals, which started in fiscal year 2025 ("Absolute TSR"), each over a three-year period. Payout with respect to the Relative TSR component ranges from zero to 200 percent of the target number of Relative TSR units granted, and payout with respect to the Absolute TSR component ranges from zero to 75 percent of the target number of the underlying base award (which is comprised of Performance-Based Restricted Stock Units and Relative TSR units). These awards cliff-vest after the completion of the three-year measurement period, contingent on the achievement of both market and service conditions. We amortize the fair values of market-based restricted stock units over the requisite service period. The following table summarizes our market-based restricted stock unit activity, presented with the maximum number of shares that could potentially vest, for the year ended March 31, 2026:Market-BasedRestricted StockUnits(in thousands)Weighted-Average GrantDate Fair ValueOutstanding as of March 31, 2025637 $115.43 Granted367 103.73 Vested(34)150.48 Forfeited or cancelled(80)176.70 Outstanding as of March 31, 2026890 $103.80 Outstanding as of March 31, 2025 Outstanding as of March 31, 2026 The weighted-average grant date fair values of market-based restricted stock units granted during fiscal years 2026, 2025, and 2024 were $103.73, $80.91, and $152.92, respectively. The fair values of market-based restricted stock units that vested during fiscal years 2026, 2025, and 2024 were $5 million, $3 million, and $4 million, respectively. ESPP Pursuant to our ESPP, eligible employees were permitted to authorize payroll deductions of between 2 percent and 10 percent of their compensation to purchase shares of common stock at 85 percent of the lower of the market price of our common stock on the date of commencement of the applicable offering period or on the last day of each six-month purchase period. The final purchase under the ESPP occurred during the fourth quarter of fiscal year 2026. In connection with the Merger, no offering period commenced following the February 2026 purchase. The following table summarizes our ESPP activity for fiscal years ended March 31, 2026, 2025, and 2024: Shares Issued (in millions)Exercise Prices for Purchase RightsWeighted-Average Fair Values of Purchase RightsFiscal Year 20240.8 $94.96 - $102.58$30.82 Fiscal Year 20250.7 $102.58 - $120.94$34.07 Fiscal Year 20260.8 $109.10 - $143.79$32.74 Fiscal Year 2024 $94.96 - $102.58 Fiscal Year 2025 $102.58 - $120.94 Fiscal Year 2026 $109.10 - $143.79 The fair values were estimated on the date of grant using the Black-Scholes valuation model. Shares issued under the ESPP were issued from the plan's authorized share pool. 72 72 72 Table of Contents Table of Contents --- ## Modified: Stock-Based Compensation Expense **Key changes:** - Reworded sentence: "The following table summarizes stock-based compensation expense resulting from stock options, restricted stock units, market-based restricted stock units, performance-based restricted stock units, and the ESPP purchase rights included in our Consolidated Statements of Operations (in millions): Year Ended March 31, 202620252024Cost of revenue$11 $14 $8 Research and development467 457 418 Marketing and sales57 56 52 General and administrative121 115 106 Stock-based compensation expense$656 $642 $584 During the fiscal years ended March 31, 2026, 2025, and 2024, we recognized $85 million, $85 million, and $79 million, respectively, of deferred income tax benefit related to our stock-based compensation expense." **Prior (2025):** The following table summarizes stock-based compensation expense resulting from stock options, restricted stock units, market-based restricted stock units, performance-based restricted stock units, and the ESPP purchase rights included in our Consolidated Statements of Operations (in millions): Year Ended March 31, 202520242023Cost of revenue$14 $8 $7 Research and development457 418 367 Marketing and sales56 52 59 General and administrative115 106 115 Stock-based compensation expense$642 $584 $548 During the fiscal years ended March 31, 2025, 2024, and 2023, we recognized $85 million, $79 million, and $72 million, respectively, of deferred income tax benefit related to our stock-based compensation expense. As of March 31, 2025, our total unrecognized compensation cost related to stock options, restricted stock units, market-based restricted stock units, and performance-based restricted stock units was $766 million and is expected to be recognized over a weighted-average service period of 1.7 years. Of the $766 million of unrecognized compensation cost, $740 million relates to restricted stock units, $13 million relates to performance-based restricted stock units, and $13 million relates to market-based restricted stock units. **Current (2026):** The following table summarizes stock-based compensation expense resulting from stock options, restricted stock units, market-based restricted stock units, performance-based restricted stock units, and the ESPP purchase rights included in our Consolidated Statements of Operations (in millions): Year Ended March 31, 202620252024Cost of revenue$11 $14 $8 Research and development467 457 418 Marketing and sales57 56 52 General and administrative121 115 106 Stock-based compensation expense$656 $642 $584 During the fiscal years ended March 31, 2026, 2025, and 2024, we recognized $85 million, $85 million, and $79 million, respectively, of deferred income tax benefit related to our stock-based compensation expense. As of March 31, 2026, our total unrecognized compensation cost related to stock options, restricted stock units, market-based restricted stock units, and performance-based restricted stock units was $722 million and is expected to be recognized over a weighted-average service period of 1.7 years. Of the $722 million of unrecognized compensation cost, $682 million relates to restricted stock units, $21 million relates to market-based restricted stock units, and $19 million relates to performance-based restricted stock units. --- ## Modified: Stock Performance Graph **Key changes:** - Reworded sentence: "The following graph shows a five-year comparison of cumulative total returns during the period from March 31, 2021 through March 31, 2026, for our common stock, the S&P 500 Index (to which EA was added in July 2002), the Nasdaq Composite Index, and the RDG Technology Composite Index, each of which assumes an initial value of $100." - Reworded sentence: "19 19 19 Table of Contents Table of Contents *Based on $100 invested on March 31, 2021 in stock or index, including reinvestment of dividends." **Prior (2025):** The following information shall not be deemed to be "filed" with the SEC nor shall this information be incorporated by reference into any future filing under the Securities Act of 1933, as amended, or the Exchange Act, as amended, except to the extent that we specifically incorporate it by reference into a filing. The following graph shows a five-year comparison of cumulative total returns during the period from March 31, 2020 through March 31, 2025, for our common stock, the S&P 500 Index (to which EA was added in July 2002), the Nasdaq Composite Index, and the RDG Technology Composite Index, each of which assumes an initial value of $100. Each measurement point is as of the end of each fiscal year. The performance of our stock depicted in the following graph is not necessarily indicative of the future performance of our stock. *Based on $100 invested on March 31, 2020 in stock or index, including reinvestment of dividends. March 31, 202020212022202320242025Electronic Arts Inc.$100 $135 $127 $122 $135 $148 S&P 500 Index100 156 181 167 217 235 Nasdaq Composite Index100 173 187 162 219 233 RDG Technology Composite Index100 170 183 166 206 221 Item 6: [Reserved] 19 19 19 Table of Contents Table of Contents Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations OVERVIEW The following overview is a high-level discussion of our operating results, as well as some of the trends and drivers that affect our business. Management believes that an understanding of these trends and drivers provides important context for our results for the fiscal year ended March 31, 2025, as well as our future prospects. This summary is not intended to be exhaustive, nor is it intended to be a substitute for the detailed discussion and analysis provided elsewhere in this Form 10-K, including in the "Business" section and the "Risk Factors" above, the remainder of "Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A")" or the Consolidated Financial Statements and related Notes. **Current (2026):** The following information shall not be deemed to be "filed" with the SEC nor shall this information be incorporated by reference into any future filing under the Securities Act of 1933, as amended, or the Exchange Act, as amended, except to the extent that we specifically incorporate it by reference into a filing. The following graph shows a five-year comparison of cumulative total returns during the period from March 31, 2021 through March 31, 2026, for our common stock, the S&P 500 Index (to which EA was added in July 2002), the Nasdaq Composite Index, and the RDG Technology Composite Index, each of which assumes an initial value of $100. Each measurement point is as of the end of each fiscal year. The performance of our stock depicted in the following graph is not necessarily indicative of the future performance of our stock. 19 19 19 Table of Contents Table of Contents *Based on $100 invested on March 31, 2021 in stock or index, including reinvestment of dividends. March 31, 202120222023202420252026Electronic Arts Inc.$100 $94 $90 $100 $109 $155 S&P 500 Index100 116 107 139 150 177 Nasdaq Composite Index100 108 94 127 135 169 RDG Technology Composite Index100 107 97 121 129 137 Item 6: [Reserved] 20 20 20 Table of Contents Table of Contents Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations OVERVIEW The following overview is a high-level discussion of our operating results, as well as some of the trends and drivers that affect our business. Management believes that an understanding of these trends and drivers provides important context for our results for the fiscal year ended March 31, 2026, as well as our future prospects. This summary is not intended to be exhaustive, nor is it intended to be a substitute for the detailed discussion and analysis provided elsewhere in this Form 10-K, including in the "Business" section and the "Risk Factors" above, the remainder of "Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A")" or the Consolidated Financial Statements and related Notes. --- ## Modified: (16) EARNINGS PER SHARE **Key changes:** - Reworded sentence: "Year Ended March 31,(In millions, except per share amounts)202620252024Net income$887 $1,121 $1,273 Shares used to compute earnings per share:Weighted-average common stock outstanding - basic250 262 270 Dilutive potential common shares related to stock award plans3 2 2 Weighted-average common stock outstanding - diluted253 264 272 Earnings per share:Basic$3.55 $4.28 $4.71 Diluted$3.51 $4.25 $4.68 Certain restricted stock units, market-based restricted stock units and performance-based restricted stock units were excluded from the treasury stock method computation of diluted shares as their inclusion would have had an antidilutive effect." **Prior (2025):** The following table summarizes the computations of basic earnings per share ("Basic EPS") and diluted earnings per share ("Diluted EPS"). Basic EPS is computed as net income divided by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock-based compensation plans including stock options, restricted stock units, market-based restricted stock units, performance-based restricted stock units, and ESPP purchase rights using the treasury stock method. Year Ended March 31,(In millions, except per share amounts)202520242023Net income$1,121 $1,273 $802 Shares used to compute earnings per share:Weighted-average common stock outstanding - basic262 270 277 Dilutive potential common shares related to stock award plans2 2 1 Weighted-average common stock outstanding - diluted264 272 278 Earnings per share:Basic$4.28 $4.71 $2.90 Diluted$4.25 $4.68 $2.88 Certain restricted stock units, market-based restricted stock units and performance-based restricted stock units were excluded from the treasury stock method computation of diluted shares as their inclusion would have had an antidilutive effect. For the fiscal years ended March 31, 2025 and 2024, one million such shares were excluded, and for the fiscal year ended March 31, 2023, two million such shares were excluded. 74 74 74 Table of Contents Table of Contents **Current (2026):** The following table summarizes the computations of basic earnings per share ("Basic EPS") and diluted earnings per share ("Diluted EPS"). Basic EPS is computed as net income divided by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock-based compensation plans including stock options, restricted stock units, market-based restricted stock units, performance-based restricted stock units, and ESPP purchase rights using the treasury stock method. Year Ended March 31,(In millions, except per share amounts)202620252024Net income$887 $1,121 $1,273 Shares used to compute earnings per share:Weighted-average common stock outstanding - basic250 262 270 Dilutive potential common shares related to stock award plans3 2 2 Weighted-average common stock outstanding - diluted253 264 272 Earnings per share:Basic$3.55 $4.28 $4.71 Diluted$3.51 $4.25 $4.68 Certain restricted stock units, market-based restricted stock units and performance-based restricted stock units were excluded from the treasury stock method computation of diluted shares as their inclusion would have had an antidilutive effect. For the fiscal years ended March 31, 2026, 2025 and 2024, one million such shares were excluded. 76 76 76 Table of Contents Table of Contents --- ## Modified: Balance Sheet Hedging Activities **Key changes:** - Reworded sentence: "Our foreign currency forward contracts that are not designated as hedging instruments are accounted for as derivatives, with gains and losses resulting from changes in the fair value are reported in interest and other income (expense), net, in our Consolidated Statements of Operations." **Prior (2025):** Our foreign currency forward contracts that are not designated as hedging instruments are accounted for as derivatives whereby the fair value of the contracts are reported as other current assets or accounts payable, accrued, and other current liabilities on our Consolidated Balance Sheets, and gains and losses resulting from changes in the fair value are reported in interest and other income (expense), net, in our Consolidated Statements of Operations. The gains and losses on these foreign currency forward contracts generally offset the gains and losses in the underlying foreign-currency-denominated monetary assets and liabilities, which are also reported in interest and other income (expense), net, in our Consolidated Statements of Operations. Total gross notional amounts and fair values for currency derivatives that are not designated as hedging instruments are accounted for as follows (in millions):As of March 31, 2025As of March 31, 2024Notional AmountFair ValueNotional AmountFair ValueAssetLiabilityAssetLiabilityForward contracts to purchase$511 $1 $2 $452 $ - $5 Forward contracts to sell$582 $3 $1 $419 $4 $ - **Current (2026):** Our foreign currency forward contracts that are not designated as hedging instruments are accounted for as derivatives, with gains and losses resulting from changes in the fair value are reported in interest and other income (expense), net, in our Consolidated Statements of Operations. These gains and losses on these foreign currency forward contracts generally offset the gains and losses in the underlying foreign-currency-denominated monetary assets and liabilities, which are also reported in interest and other income (expense), net, in our Consolidated Statements of Operations. Total gross notional amounts and fair values for currency derivatives that are not designated as hedging instruments are accounted for as follows (in millions):As of March 31, 2026As of March 31, 2025Notional AmountFair ValueNotional AmountFair ValueAssetLiabilityAssetLiabilityForward contracts to purchase$638 $ - $6 $511 $1 $2 Forward contracts to sell$554 $3 $ - $582 $3 $1 --- ## Modified: Senior Notes **Key changes:** - Reworded sentence: "See Note 11 - Financing Arrangements to the Consolidated Financial Statements in this Form 10-K as it relates to our Senior Notes, which is incorporated by reference into this Item 7." **Prior (2025):** In February 2021, we issued $750 million aggregate principal amount of the 2031 Notes and $750 million aggregate principal amount of the 2051 Notes. The effective interest rate is 1.98% for the 2031 Notes and 3.04% for the 2051 Notes. Interest is payable semiannually in arrears, on February 15 and August 15 of each year. In February 2016, we issued $400 million aggregate principal amount of the 2026 Notes. The effective interest rate is 4.97% for the 2026 Notes. Interest is payable semiannually in arrears, on March 1 and September 1 of each year. See Note 12 - Financing Arrangements to the Consolidated Financial Statements in this Form 10-K as it relates to our Senior Notes, which is incorporated by reference into this Item 7. 29 29 29 Table of Contents Table of Contents **Current (2026):** In February 2021, we issued $750 million aggregate principal amount of the 2031 Notes and $750 million aggregate principal amount of the 2051 Notes. The effective interest rate is 1.98% for the 2031 Notes and 3.04% for the 2051 Notes. Interest is payable semiannually in arrears, on February 15 and August 15 of each year. See Note 11 - Financing Arrangements to the Consolidated Financial Statements in this Form 10-K as it relates to our Senior Notes, which is incorporated by reference into this Item 7. 30 30 30 Table of Contents Table of Contents --- ## Modified: Legal Proceedings **Key changes:** - Reworded sentence: "68 68 68 Table of Contents Table of Contents" **Prior (2025):** We are subject to claims and litigation arising in the ordinary course of business. We do not believe that any liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the aggregate, would have a material adverse effect on our Consolidated Financial Statements. 66 66 66 Table of Contents Table of Contents **Current (2026):** We are subject to claims and litigation arising in the ordinary course of business. We do not believe that any liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the aggregate, would have a material adverse effect on our Consolidated Financial Statements. 68 68 68 Table of Contents Table of Contents --- ## Modified: Remaining Performance Obligations **Key changes:** - Reworded sentence: "As of March 31, 2026, revenue allocated to remaining performance obligations consists of our deferred revenue balance of $2,415 million." - Reworded sentence: "59 59 59 Table of Contents Table of Contents" **Prior (2025):** As of March 31, 2025, revenue allocated to remaining performance obligations consists of our deferred revenue balance of $1,866 million. These balances exclude any estimates for future variable consideration as we have elected the optional exemption to exclude sales-based royalty revenue. 58 58 58 Table of Contents Table of Contents **Current (2026):** As of March 31, 2026, revenue allocated to remaining performance obligations consists of our deferred revenue balance of $2,415 million. These balances exclude any estimates for future variable consideration as we have elected the optional exemption to exclude sales-based royalty revenue. 59 59 59 Table of Contents Table of Contents --- ## Modified: (7) GOODWILL AND ACQUISITION-RELATED INTANGIBLES, NET **Key changes:** - Reworded sentence: "The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2026 are as follows (in millions): As of March 31, 2025ActivityEffects of Foreign Currency TranslationAs of March 31, 2026Goodwill$5,744 $9 $3 $5,756 Accumulated impairment(368) - - (368)Total$5,376 $9 $3 $5,388 As of" **Prior (2025):** The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2025 are as follows (in millions): As of March 31, 2024ActivityEffects of Foreign Currency TranslationAs of March 31, 2025Goodwill$5,747 $ - $(3)$5,744 Accumulated impairment(368) - - (368)Total$5,379 $ - $(3)$5,376 As of **Current (2026):** The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2026 are as follows (in millions): As of March 31, 2025ActivityEffects of Foreign Currency TranslationAs of March 31, 2026Goodwill$5,744 $9 $3 $5,756 Accumulated impairment(368) - - (368)Total$5,376 $9 $3 $5,388 As of --- ## Modified: Financial Results **Key changes:** - Reworded sentence: "Our key financial results for our fiscal year ended March 31, 2026 were as follows: •Total net revenue was $7,531 million, up 1 percent year-over-year." **Prior (2025):** Our key financial results for our fiscal year ended March 31, 2025 were as follows: •Total net revenue was $7,463 million, down 1 percent year-over-year. •Live services and other net revenue was $5,461 million, down 2 percent year-over-year. •Gross margin was 79.3 percent, up 2 percentage points year-over-year. •Operating expenses were $4,400 million, up 2 percent year-over-year. •Operating income was $1,520 million, flat year-over-year. •Net income was $1,121 million with diluted earnings per share of $4.25. •Net cash provided by operating activities was $2,079 million, down 10 percent year-over-year. •Total cash, cash equivalents and short-term investments were $2,248 million. •We returned $2,699 million to stockholders through our capital return programs, repurchasing 17.6 million shares for approximately $2,500 million and returning $199 million through our quarterly cash dividend program. **Current (2026):** Our key financial results for our fiscal year ended March 31, 2026 were as follows: •Total net revenue was $7,531 million, up 1 percent year-over-year. •Live services and other net revenue was $5,383 million, down 1 percent year-over-year. •Gross margin was 79 percent, flat year-over-year. •Operating expenses were $4,785 million, up 9 percent year-over-year. •Operating income was $1,162 million, down 24 percent year-over-year. •Net income was $887 million with diluted earnings per share of $3.51. •Net cash provided by operating activities was $2,553 million, up 23 percent year-over-year. •Total cash, cash equivalents and short-term investments were $2,980 million. •We returned $941 million to stockholders through our capital return programs, repurchasing 5.3 million shares for approximately $750 million and returning $191 million through our quarterly cash dividend program. --- ## Modified: (17) SEGMENT AND REVENUE INFORMATION **Key changes:** - Reworded sentence: "As of March 31, 2026, we have one reportable segment, which represents our only operating segment." - Reworded sentence: "The measure of segment assets are reported on the Consolidated Balance Sheets as total assets." - Reworded sentence: "This also includes sales of extra content associated with our online-hosted services such as our Ultimate Team game mode, revenue allocated to the future update rights from licensing of software to third-parties, subscription services, and revenue recognized from third parties that publish games and services under a license to certain of our intellectual property assets." - Reworded sentence: "Packaged goods primarily include revenue from full games that are sold physically through distribution arrangements, mass market retailers, and specialty stores." - Reworded sentence: "Information about our total net revenue by platform for the fiscal years ended March 31, 2026, 2025, and 2024 is presented below (in millions):Year Ended March 31, 202620252024Platform net revenueConsole$4,694 $4,776 $4,632 PC and other1,746 1,547 1,717 Mobile1,091 1,140 1,213 Net revenue$7,531 $7,463 $7,562 Information about our operations in North America and internationally for the fiscal years ended March 31, 2026, 2025, and 2024 is presented below (in millions): Year Ended March 31, 202620252024Net revenue from unaffiliated customersNorth America$3,034 $3,078 $3,001 International4,497 4,385 4,561 Net revenue$7,531 $7,463 $7,562 As of March 31, 20262025Long-lived assetsNorth America$463 $438 International150 148 Total$613 $586 We attribute net revenue from external customers to individual countries based on the location of the legal entity that sells the products and/or services." **Prior (2025):** Our reporting segment is based upon: our internal organizational structure; the manner in which our operations are managed; the criteria used by our Chief Executive Officer, our Chief Operating Decision Maker ("CODM"), to evaluate segment performance; the availability of separate financial information; and overall materiality considerations. As of March 31, 2025, we have one reportable segment, which represents our only operating segment. Our CODM makes decisions on resource allocation and assesses performance of the business based on our consolidated results, including net income. Our CODM does not review any information regarding total assets on an operating segment basis, and accordingly, no disclosure is made with respect thereto. Information about our single reportable segment net revenue, net income, and significant segment expenses for the fiscal years ended March 31, 2025, 2024, and 2023 is presented below (in millions): Year Ended March 31,202520242023Net revenue$7,463 $7,562 $7,426 Less:Cost of revenue (1)1,489 1,626 1,665 Research and development (1)2,112 2,002 1,961 Marketing and sales (1)906 967 919 General and administrative (1)625 583 568 Amortization and impairment of intangibles107 218 278 Restructuring and related charges62 64 155 Stock-based compensation642 584 548 Interest and other (income) expenses, net(85)(71)6 Provision for income taxes484 316 524 Net income$1,121 $1,273 $802 (1) Excludes amounts related to amortization and impairment of intangibles, restructuring and related charges, and stock-based compensation, which are presented separately in the table above. Cost of revenue (1) Research and development (1) Marketing and sales (1) General and administrative (1) (1) Excludes amounts related to amortization and impairment of intangibles, restructuring and related charges, and stock-based compensation, which are presented separately in the table above. Information about our total net revenue by timing of recognition for the fiscal years ended March 31, 2025, 2024, and 2023 is presented below (in millions):Year Ended March 31,202520242023Net revenue by timing of recognitionRevenue recognized at a point in time$2,665 $2,563 $2,389 Revenue recognized over time4,798 4,999 5,037 Net revenue$7,463 $7,562 $7,426 Generally, performance obligations that are recognized upfront upon transfer of control are classified as revenue recognized at a point in time, while performance obligations that are recognized over either the Estimated Offering Period, contractual term or subscription period as the services are provided are classified as revenue recognized over time. Revenue recognized at a point in time includes revenue allocated to the software license performance obligation. This also includes a portion of revenue from the licensing of software to third-parties. Revenue recognized over time includes service revenue allocated to the future update rights and the online hosting performance obligations. This also includes online-hosted services such as our Ultimate Team game mode, revenue allocated to the future update rights from licensing of software to third-parties, subscription services, and revenue recognized from third parties that publish games and services under a license to certain of our intellectual property assets. 75 75 75 Table of Contents Table of Contents Information about our total net revenue by composition for the fiscal years ended March 31, 2025, 2024, and 2023 is presented below (in millions): Year Ended March 31, 202520242023Net revenue by compositionFull game downloads$1,478 $1,343 $1,262 Packaged goods524 672 675 Full game2,002 2,015 1,937 Live services and other5,461 5,547 5,489 Net revenue$7,463 $7,562 $7,426 Live services and other Full game net revenue includes full game downloads and packaged goods. Full game downloads primarily include revenue from digital sales of full games on console, PC, and certain licensing revenue. Packaged goods primarily includes revenue from full games that are sold physically to mass market retailers, specialty stores and through distribution arrangements. Live services and other net revenue primarily includes revenue from sales of extra content for console, PC, and mobile games, certain licensing revenue, subscriptions, and advertising. Information about our total net revenue by platform for the fiscal years ended March 31, 2025, 2024, and 2023 is presented below (in millions):Year Ended March 31, 202520242023Platform net revenueConsole$4,776 $4,632 $4,443 PC and other1,547 1,717 1,729 Mobile1,140 1,213 1,254 Net revenue$7,463 $7,562 $7,426 Information about our operations in North America and internationally for the fiscal years ended March 31, 2025, 2024, and 2023 is presented below (in millions): Year Ended March 31, 202520242023Net revenue from unaffiliated customersNorth America$3,078 $3,001 $3,151 International4,385 4,561 4,275 Net revenue$7,463 $7,562 $7,426 As of March 31, 20252024Long-lived assetsNorth America$438 $420 International148 158 Total$586 $578 We attribute net revenue from external customers to individual countries based on the location of the legal entity that sells the products and/or services. Note that revenue attributed to the legal entity that makes the sale is often not the country where the consumer resides. For example, revenue generated by our Swiss legal entity includes digital revenue from consumers who reside outside of Switzerland, including consumers who reside outside of Europe. Revenue generated by our Swiss legal entity during fiscal years 2025, 2024, and 2023 represents $4,279 million, $4,374 million and $4,085 million or 57 percent, 58 percent and 55 percent of our total net revenue, respectively. Revenue generated in the United States represents over 99 percent of our total North America net revenue. There were no other countries with net revenue greater than 10 percent. 76 76 76 Table of Contents Table of Contents In fiscal year 2025, our direct sales to Sony and Microsoft represented approximately 39 percent and 17 percent of total net revenue, respectively. In fiscal year 2024, our direct sales to Sony and Microsoft represented approximately 37 percent and 16 percent of total net revenue, respectively. In fiscal year 2023, our direct sales to Sony and Microsoft represented approximately 32 percent and 16 percent of total net revenue, respectively. 77 77 77 Table of Contents Table of Contents **Current (2026):** Our reporting segment is based upon: our internal organizational structure; the manner in which our operations are managed; the criteria used by our Chief Executive Officer, our Chief Operating Decision Maker ("CODM"), to evaluate segment performance; the availability of separate financial information; and overall materiality considerations. As of March 31, 2026, we have one reportable segment, which represents our only operating segment. Our CODM makes decisions on resource allocation and assesses performance of the business based on our consolidated results, including net income. The measure of segment assets are reported on the Consolidated Balance Sheets as total assets. Information about our single reportable segment net revenue, net income, and significant segment expenses for the fiscal years ended March 31, 2026, 2025, and 2024 is presented below (in millions): Year Ended March 31,202620252024Net revenue$7,531 $7,463 $7,562 Less:Cost of revenue (1)1,536 1,489 1,626 Research and development (1)2,361 2,112 2,002 Marketing and sales (1)1,071 906 967 General and administrative (1)614 625 583 Acquisition-related expenses (2)131 107 218 Restructuring and related charges - 62 64 Stock-based compensation656 642 584 Interest and other (income) expenses, net(18)(85)(71)Provision for income taxes293 484 316 Net income$887 $1,121 $1,273 (1) Excludes amounts related to acquisition-related expenses, restructuring and related charges, and stock-based compensation, which are presented separately in the table above. (2) Includes (i) amortization and impairment of intangibles, and (ii) fees and other direct expenses related to the Merger described in Note 1, which are recorded within General and administrative expenses in the Consolidated Statements of Operations. Cost of revenue (1) Research and development (1) Marketing and sales (1) General and administrative (1) Acquisition-related expenses (2) (1) Excludes amounts related to acquisition-related expenses, restructuring and related charges, and stock-based compensation, which are presented separately in the table above. (2) Includes (i) amortization and impairment of intangibles, and (ii) fees and other direct expenses related to the Merger described in Note 1, which are recorded within General and administrative expenses in the Consolidated Statements of Operations. Information about our total net revenue by timing of recognition for the fiscal years ended March 31, 2026, 2025, and 2024 is presented below (in millions):Year Ended March 31,202620252024Net revenue by timing of recognitionRevenue recognized at a point in time$2,473 $2,665 $2,563 Revenue recognized over time5,058 4,798 4,999 Net revenue$7,531 $7,463 $7,562 Generally, performance obligations that are recognized upfront upon transfer of control are classified as revenue recognized at a point in time, while performance obligations that are recognized over either the Estimated Offering Period, contractual term or subscription period as the services are provided are classified as revenue recognized over time. Revenue recognized at a point in time includes revenue allocated to the software license performance obligation. This also includes a portion of revenue from the licensing of software to third-parties. Revenue recognized over time includes service revenue allocated to the future update rights and the online hosting performance obligations. This also includes sales of extra content associated with our online-hosted services such as our Ultimate Team game mode, revenue allocated to the future update rights from licensing of software to third-parties, subscription services, and revenue recognized from third parties that publish games and services under a license to certain of our intellectual property assets. 77 77 77 Table of Contents Table of Contents Information about our total net revenue by composition for the fiscal years ended March 31, 2026, 2025, and 2024 is presented below (in millions): Year Ended March 31, 202620252024Net revenue by compositionFull game downloads$1,708 $1,478 $1,343 Packaged goods440 524 672 Full game2,148 2,002 2,015 Live services and other5,383 5,461 5,547 Net revenue$7,531 $7,463 $7,562 Live services and other Full game net revenue includes full game downloads and packaged goods. Full game downloads primarily include revenue from digital sales of full games on console, PC, and certain licensing revenue. Packaged goods primarily include revenue from full games that are sold physically through distribution arrangements, mass market retailers, and specialty stores. Live services and other net revenue primarily includes revenue from sales of extra content for console, PC, and mobile games, certain licensing revenue, subscriptions, and advertising. Information about our total net revenue by platform for the fiscal years ended March 31, 2026, 2025, and 2024 is presented below (in millions):Year Ended March 31, 202620252024Platform net revenueConsole$4,694 $4,776 $4,632 PC and other1,746 1,547 1,717 Mobile1,091 1,140 1,213 Net revenue$7,531 $7,463 $7,562 Information about our operations in North America and internationally for the fiscal years ended March 31, 2026, 2025, and 2024 is presented below (in millions): Year Ended March 31, 202620252024Net revenue from unaffiliated customersNorth America$3,034 $3,078 $3,001 International4,497 4,385 4,561 Net revenue$7,531 $7,463 $7,562 As of March 31, 20262025Long-lived assetsNorth America$463 $438 International150 148 Total$613 $586 We attribute net revenue from external customers to individual countries based on the location of the legal entity that sells the products and/or services. Note that revenue attributed to the legal entity that makes the sale is often not the country where the consumer resides. For example, revenue generated by our Swiss legal entity includes digital revenue from consumers who reside outside of Switzerland, including consumers who reside outside of Europe. Revenue generated by our Swiss legal entity during fiscal years 2026, 2025, and 2024 represents $4,407 million, $4,279 million and $4,374 million or 59 percent, 57 percent and 58 percent of our total net revenue, respectively. Revenue generated in the United States represents over 99 percent of our total North America net revenue. There were no other countries with net revenue greater than 10 percent. 78 78 78 Table of Contents Table of Contents In fiscal year 2026, our direct sales to Sony and Microsoft represented approximately 39 percent and 16 percent of total net revenue, respectively. In fiscal year 2025, our direct sales to Sony and Microsoft represented approximately 39 percent and 17 percent of total net revenue, respectively. In fiscal year 2024, our direct sales to Sony and Microsoft represented approximately 37 percent and 16 percent of total net revenue, respectively. 79 79 79 Table of Contents Table of Contents --- ## Modified: As of March 31, 2025 **Key changes:** - Reworded sentence: "The effects of cash flow hedge accounting in our Consolidated Statements of Operations for the fiscal years ended March 31, 2026, 2025, and 2024 are as follows (in millions):Year Ended March 31,202620252024Net revenueResearch and developmentNet revenueResearch and developmentNet revenueResearch and developmentTotal amounts presented in our Consolidated Statements of Operations in which the effects of cash flow hedges are recorded$7,531 $2,828 $7,463 $2,569 $7,562 $2,420 Gains (losses) on foreign currency forward contracts designated as cash flow hedges$(42)$6 $18 $(11)$56 $(8)" **Prior (2025):** The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2025 and 2024 (in millions): As of March 31, 2025As of March 31, 2024 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$46 $46 $231 $231 Due 1 year through 5 years63 63 126 126 Due after 5 years3 3 5 5 Short-term investments$112 $112 $362 $362 **Current (2026):** The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2026 and 2025 (in millions): As of March 31, 2026As of March 31, 2025 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$70 $70 $46 $46 Due 1 year through 5 years45 45 63 63 Due after 5 years1 1 3 3 Short-term investments$116 $116 $112 $112 --- ## Modified: Net Revenue by Composition **Key changes:** - Reworded sentence: "Our net revenue by composition for fiscal years 2026 and 2025 was as follows (in millions):Year Ended March 31,20262025$ Change% ChangeNet revenue:Full game downloads$1,708 $1,478 $230 16 %Packaged goods440 524 (84)(16)%Full game$2,148 $2,002 $146 7 %Live services and other$5,383 $5,461 $(78)(1)%Total net revenue$7,531 $7,463 $68 1 % Full Game Net Revenue Full game net revenue includes full game downloads and packaged goods." - Reworded sentence: "Packaged goods primarily include revenue from full games that are sold physically through distribution arrangements, mass market retailers, and specialty stores." - Reworded sentence: "Live services and other net revenue for fiscal year 2026 was $5,383 million, primarily driven by sales of extra content for our global football, American football, and The Sims franchises." **Prior (2025):** Our net revenue by composition for fiscal years 2025 and 2024 was as follows (in millions):Year Ended March 31,20252024$ Change% ChangeNet revenue:Full game downloads$1,478 $1,343 $135 10 %Packaged goods524 672 (148)(22)%Full game$2,002 $2,015 $(13)(1)%Live services and other$5,461 $5,547 $(86)(2)%Total net revenue$7,463 $7,562 $(99)(1)% Full Game Net Revenue Full game net revenue includes full game downloads and packaged goods. Full game downloads primarily include revenue from digital sales of full games on console, PC, and certain licensing revenue. Packaged goods primarily includes revenue from full games that are sold physically to mass market retailers, specialty stores and through distribution arrangements. Full game net revenue for fiscal year 2025 was $2,002 million, primarily driven by EA SPORTS FC 25, EA SPORTS College Football 25, EA SPORTS FC 24, and EA SPORTS Madden NFL 25. Full game net revenue for fiscal year 2025 decreased $13 million, or 1 percent, as compared to fiscal year 2024. This decrease was primarily driven by the prior year release of Star Wars Jedi: Survivor, and legacy FIFA titles within our global football franchise, partially offset by our American football franchises driven by EA SPORTS College Football 25 and our EA SPORTS FC franchise. Live Services and Other Net Revenue Live services and other net revenue primarily includes revenue from sales of extra content for console, PC, and mobile games, certain licensing revenue, subscriptions, and advertising. Live services and other net revenue for fiscal year 2025 was $5,461 million, primarily driven by sales of extra content for our global football and American football franchises, Apex Legends, and The Sims 4. Live services and other net revenue for fiscal 26 26 26 Table of Contents Table of Contents year 2025 decreased $86 million, or 2 percent, as compared to fiscal year 2024. This decrease was primarily driven by decreased sales of extra content for Apex Legends and from sunset mobile titles, partially offset by an increase in net revenue primarily driven by sales of extra content for Ultimate Team within our American football and global football franchises **Current (2026):** Our net revenue by composition for fiscal years 2026 and 2025 was as follows (in millions):Year Ended March 31,20262025$ Change% ChangeNet revenue:Full game downloads$1,708 $1,478 $230 16 %Packaged goods440 524 (84)(16)%Full game$2,148 $2,002 $146 7 %Live services and other$5,383 $5,461 $(78)(1)%Total net revenue$7,531 $7,463 $68 1 % Full Game Net Revenue Full game net revenue includes full game downloads and packaged goods. Full game downloads primarily include revenue from digital sales of full games on console, PC, and certain licensing revenue. Packaged goods primarily include revenue from full games that are sold physically through distribution arrangements, mass market retailers, and specialty stores. Full game net revenue for fiscal year 2026 was $2,148 million, primarily driven by EA SPORTS FC 26, Battlefield 6, EA SPORTS Madden NFL 26, and EA SPORTS FC 25. Full game net revenue for fiscal year 2026 increased $146 million, or 7 percent, as compared to fiscal year 2025. This increase was primarily due to the release of Battlefield 6, partially offset by a year-over-year decline in EA SPORTS College Football, the prior year release of Dragon Age: The Veilguard, and EA SPORTS FC. Live Services and Other Net Revenue Live services and other net revenue primarily includes revenue from sales of extra content for console, PC, and mobile games, certain licensing revenue, subscriptions, and advertising. Live services and other net revenue for fiscal year 2026 was $5,383 million, primarily driven by sales of extra content for our global football, American football, and The Sims franchises. Live services and other net revenue for fiscal year 2026 decreased 27 27 27 Table of Contents Table of Contents $78 million, or 1 percent, as compared to fiscal year 2025. This decrease was primarily driven by decreased sales of extra content for Apex Legends, and Ultimate Team within EA SPORTS Madden NFL, partially offset by increased sales of extra content within our global football franchise. --- ## Modified: At March 31, 2025 **Key changes:** - Reworded sentence: "Operating lease ROU assets and liabilities recorded on our Consolidated Balance Sheets as of March 31, 2026 and 2025 are as follows (in millions):As of March 31,Balance Sheet Classification20262025Operating lease ROU assets$283 $237 Other assetsOperating lease liabilities$63 $67 Accounts payable, accrued, and other current liabilitiesNoncurrent operating lease liabilities306 267 Other liabilitiesTotal operating lease liabilities$369 $334 Operating lease ROU assets Operating lease ROU assets Operating lease liabilities Operating lease liabilities Noncurrent operating lease liabilities Noncurrent operating lease liabilities Future minimum lease payments under operating leases as of March 31, 2026 were as follows (in millions): Fiscal Years Ending March 31,2027$76 202871 202952 203037 203145 Thereafter153 Total future lease payments434 Less imputed interest(65)Total operating lease liabilities$369 In addition to the amounts included in the table above, as of March 31, 2026, we have entered into two office leases that have not yet commenced with aggregate future lease payments of approximately $34 million." **Prior (2025):** 64 64 64 Table of Contents Table of Contents Operating lease ROU assets and liabilities recorded on our Consolidated Balance Sheets as of March 31, 2025 and 2024 are as follows (in millions):As of March 31,Balance Sheet Classification20252024Operating lease ROU assets$237 $243 Other assetsOperating lease liabilities$67 $66 Accounts payable, accrued, and other current liabilitiesNoncurrent operating lease liabilities267 248 Other liabilitiesTotal operating lease liabilities$334 $314 Operating lease ROU assets Operating lease ROU assets Operating lease liabilities Operating lease liabilities Noncurrent operating lease liabilities Noncurrent operating lease liabilities Future minimum lease payments under operating leases as of March 31, 2025 were as follows (in millions): Fiscal Years Ending March 31,2026$77 202767 202852 202935 203029 Thereafter123 Total future lease payments383 Less imputed interest(49)Total operating lease liabilities$334 In addition to the amounts included in the table above, as of March 31, 2025, we have entered into an office lease that has not yet commenced with aggregate future lease payments of approximately $17 million. This lease is expected to commence in fiscal year 2026, and will have a lease term of 10 years. 65 65 65 Table of Contents Table of Contents **Current (2026):** Operating lease ROU assets and liabilities recorded on our Consolidated Balance Sheets as of March 31, 2026 and 2025 are as follows (in millions):As of March 31,Balance Sheet Classification20262025Operating lease ROU assets$283 $237 Other assetsOperating lease liabilities$63 $67 Accounts payable, accrued, and other current liabilitiesNoncurrent operating lease liabilities306 267 Other liabilitiesTotal operating lease liabilities$369 $334 Operating lease ROU assets Operating lease ROU assets Operating lease liabilities Operating lease liabilities Noncurrent operating lease liabilities Noncurrent operating lease liabilities Future minimum lease payments under operating leases as of March 31, 2026 were as follows (in millions): Fiscal Years Ending March 31,2027$76 202871 202952 203037 203145 Thereafter153 Total future lease payments434 Less imputed interest(65)Total operating lease liabilities$369 In addition to the amounts included in the table above, as of March 31, 2026, we have entered into two office leases that have not yet commenced with aggregate future lease payments of approximately $34 million. The leases are expected to commence in fiscal year 2027, and will have lease term ranging from 5 to 10 years. 67 67 67 Table of Contents Table of Contents --- ## Modified: Stock Options **Key changes:** - Reworded sentence: "All outstanding options were fully vested and exercisable as of March 31, 2026." **Prior (2025):** Options granted under the 2019 Equity Plan and the 2000 Equity Plan generally expire ten years from the date of grant. All outstanding options were fully vested and exercisable as of March 31, 2025. The following table summarizes our stock option activity for the fiscal year ended March 31, 2025: Options(in thousands)Weighted-AverageExercise PricesWeighted-AverageRemainingContractualTerm (in years)AggregateIntrinsic Value(in millions)Outstanding as of March 31, 202412 $64.00 Granted3 136.58 Exercised(8)92.08 Forfeited, cancelled or expired(1)58.76 Outstanding as of March 31, 20256 $63.51 3.25$0.5 Vested and expected to vest6 $63.51 3.25$0.5 Exercisable as of March 31, 20256 $63.51 3.25$0.5 Outstanding as of March 31, 2024 Outstanding as of March 31, 2025 Exercisable as of March 31, 2025 The aggregate intrinsic value represents the total pre-tax intrinsic value based on our closing stock price as of March 31, 2025, which would have been received by the option holders had all the option holders exercised their options as of that date. The total intrinsic values of stock options exercised during fiscal years 2025, 2024, and 2023 were $0.4 million, $10 million, and $15 million, respectively. We issue new common stock from our authorized shares upon the exercise of stock options. **Current (2026):** Options granted under the 2019 Equity Plan and the 2000 Equity Plan generally expire ten years from the date of grant. All outstanding options were fully vested and exercisable as of March 31, 2026. The following table summarizes our stock option activity for the fiscal year ended March 31, 2026: Options(in thousands)Weighted-AverageExercise PricesWeighted-AverageRemainingContractualTerm (in years)AggregateIntrinsic Value(in millions)Outstanding as of March 31, 20256 $63.51 Granted2 164.39 Exercised(5)98.74 Forfeited, cancelled or expired - - Outstanding as of March 31, 20263 $57.19 2.00$0.4 Vested3 $57.19 2.00$0.4 Exercisable as of March 31, 20263 $57.19 2.00$0.4 Outstanding as of March 31, 2025 Outstanding as of March 31, 2026 Exercisable as of March 31, 2026 The aggregate intrinsic value represents the total pre-tax intrinsic value based on our closing stock price as of March 31, 2026, which would have been received by the option holders had all the option holders exercised their options as of that date. The total intrinsic values of stock options exercised during fiscal years 2026, 2025, and 2024 were $0.3 million, $0.4 million, and $10 million, respectively. We issue new common stock from our authorized shares upon the exercise of stock options. --- ## Modified: Accounts Payable, Accrued, and Other Current Liabilities **Key changes:** - Reworded sentence: "Accounts payable, accrued, and other current liabilities as of March 31, 2026 and 2025 consisted of (in millions): As of March 31, 20262025Accounts payable$128 $105 Accrued compensation and benefits563 486 Accrued royalties221 226 Deferred net revenue (other)112 94 Operating lease liabilities (See Note 12)63 67 Other accrued expenses396 297 Sales returns and price protection reserves81 84 Accounts payable, accrued, and other current liabilities$1,564 $1,359 Operating lease liabilities (See Note 12) Deferred net revenue (other) includes the deferral of licensing arrangements, subscription revenue, and other revenue for which revenue recognition criteria has not been met." **Prior (2025):** Accounts payable, accrued, and other current liabilities as of March 31, 2025 and 2024 consisted of (in millions): As of March 31, 20252024Accounts payable$105 $110 Accrued compensation and benefits486 476 Accrued royalties226 189 Deferred net revenue (other)94 59 Operating lease liabilities (See Note 13)67 66 Other accrued expenses297 286 Sales returns and price protection reserves84 90 Accounts payable, accrued, and other current liabilities$1,359 $1,276 Operating lease liabilities (See Note 13) Deferred net revenue (other) includes the deferral of licensing arrangements, subscription revenue, and other revenue for which revenue recognition criteria has not been met. **Current (2026):** Accounts payable, accrued, and other current liabilities as of March 31, 2026 and 2025 consisted of (in millions): As of March 31, 20262025Accounts payable$128 $105 Accrued compensation and benefits563 486 Accrued royalties221 226 Deferred net revenue (other)112 94 Operating lease liabilities (See Note 12)63 67 Other accrued expenses396 297 Sales returns and price protection reserves81 84 Accounts payable, accrued, and other current liabilities$1,564 $1,359 Operating lease liabilities (See Note 12) Deferred net revenue (other) includes the deferral of licensing arrangements, subscription revenue, and other revenue for which revenue recognition criteria has not been met. --- ## Modified: March 31, 2026Effective Tax RateMarch 31, 2025Effective Tax Rate$293 24.8 %$484 30.2 % **Key changes:** - Reworded sentence: "Our effective tax rate for the fiscal year ended March 31, 2026 was 24.8 percent as compared to 30.2 percent in fiscal year 2025." - Removed sentence: "During the fiscal year ended March 31, 2024, we recognized a $92 million tax benefit to remeasure our Swiss deferred tax assets as a result of an increase in the Swiss statutory tax rate." - Removed sentence: "In addition, we recognized a lower period cost for U.S." - Removed sentence: "earnings, including a cumulative one-time benefit, due to R&D capitalization guidance issued by the U.S." - Removed sentence: "Treasury during the fiscal year." **Prior (2025):** Our effective tax rate for the fiscal year ended March 31, 2025 was 30.2 percent as compared to 19.9 percent in fiscal year 2024. During the fiscal year ended March 31, 2025, we recognized a $51 million tax charge to increase the valuation allowance on Swiss deferred tax assets as a result of various factors including our business operations, geographical income mix, and an increase in the Swiss interest rates. Excluding the effect of the change in valuation allowance, the effective tax rate for fiscal year 2025 would have been 27.0 percent. During the fiscal year ended March 31, 2024, we recognized a $92 million tax benefit to remeasure our Swiss deferred tax assets as a result of an increase in the Swiss statutory tax rate. In addition, we recognized a lower period cost for U.S. tax on our non-U.S. earnings, including a cumulative one-time benefit, due to R&D capitalization guidance issued by the U.S. Treasury during the fiscal year. Excluding the effects of these items, the effective tax rate for fiscal year 2024 would have been 26.7 percent. Our effective tax rates for future periods will continue to depend on a variety of factors, including changes in our business, such as acquisitions and intercompany transactions, our corporate structure, the geographic location of business functions or assets, the geographic mix of income, our agreements with tax authorities, applicable accounting rules, applicable tax laws and regulations, rulings and interpretations thereof, developments in tax audit and other matters, and variations in our annual pre-tax income or loss. We anticipate that the impact of excess tax benefits, tax deficiencies, and changes in valuation allowances may result in significant fluctuations to our effective tax rate in the future. **Current (2026):** Our effective tax rate for the fiscal year ended March 31, 2026 was 24.8 percent as compared to 30.2 percent in fiscal year 2025. During the fiscal year ended March 31, 2026, we recognized $24 million of tax benefit from higher excess stock-based compensation in various jurisdictions. Excluding the effect of the excess stock-based compensation, the effective tax rate for fiscal year 2026 would have been 26.9 percent. During the fiscal year ended March 31, 2025, we recognized a $51 million tax charge to increase the valuation allowance on Swiss deferred tax assets as a result of various factors including our business operations, geographical income mix, and an increase in the Swiss interest rates. Excluding the effect of the change in valuation allowance, the effective tax rate for fiscal year 2025 would have been 27.0 percent. Our effective tax rates for future periods will continue to depend on a variety of factors, including changes in our business, such as acquisitions and intercompany transactions, our corporate structure, the geographic location of business functions or assets, the geographic mix of income, our agreements with tax authorities, applicable accounting rules, applicable tax laws and regulations, rulings and interpretations thereof, developments in tax audit and other matters, and variations in our annual pre-tax income or loss. We anticipate that the impact of excess tax benefits and changes in valuation allowances may result in significant fluctuations to our effective tax rate in the future. --- ## Modified: Interest Expense **Key changes:** - Reworded sentence: "The following table summarizes our interest expense recognized for fiscal years 2026, 2025, and 2024 that is included in interest and other income (expense), net on our Consolidated Statements of Operations (in millions): Year Ended March 31,202620252024Amortization of debt issuance costs$(2)$(2)$(2)Coupon interest expense(51)(55)(55)Other interest expense - (1)(1)Total interest expense$(53)$(58)$(58) 65 65 65 Table of Contents Table of Contents" **Prior (2025):** The following table summarizes our interest expense recognized for fiscal years 2025, 2024, and 2023 that is included in interest and other income (expense), net on our Consolidated Statements of Operations (in millions): Year Ended March 31,202520242023Amortization of debt discount$ - $ - $(1)Amortization of debt issuance costs(2)(2)(2)Coupon interest expense(55)(55)(55)Other interest expense(1)(1) - Total interest expense$(58)$(58)$(58) 63 63 63 Table of Contents Table of Contents **Current (2026):** The following table summarizes our interest expense recognized for fiscal years 2026, 2025, and 2024 that is included in interest and other income (expense), net on our Consolidated Statements of Operations (in millions): Year Ended March 31,202620252024Amortization of debt issuance costs$(2)$(2)$(2)Coupon interest expense(51)(55)(55)Other interest expense - (1)(1)Total interest expense$(53)$(58)$(58) 65 65 65 Table of Contents Table of Contents --- ## Modified: As of March 31, 2025 **Key changes:** - Reworded sentence: "Amortization of intangibles, including impairments, for the fiscal years ended March 31, 2026, 2025, and 2024 are classified in the Consolidated Statements of Operations as follows (in millions): Year Ended March 31, 202620252024Cost of revenue$37 $40 $76 Operating expenses66 67 142 Total$103 $107 $218 During fiscal years 2026 and 2025, we did not recognize any material impairment charges for acquisition-related intangible assets." - Removed sentence: "During fiscal year 2023, we recorded impairment charges of $106 million for acquisition-related intangible assets, of which $66 million was recorded within restructuring, $28 million was recorded within operating expenses, and $12 million was recorded within cost of revenue." - Reworded sentence: "As of March 31, 2026 and 2025, the weighted-average remaining useful life for acquisition-related intangible assets was approximately 2.3 years and 3.2 years, respectively." **Prior (2025):** The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2025 and 2024 (in millions): As of March 31, 2025As of March 31, 2024 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$46 $46 $231 $231 Due 1 year through 5 years63 63 126 126 Due after 5 years3 3 5 5 Short-term investments$112 $112 $362 $362 **Current (2026):** The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2026 and 2025 (in millions): As of March 31, 2026As of March 31, 2025 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$70 $70 $46 $46 Due 1 year through 5 years45 45 63 63 Due after 5 years1 1 3 3 Short-term investments$116 $116 $112 $112 --- ## Modified: Development, Sports Organizations, and Other Content Licenses: Payments and Commitments **Key changes:** - Reworded sentence: "The following table summarizes our minimum contractual obligations as of March 31, 2026 (in millions): Fiscal Years Ending March 31,Total20272028202920302031ThereafterUnrecognized commitmentsDeveloper/licensor commitments$2,058 $340 $474 $430 $415 $361 $38 Marketing commitments1,239 304 282 230 196 216 11 Senior Notes interest618 32 36 36 36 36 442 Operating lease imputed interest65 15 12 10 8 7 13 Operating leases not yet commenced34 2 4 5 5 5 13 Other purchase obligations376 101 121 97 39 14 4 Total unrecognized commitments4,390 794 929 808 699 639 521 Recognized commitmentsSenior Notes principal and interest1,505 5 - - - 750 750 Operating leases369 61 59 42 29 38 140 Total recognized commitments1,874 66 59 42 29 788 890 Total Commitments$6,264 $860 $988 $850 $728 $1,427 $1,411 The unrecognized amounts represented in the table above reflect our minimum cash obligations for the respective fiscal years, but do not necessarily represent the periods in which they will be recognized and expensed in our Consolidated Financial Statements." **Prior (2025):** The products we produce in our studios are designed and created by our employee designers, artists, software programmers and by non-employee software developers ("independent artists" or "third-party developers"). We typically advance development funds to the independent artists and third-party developers during development of our games, usually in installment payments made upon the completion of specified development milestones. Contractually, these payments are generally considered advances against subsequent royalties on the sales of the products. These terms are set forth in written agreements entered into with the independent artists and third-party developers. In addition, we have certain sports organizations and other content license contracts that contain minimum guarantee payments and marketing commitments to promote the games we publish that may not be dependent on any deliverables. These developer and content license commitments represent the sum of the cash payments for flat fees, minimum guaranteed payments, and service payments. The majority of these commitments are conditional upon performance by the counterparty. These payments and any related marketing and development commitments are included in the table below. The following table summarizes our minimum contractual obligations as of March 31, 2025 (in millions): Fiscal Years Ending March 31,Total20262027202820292030ThereafterUnrecognized commitmentsDeveloper/licensor commitments$1,509 $353 $404 $205 $189 $186 $172 Marketing commitments1,248 298 315 223 133 154 125 Senior Notes interest676 54 36 36 36 36 478 Operating lease imputed interest49 12 9 6 6 5 11 Operating leases not yet commenced17 - 1 2 2 2 10 Other purchase obligations293 166 80 30 12 5 - Total unrecognized commitments3,792 883 845 502 378 388 796 Recognized commitmentsSenior Notes principal and interest1,906 406 - - - - 1,500 Operating leases334 65 58 46 29 24 112 Transition Tax and other taxes7 7 - - - - - Total recognized commitments2,247 478 58 46 29 24 1,612 Total Commitments$6,039 $1,361 $903 $548 $407 $412 $2,408 The unrecognized amounts represented in the table above reflect our minimum cash obligations for the respective fiscal years, but do not necessarily represent the periods in which they will be recognized and expensed in our Consolidated Financial Statements. In addition, the amounts in the table above are presented based on the dates the amounts are contractually due as of March 31, 2025; however, certain payment obligations may be accelerated depending on the performance of our operating results. In addition to the amounts included in the table above, in our Consolidated Balance Sheets as of March 31, 2025, we had a net liability for unrecognized tax benefits and an accrual for the payment of related interest totaling $617 million, of which we are unable to make a reasonably reliable estimate of when cash settlement with a taxing authority will occur. **Current (2026):** The products we produce in our studios are designed and created by our employee designers, artists, software programmers and by non-employee software developers ("independent artists" or "third-party developers"). We typically advance development funds to the independent artists and third-party developers during development of our games, usually in installment payments made upon the completion of specified development milestones. Contractually, these payments are generally considered advances against subsequent royalties on the sales of the products. These terms are set forth in written agreements entered into with the independent artists and third-party developers. In addition, we have certain sports organizations and other content license contracts that contain minimum guarantee payments and marketing commitments to promote the games we publish that may not be dependent on any deliverables. These developer and content license commitments represent the sum of the cash payments for flat fees, minimum guaranteed payments, and service payments. The majority of these commitments are conditional upon performance by the counterparty. These payments and any related marketing and development commitments are included in the table below. The following table summarizes our minimum contractual obligations as of March 31, 2026 (in millions): Fiscal Years Ending March 31,Total20272028202920302031ThereafterUnrecognized commitmentsDeveloper/licensor commitments$2,058 $340 $474 $430 $415 $361 $38 Marketing commitments1,239 304 282 230 196 216 11 Senior Notes interest618 32 36 36 36 36 442 Operating lease imputed interest65 15 12 10 8 7 13 Operating leases not yet commenced34 2 4 5 5 5 13 Other purchase obligations376 101 121 97 39 14 4 Total unrecognized commitments4,390 794 929 808 699 639 521 Recognized commitmentsSenior Notes principal and interest1,505 5 - - - 750 750 Operating leases369 61 59 42 29 38 140 Total recognized commitments1,874 66 59 42 29 788 890 Total Commitments$6,264 $860 $988 $850 $728 $1,427 $1,411 The unrecognized amounts represented in the table above reflect our minimum cash obligations for the respective fiscal years, but do not necessarily represent the periods in which they will be recognized and expensed in our Consolidated Financial Statements. In addition, the amounts in the table above are presented based on the dates the amounts are contractually due as of March 31, 2026; however, certain payment obligations may be accelerated depending on the performance of our operating results. In addition to the amounts included in the table above, in our Consolidated Balance Sheets as of March 31, 2026, we had a net liability for unrecognized tax benefits and related interest totaling $654 million. While it is reasonably possible that a material reduction of unrecognized tax benefits may occur within the next 12 months, the actual amount could vary significantly depending on the ultimate timing and nature of any settlements and tax interpretations. --- ## Modified: Assets and Liabilities Measured at Fair Value on a Recurring Basis **Key changes:** - Reworded sentence: "As of March 31, 2026 and 2025, our assets and liabilities that were measured and recorded at fair value on a recurring basis were as follows (in millions): Fair Value Measurements at Reporting Date Using As of March 31, 2026Quoted Prices inActive Markets for IdenticalFinancial InstrumentsSignificantOtherObservableInputsSignificantUnobservableInputs (Level 1)(Level 2)(Level 3)Balance Sheet ClassificationAssetsBank and time deposits$33 $33 $ - $ - Cash equivalentsMoney market funds502 502 - - Cash equivalentsAvailable-for-sale securities:Corporate bonds52 - 52 - Short-term investmentsU.S." **Prior (2025):** As of March 31, 2025 and 2024, our assets and liabilities that were measured and recorded at fair value on a recurring basis were as follows (in millions): Fair Value Measurements at Reporting Date Using As of March 31, 2025Quoted Prices inActive Markets for IdenticalFinancial InstrumentsSignificantOtherObservableInputsSignificantUnobservableInputs (Level 1)(Level 2)(Level 3)Balance Sheet ClassificationAssetsBank and time deposits$58 $58 $ - $ - Cash equivalentsMoney market funds904 904 - - Cash equivalentsAvailable-for-sale securities:Corporate bonds46 - 46 - Short-term investmentsU.S. Treasury securities12 12 - - Short-term investmentsForeign government securities4 - 4 - Short-term investmentsAsset-backed securities50 - 50 - Short-term investmentsForeign currency derivatives28 - 28 - Other current assets and other assetsDeferred compensation plan assets (a)36 36 - - Other assetsTotal assets at fair value$1,138 $1,010 $128 $ - LiabilitiesForeign currency derivatives$26 $ - $26 $ - Accounts payable, accrued, and other current liabilities and other liabilitiesDeferred compensation plan liabilities (a)36 36 - - Other liabilitiesTotal liabilities at fair value$62 $36 $26 $ - As of **Current (2026):** As of March 31, 2026 and 2025, our assets and liabilities that were measured and recorded at fair value on a recurring basis were as follows (in millions): Fair Value Measurements at Reporting Date Using As of March 31, 2026Quoted Prices inActive Markets for IdenticalFinancial InstrumentsSignificantOtherObservableInputsSignificantUnobservableInputs (Level 1)(Level 2)(Level 3)Balance Sheet ClassificationAssetsBank and time deposits$33 $33 $ - $ - Cash equivalentsMoney market funds502 502 - - Cash equivalentsAvailable-for-sale securities:Corporate bonds52 - 52 - Short-term investmentsU.S. Treasury securities33 33 - - Short-term investmentsU.S. agency securities2 - 2 - Short-term investmentsForeign government securities5 - 5 - Short-term investmentsAsset-backed securities24 - 24 - Short-term investmentsForeign currency derivatives35 - 35 - Other current assets and other assetsDeferred compensation plan assets (a)46 46 - - Other assetsTotal assets at fair value$732 $614 $118 $ - LiabilitiesForeign currency derivatives$25 $ - $25 $ - Accounts payable, accrued, and other current liabilities and other liabilitiesDeferred compensation plan liabilities (a)46 46 - - Other liabilitiesTotal liabilities at fair value$71 $46 $25 $ - As of --- ## Modified: Deferred net revenue **Key changes:** - Reworded sentence: "Deferred net revenue as of March 31, 2026 and 2025, consisted of (in millions):As of March 31,20262025Deferred net revenue (online-enabled games)$2,233 $1,700 Deferred net revenue (other)112 94 Deferred net revenue (noncurrent)70 72 Total deferred net revenue$2,415 $1,866 During the fiscal years ended March 31, 2026 and 2025, we recognized $1,775 million and $1,875 million of revenue, respectively, that were included in the deferred net revenue balance at the beginning of the period." **Prior (2025):** Deferred net revenue as of March 31, 2025 and 2024, consisted of (in millions):As of March 31,20252024Deferred net revenue (online-enabled games)$1,700 $1,814 Deferred net revenue (other)94 59 Deferred net revenue (noncurrent)72 85 Total deferred net revenue$1,866 $1,958 During the fiscal years ended March 31, 2025 and 2024, we recognized $1,875 million and $1,987 million of revenue, respectively, that were included in the deferred net revenue balance at the beginning of the period. 57 57 57 Table of Contents Table of Contents **Current (2026):** Deferred net revenue as of March 31, 2026 and 2025, consisted of (in millions):As of March 31,20262025Deferred net revenue (online-enabled games)$2,233 $1,700 Deferred net revenue (other)112 94 Deferred net revenue (noncurrent)70 72 Total deferred net revenue$2,415 $1,866 During the fiscal years ended March 31, 2026 and 2025, we recognized $1,775 million and $1,875 million of revenue, respectively, that were included in the deferred net revenue balance at the beginning of the period. 58 58 58 Table of Contents Table of Contents --- ## Modified: Index to Consolidated Financial Statements **Key changes:** - Reworded sentence: "and Subsidiaries:Consolidated Balance Sheets as of March 31, 2026 and 202535Consolidated Statements of Operations for the Years Ended March 31, 2026, 2025, and 202436Consolidated Statements of Comprehensive Income for the Years Ended March 31, 2026, 2025, and 202437Consolidated Statements of Stockholders' Equity for the Years Ended March 31, 2026, 2025, and 202438Consolidated Statements of Cash Flows for the Years Ended March 31, 2026, 2025, and 202439Notes to Consolidated Financial Statements40Report of Independent Registered Public Accounting Firm (KPMG LLP, Santa Clara, CA, Auditor Firm ID: 185)80 Consolidated Balance Sheets as of March 31, 2026 and 2025 35 Consolidated Statements of Operations for the Years Ended March 31, 2026, 2025, and 2024 36 Consolidated Statements of Comprehensive Income for the Years Ended March 31, 2026, 2025, and 2024 37 Consolidated Statements of Stockholders' Equity for the Years Ended March 31, 2026, 2025, and 2024 38 Consolidated Statements of Cash Flows for the Years Ended March 31, 2026, 2025, and 2024 39 Notes to Consolidated Financial Statements 40 Report of Independent Registered Public Accounting Firm (KPMG LLP, Santa Clara, CA, Auditor Firm ID: 185) 80 34 34 34 Table of Contents Table of Contents" **Prior (2025):** PageConsolidated Financial Statements of Electronic Arts Inc. and Subsidiaries:Consolidated Balance Sheets as of March 31, 2025 and 202434Consolidated Statements of Operations for the Years Ended March 31, 2025, 2024, and 202335Consolidated Statements of Comprehensive Income for the Years Ended March 31, 2025, 2024, and 202336Consolidated Statements of Stockholders' Equity for the Years Ended March 31, 2025, 2024, and 202337Consolidated Statements of Cash Flows for the Years Ended March 31, 2025, 2024, and 202338Notes to Consolidated Financial Statements39Report of Independent Registered Public Accounting Firm (KPMG LLP, Santa Clara, CA, Auditor Firm ID: 185)78 Consolidated Balance Sheets as of March 31, 2025 and 2024 34 Consolidated Statements of Operations for the Years Ended March 31, 2025, 2024, and 2023 35 Consolidated Statements of Comprehensive Income for the Years Ended March 31, 2025, 2024, and 2023 36 Consolidated Statements of Stockholders' Equity for the Years Ended March 31, 2025, 2024, and 2023 37 Consolidated Statements of Cash Flows for the Years Ended March 31, 2025, 2024, and 2023 38 Notes to Consolidated Financial Statements 39 Report of Independent Registered Public Accounting Firm (KPMG LLP, Santa Clara, CA, Auditor Firm ID: 185) 78 33 33 33 Table of Contents Table of Contents **Current (2026):** PageConsolidated Financial Statements of Electronic Arts Inc. and Subsidiaries:Consolidated Balance Sheets as of March 31, 2026 and 202535Consolidated Statements of Operations for the Years Ended March 31, 2026, 2025, and 202436Consolidated Statements of Comprehensive Income for the Years Ended March 31, 2026, 2025, and 202437Consolidated Statements of Stockholders' Equity for the Years Ended March 31, 2026, 2025, and 202438Consolidated Statements of Cash Flows for the Years Ended March 31, 2026, 2025, and 202439Notes to Consolidated Financial Statements40Report of Independent Registered Public Accounting Firm (KPMG LLP, Santa Clara, CA, Auditor Firm ID: 185)80 Consolidated Balance Sheets as of March 31, 2026 and 2025 35 Consolidated Statements of Operations for the Years Ended March 31, 2026, 2025, and 2024 36 Consolidated Statements of Comprehensive Income for the Years Ended March 31, 2026, 2025, and 2024 37 Consolidated Statements of Stockholders' Equity for the Years Ended March 31, 2026, 2025, and 2024 38 Consolidated Statements of Cash Flows for the Years Ended March 31, 2026, 2025, and 2024 39 Notes to Consolidated Financial Statements 40 Report of Independent Registered Public Accounting Firm (KPMG LLP, Santa Clara, CA, Auditor Firm ID: 185) 80 34 34 34 Table of Contents Table of Contents --- ## Modified: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME **Key changes:** - Reworded sentence: "Year Ended March 31,(In millions)202620252024Net income$887 $1,121 $1,273 Other comprehensive income (loss), net of tax:Net gains (losses) on available-for-sale securities - - 1 Net gains (losses) on derivative instruments(23)1 (3)Foreign currency translation adjustments8 (16)(3)Total other comprehensive income (loss), net of tax(15)(15)(5)Total comprehensive income$872 $1,106 $1,268 See accompanying Notes to Consolidated Financial Statements." **Prior (2025):** Year Ended March 31,(In millions)202520242023Net income$1,121 $1,273 $802 Other comprehensive income (loss), net of tax:Net gains (losses) on available-for-sale securities - 1 2 Net gains (losses) on derivative instruments1 (3)(34)Foreign currency translation adjustments(16)(3)(50)Total other comprehensive income (loss), net of tax(15)(5)(82)Total comprehensive income$1,106 $1,268 $720 See accompanying Notes to Consolidated Financial Statements. 36 36 36 Table of Contents Table of Contents **Current (2026):** Year Ended March 31,(In millions)202620252024Net income$887 $1,121 $1,273 Other comprehensive income (loss), net of tax:Net gains (losses) on available-for-sale securities - - 1 Net gains (losses) on derivative instruments(23)1 (3)Foreign currency translation adjustments8 (16)(3)Total other comprehensive income (loss), net of tax(15)(15)(5)Total comprehensive income$872 $1,106 $1,268 See accompanying Notes to Consolidated Financial Statements. 37 37 37 Table of Contents Table of Contents --- ## Modified: Property and Equipment, Net **Key changes:** - Reworded sentence: "Property and equipment, net, as of March 31, 2026 and 2025 consisted of (in millions): As of March 31, 20262025Computer, equipment and software$1,117 $1,033 Buildings393 379 Leasehold improvements237 229 Equipment, furniture and fixtures, and other119 109 Land66 66 Construction in progress38 21 1,970 1,837 Less: accumulated depreciation(1,357)(1,251)Property and equipment, net$613 $586 Depreciation expense associated with property and equipment was $216 million, $204 million and $196 million for the fiscal years ended March 31, 2026, 2025, and 2024, respectively." **Prior (2025):** Property and equipment, net, are stated at cost. Depreciation is calculated using the straight-line method over the following useful lives: Buildings 20 to 25 yearsComputer equipment and software 2 to 6 yearsEquipment, furniture and fixtures, and other 3 to 5 yearsLeasehold improvements Lesser of the lease term or the estimated useful lives of the improvements, ranging from 1 to 14 years 20 to 25 years 2 to 6 years 3 to 5 years Lesser of the lease term or the estimated useful lives of the improvements, ranging from 1 to 14 years We capitalize costs associated with internal-use software development once a project has reached the application development stage. Such capitalized costs include external direct costs utilized in developing or obtaining the software, and payroll and payroll-related expenses for employees who are directly associated with the development of the software. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. Once internal-use software is ready for its intended use, the assets are depreciated on a straight-line basis over each asset's estimated useful life, which is generally three years. We also capitalize costs associated with the purchase of possessable internal-use software licenses in the period we obtain control of the licenses. The net book value of capitalized costs associated with internal-use software was $105 million and $93 million as of March 31, 2025 and 2024, respectively. 41 41 41 Table of Contents Table of Contents **Current (2026):** Property and equipment, net, are stated at cost. Depreciation is calculated using the straight-line method over the following useful lives: Buildings 20 to 25 yearsComputer equipment and software 2 to 6 yearsEquipment, furniture and fixtures, and other 3 to 5 yearsLeasehold improvements Lesser of the lease term or the estimated useful lives of the improvements, ranging from 1 to 14 years 20 to 25 years 2 to 6 years 3 to 5 years Lesser of the lease term or the estimated useful lives of the improvements, ranging from 1 to 14 years We capitalize costs associated with internal-use software development once a project has reached the application development stage. Such capitalized costs include external direct costs utilized in developing or obtaining the software, and payroll and payroll-related expenses for personnel who are directly associated with the development of the software. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. Once internal-use software is ready for its intended use, the assets are depreciated on a straight-line basis over each asset's estimated useful life, which is generally three years. We also capitalize costs associated with the purchase of possessable internal-use software licenses in the period we obtain control of the licenses. The net book value of capitalized costs associated with internal-use software was $135 million and $105 million as of March 31, 2026 and 2025, respectively. 43 43 43 Table of Contents Table of Contents --- ## Modified: As of March 31, 2025 **Key changes:** - Reworded sentence: "The effect of foreign currency forward contracts not designated as hedging instruments in our Consolidated Statements of Operations for the fiscal years ended March 31, 2026, 2025, and 2024, was as follows (in millions): Year Ended March 31, 202620252024Interest and other income (expense), netTotal amounts presented in our Consolidated Statements of Operations in which the effects of balance sheet hedges are recorded$18 $85 $71 Gains (losses) on foreign currency forward contracts not designated as hedging instruments$(10)$45 $12 53 53 53 Table of Contents Table of Contents" **Prior (2025):** The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2025 and 2024 (in millions): As of March 31, 2025As of March 31, 2024 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$46 $46 $231 $231 Due 1 year through 5 years63 63 126 126 Due after 5 years3 3 5 5 Short-term investments$112 $112 $362 $362 **Current (2026):** The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2026 and 2025 (in millions): As of March 31, 2026As of March 31, 2025 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$70 $70 $46 $46 Due 1 year through 5 years45 45 63 63 Due after 5 years1 1 3 3 Short-term investments$116 $116 $112 $112 --- ## Modified: Changes in Cash Flow **Key changes:** - Reworded sentence: "Net cash provided by operating activities increased by $474 million during fiscal year 2026, as compared to fiscal year 2025, primarily driven by higher cash collections from sales and lower cash payments for income taxes, partially offset by lower cash inflows from hedging activities, higher personnel-related payments, and higher royalty, marketing and advertising payments." - Reworded sentence: "Net cash used in investing activities increased by $313 million during fiscal year 2026, as compared to fiscal year 2025, primarily driven by a $566 million decrease in proceeds from maturities and sales of short-term investments, partially offset by $279 million of reduced purchases of short-term and other investments." - Reworded sentence: "Net cash used in financing activities decreased by $1,295 million during fiscal year 2026, as compared to fiscal year 2025, primarily driven by a $1,739 million decrease in cash paid for common stock repurchases and related excise taxes, partially offset by a $400 million repayment of senior notes, and a $57 million increase in cash paid to taxing authorities for withholding taxes related to stock-based compensation." **Prior (2025):** Operating Activities. Net cash provided by operating activities decreased by $236 million during fiscal year 2025, as compared to fiscal year 2024, primarily driven by lower cash collections from sales and higher cash payments for income taxes, partially offset by lower royalty, marketing, and advertising payments. Investing Activities. Net cash provided by investing activities increased by $244 million during fiscal year 2025, as compared to fiscal year 2024, primarily driven by a $203 million decrease in the purchase of short-term investments and a $63 million increase in proceeds from maturities and sales of short-term investments, partially offset by a $22 million increase in capital expenditures. Financing Activities. Net cash used in financing activities increased by $1,239 million during fiscal year 2025, as compared to fiscal year 2024, primarily due to a $1,208 million increase in common stock repurchases and excise tax payments, and a $38 million increase in cash paid to taxing authorities in connection with withholding taxes for stock-based compensation. **Current (2026):** Operating Activities. Net cash provided by operating activities increased by $474 million during fiscal year 2026, as compared to fiscal year 2025, primarily driven by higher cash collections from sales and lower cash payments for income taxes, partially offset by lower cash inflows from hedging activities, higher personnel-related payments, and higher royalty, marketing and advertising payments. Investing Activities. Net cash used in investing activities increased by $313 million during fiscal year 2026, as compared to fiscal year 2025, primarily driven by a $566 million decrease in proceeds from maturities and sales of short-term investments, partially offset by $279 million of reduced purchases of short-term and other investments. Financing Activities. Net cash used in financing activities decreased by $1,295 million during fiscal year 2026, as compared to fiscal year 2025, primarily driven by a $1,739 million decrease in cash paid for common stock repurchases and related excise taxes, partially offset by a $400 million repayment of senior notes, and a $57 million increase in cash paid to taxing authorities for withholding taxes related to stock-based compensation. --- ## Modified: Stock Repurchase Program **Key changes:** - Removed sentence: "In November 2020, our Board of Directors authorized a program to repurchase up to $2.6 billion of our common stock." - Removed sentence: "We completed repurchases under the November 2020 program in October 2022." - Reworded sentence: "73 73 73 Table of Contents Table of Contents In May 2024, the Company's Audit Committee, upon delegation from the Company's Board of Directors, authorized a program to repurchase up to $5.0 billion of our common stock." - Reworded sentence: "During the second quarter of fiscal year 2026, we suspended repurchase activity under this program in contemplation of the Merger detailed in Note 1 - Description of Business and Basis of Presentation." **Prior (2025):** In November 2020, our Board of Directors authorized a program to repurchase up to $2.6 billion of our common stock. We completed repurchases under the November 2020 program in October 2022. In August 2022, our Board of Directors authorized a program to repurchase up to $2.6 billion of our common stock. This program was terminated on May 8, 2024. 71 71 71 Table of Contents Table of Contents In May 2024, the Company's Audit Committee, upon delegation from the Company's Board of Directors, authorized a new program to repurchase up to $5.0 billion of our common stock. This program superseded and replaced the August 2022 program and expires on May 9, 2027. Under this program, we may purchase stock in the open market or through privately negotiated transactions in accordance with applicable securities laws, including pursuant to pre-arranged stock trading plans. The timing and actual amount of the stock repurchases will depend on several factors including price, capital availability, regulatory requirements, alternative investment opportunities and other market conditions. We are not obligated to repurchase a specific number of shares of our common stock under this program and it may be modified, suspended or discontinued at any time. We are actively repurchasing shares under this program. In February 2025, we entered into an ASR Agreement with Goldman Sachs & Co. LLC., under which we purchased an aggregate of $1.0 billion of our common stock as part of the May 2024 repurchase program. Under the terms of the ASR Agreement, we received an aggregate delivery of 7.0 million shares of our common stock as of March 31, 2025, which were immediately retired. Final settlement of the ASR Agreement occurred on April 25, 2025 and we received an additional 0.4 million shares, for total repurchases of 7.4 million shares at an average price of $135.05. The total number of shares delivered and the average purchase price paid per share are determined upon final settlement based on the volume weighted average price over the term of the ASR, less an agreed upon discount. Based on our ability to settle the ASR Agreement in shares, the $1.0 billion prepayment under the ASR Agreement was classified as a reduction to additional paid-in capital and common stock within the Consolidated Statement of Stockholders' Equity. The following table summarizes total shares repurchased during fiscal years 2025, 2024, and 2023: November 2020 ProgramAugust 2022 ProgramMay 2024 ProgramTotal(In millions)SharesAmountSharesAmount(a)SharesAmount(a)SharesAmountFiscal Year 20235.1 $650 5.3 $645 - $ - 10.4 $1,295 Fiscal Year 2024 - $ - 10.0 $1,300 - $ - 10.0 $1,300 Fiscal Year 2025 - $ - 1.2 $152 16.4 $2,348 17.6 $2,500 (a)Amount excludes excise taxes. Accrued excise taxes are included in accrued and other current liabilities and additional paid-in capital on the Consolidated Balance Sheets. Amount(a) Amount(a) Fiscal Year 2023 Fiscal Year 2024 Fiscal Year 2025 (a)Amount excludes excise taxes. Accrued excise taxes are included in accrued and other current liabilities and additional paid-in capital on the Consolidated Balance Sheets. 72 72 72 Table of Contents Table of Contents **Current (2026):** In August 2022, our Board of Directors authorized a program to repurchase up to $2.6 billion of our common stock. This program was terminated on May 8, 2024. 73 73 73 Table of Contents Table of Contents In May 2024, the Company's Audit Committee, upon delegation from the Company's Board of Directors, authorized a program to repurchase up to $5.0 billion of our common stock. This program superseded and replaced the August 2022 program and expires on May 9, 2027. Under this program, we may purchase stock in the open market or through privately negotiated transactions in accordance with applicable securities laws, including pursuant to pre-arranged stock trading plans. The timing and actual amount of the stock repurchases will depend on several factors including price, capital availability, regulatory requirements, alternative investment opportunities and other market conditions. We are not obligated to repurchase a specific number of shares of our common stock under this program and it may be modified, suspended or discontinued at any time. During the second quarter of fiscal year 2026, we suspended repurchase activity under this program in contemplation of the Merger detailed in Note 1 - Description of Business and Basis of Presentation. The following table summarizes total shares repurchased during fiscal years 2026, 2025, and 2024: August 2022 ProgramMay 2024 ProgramTotal(In millions)SharesAmount(a)SharesAmount(a)SharesAmountFiscal Year 202410.0 $1,300 - $ - 10.0 $1,300 Fiscal Year 20251.2 $152 16.4 2,348 17.6 $2,500 Fiscal Year 2026 - $ - 5.3 $750 5.3 $750 (a)Amount excludes excise taxes. Accrued excise taxes are included in accounts payable, accrued, and other current liabilities and additional paid-in capital on the Consolidated Balance Sheets. Amount(a) Amount(a) Fiscal Year 2024 Fiscal Year 2025 Fiscal Year 2026 (a)Amount excludes excise taxes. Accrued excise taxes are included in accounts payable, accrued, and other current liabilities and additional paid-in capital on the Consolidated Balance Sheets. 74 74 74 Table of Contents Table of Contents --- ## Modified: ELECTRONIC ARTS INC. AND SUBSIDIARIES **Key changes:** - Reworded sentence: "CONSOLIDATED STATEMENTS OF CASH FLOWSYear Ended March 31,(In millions)202620252024OPERATING ACTIVITIESNet income$887 $1,121 $1,273 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation, amortization, accretion and impairment323 356 404 Stock-based compensation656 642 584 Change in assets and liabilities:Receivables, net46 (115)119 Other assets(85)40 148 Accounts payable, accrued, and other liabilities206 190 (208)Deferred income taxes, net(13)(41)82 Deferred net revenue (online-enabled games)533 (114)(87)Net cash provided by operating activities2,553 2,079 2,315 INVESTING ACTIVITIESCapital expenditures(230)(221)(199)Proceeds from maturities and sales of short-term investments129 695 632 Purchase of short-term and other investments(158)(437)(640)Acquisitions, net of cash acquired(17) - - Net cash provided by (used in) investing activities(276)37 (207)FINANCING ACTIVITIESPayment of senior notes(400) - - Proceeds from issuance of common stock83 78 77 Cash dividends paid(191)(199)(205)Cash paid to taxing authorities for shares withheld from employees(291)(234)(196)Common stock repurchases and excise taxes paid(769)(2,508)(1,300)Net cash used in financing activities(1,568)(2,863)(1,624)Effect of foreign exchange on cash and cash equivalents19 (17)(8)Increase (decrease) in cash and cash equivalents728 (764)476 Beginning cash and cash equivalents2,136 2,900 2,424 Ending cash and cash equivalents$2,864 $2,136 $2,900 Supplemental cash flow information:Cash paid during the year for income taxes paid, net of refunds received$201 $404 $300 Cash paid during the year for interest53 56 56 Non-cash investing activities:Change in accrued capital expenditures$4 $ - $25 See accompanying Notes to Consolidated Financial Statements." **Prior (2025):** CONSOLIDATED STATEMENTS OF CASH FLOWSYear Ended March 31,(In millions)202520242023OPERATING ACTIVITIESNet income$1,121 $1,273 $802 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation, amortization, accretion and impairment356 404 536 Stock-based compensation642 584 548 Change in assets and liabilities:Receivables, net(115)119 (34)Other assets40 148 (103)Accounts payable, accrued, and other liabilities190 (208)144 Deferred income taxes, net(41)82 (221)Deferred net revenue (online-enabled games)(114)(87)(122)Net cash provided by operating activities2,079 2,315 1,550 INVESTING ACTIVITIESCapital expenditures(221)(199)(207)Proceeds from maturities and sales of short-term investments695 632 395 Purchase of short-term investments(437)(640)(405)Net cash provided by (used in) investing activities37 (207)(217)FINANCING ACTIVITIESProceeds from issuance of common stock78 77 80 Cash dividends paid(199)(205)(210)Cash paid to taxing authorities for shares withheld from employees(234)(196)(175)Common stock repurchases and excise taxes paid(2,508)(1,300)(1,295)Net cash used in financing activities(2,863)(1,624)(1,600)Effect of foreign exchange on cash and cash equivalents(17)(8)(41)Increase (decrease) in cash and cash equivalents(764)476 (308)Beginning cash and cash equivalents2,900 2,424 2,732 Ending cash and cash equivalents$2,136 $2,900 $2,424 Supplemental cash flow information:Cash paid during the year for income taxes, net$404 $300 $583 Cash paid during the year for interest56 56 56 Non-cash investing activities:Change in accrued capital expenditures$ - $25 $(3) See accompanying Notes to Consolidated Financial Statements. 38 38 38 Table of Contents Table of Contents **Current (2026):** CONSOLIDATED STATEMENTS OF CASH FLOWSYear Ended March 31,(In millions)202620252024OPERATING ACTIVITIESNet income$887 $1,121 $1,273 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation, amortization, accretion and impairment323 356 404 Stock-based compensation656 642 584 Change in assets and liabilities:Receivables, net46 (115)119 Other assets(85)40 148 Accounts payable, accrued, and other liabilities206 190 (208)Deferred income taxes, net(13)(41)82 Deferred net revenue (online-enabled games)533 (114)(87)Net cash provided by operating activities2,553 2,079 2,315 INVESTING ACTIVITIESCapital expenditures(230)(221)(199)Proceeds from maturities and sales of short-term investments129 695 632 Purchase of short-term and other investments(158)(437)(640)Acquisitions, net of cash acquired(17) - - Net cash provided by (used in) investing activities(276)37 (207)FINANCING ACTIVITIESPayment of senior notes(400) - - Proceeds from issuance of common stock83 78 77 Cash dividends paid(191)(199)(205)Cash paid to taxing authorities for shares withheld from employees(291)(234)(196)Common stock repurchases and excise taxes paid(769)(2,508)(1,300)Net cash used in financing activities(1,568)(2,863)(1,624)Effect of foreign exchange on cash and cash equivalents19 (17)(8)Increase (decrease) in cash and cash equivalents728 (764)476 Beginning cash and cash equivalents2,136 2,900 2,424 Ending cash and cash equivalents$2,864 $2,136 $2,900 Supplemental cash flow information:Cash paid during the year for income taxes paid, net of refunds received$201 $404 $300 Cash paid during the year for interest53 56 56 Non-cash investing activities:Change in accrued capital expenditures$4 $ - $25 See accompanying Notes to Consolidated Financial Statements. 39 39 39 Table of Contents Table of Contents --- ## Modified: Net Revenue **Key changes:** - Reworded sentence: "Net revenue for fiscal year 2026 was $7,531 million, primarily driven by sales related to our global football, American football, and Battlefield franchises." **Prior (2025):** Net revenue consists of sales generated from (1) full games sold as digital downloads or as packaged goods and designed for play on game consoles and PCs, (2) live services which primarily includes sales of extra content for console, PC, and mobile games, (3) subscriptions that generally offer access to a selection of full games, in-game content, online services and other benefits, and (4) licensing our games to third parties to distribute and host our games and content. **Current (2026):** Net revenue consists of sales generated from (1) full games sold as digital downloads or as packaged goods and designed for play on game consoles and PCs, (2) live services which primarily includes sales of extra content for console, PC, and mobile games, (3) subscriptions that generally offer access to a selection of full games, in-game content, online services and other benefits, and (4) licensing our games to third parties to distribute and host our games and content. --- ## Modified: Comparison of Fiscal Year 2025 to Fiscal Year 2024 **Key changes:** - Reworded sentence: "For the comparison of fiscal year 2025 to fiscal year 2024, refer to Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for our fiscal year ended March 31, 2025, filed with the SEC on May 13, 2025 under the subheading "Comparison of Fiscal Year 2025 to Fiscal Year 2024." 29 29 29 Table of Contents Table of Contents LIQUIDITY AND CAPITAL RESOURCES As of March 31,(In millions)20262025Increase/(Decrease)Cash and cash equivalents$2,864 $2,136 $728 Short-term investments116 112 4 Total$2,980 $2,248 $732 Percentage of total assets23 %18 % Year Ended March 31,(In millions)20262025ChangeNet cash provided by operating activities$2,553 $2,079 $474 Net cash provided by (used in) investing activities(276)37 (313)Net cash used in financing activities(1,568)(2,863)1,295 Effect of foreign exchange on cash and cash equivalents19 (17)36 Net increase (decrease) in cash and cash equivalents$728 $(764)$1,492 For the comparison of fiscal year 2025 to fiscal year 2024, refer to Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for our fiscal year ended March 31, 2025, filed with the SEC on May 13, 2025 under the subheading "Liquidity and Capital Resources."" **Prior (2025):** For the comparison of fiscal year 2024 to fiscal year 2023, refer to Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for our fiscal year ended March 31, 2024, filed with the SEC on May 22, 2024 under the subheading "Comparison of Fiscal Year 2024 to Fiscal Year 2023." 28 28 28 Table of Contents Table of Contents LIQUIDITY AND CAPITAL RESOURCES As of March 31,(In millions)20252024Increase/(Decrease)Cash and cash equivalents$2,136 $2,900 $(764)Short-term investments112 362 (250)Total$2,248 $3,262 $(1,014)Percentage of total assets18 %24 % Year Ended March 31,(In millions)20252024ChangeNet cash provided by operating activities$2,079 $2,315 $(236)Net cash provided by (used in) investing activities37 (207)244 Net cash used in financing activities(2,863)(1,624)(1,239)Effect of foreign exchange on cash and cash equivalents(17)(8)(9)Net increase (decrease) in cash and cash equivalents$(764)$476 $(1,240) For the comparison of fiscal year 2024 to fiscal year 2023, refer to Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for our fiscal year ended March 31, 2024, filed with the SEC on May 22, 2024 under the subheading "Liquidity and Capital Resources." **Current (2026):** For the comparison of fiscal year 2025 to fiscal year 2024, refer to Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for our fiscal year ended March 31, 2025, filed with the SEC on May 13, 2025 under the subheading "Comparison of Fiscal Year 2025 to Fiscal Year 2024." 29 29 29 Table of Contents Table of Contents LIQUIDITY AND CAPITAL RESOURCES As of March 31,(In millions)20262025Increase/(Decrease)Cash and cash equivalents$2,864 $2,136 $728 Short-term investments116 112 4 Total$2,980 $2,248 $732 Percentage of total assets23 %18 % Year Ended March 31,(In millions)20262025ChangeNet cash provided by operating activities$2,553 $2,079 $474 Net cash provided by (used in) investing activities(276)37 (313)Net cash used in financing activities(1,568)(2,863)1,295 Effect of foreign exchange on cash and cash equivalents19 (17)36 Net increase (decrease) in cash and cash equivalents$728 $(764)$1,492 For the comparison of fiscal year 2025 to fiscal year 2024, refer to Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for our fiscal year ended March 31, 2025, filed with the SEC on May 13, 2025 under the subheading "Liquidity and Capital Resources." --- ## Modified: (15) INTEREST AND OTHER INCOME (EXPENSE), NET **Key changes:** - Reworded sentence: "Interest and other income (expense), net, for the fiscal years ended March 31, 2026, 2025, and 2024 consisted of (in millions): Year Ended March 31, 202620252024Interest expense$(53)$(58)$(58)Interest income70 125 126 Net gain (loss) on foreign currency transactions13 (29)(10)Net gain (loss) on foreign currency forward contracts(10)45 12 Other income (expense), net(2)2 1 Interest and other income (expense), net$18 $85 $71 75 75 75 Table of Contents Table of Contents" **Prior (2025):** Interest and other income (expense), net, for the fiscal years ended March 31, 2025, 2024, and 2023 consisted of (in millions): Year Ended March 31, 202520242023Interest expense$(58)$(58)$(58)Interest income125 126 49 Net gain (loss) on foreign currency transactions(29)(10)31 Net gain (loss) on foreign currency forward contracts45 12 (29)Other income (expense), net2 1 1 Interest and other income (expense), net$85 $71 $(6) 73 73 73 Table of Contents Table of Contents **Current (2026):** Interest and other income (expense), net, for the fiscal years ended March 31, 2026, 2025, and 2024 consisted of (in millions): Year Ended March 31, 202620252024Interest expense$(53)$(58)$(58)Interest income70 125 126 Net gain (loss) on foreign currency transactions13 (29)(10)Net gain (loss) on foreign currency forward contracts(10)45 12 Other income (expense), net(2)2 1 Interest and other income (expense), net$18 $85 $71 75 75 75 Table of Contents Table of Contents --- ## Modified: March 31, 2026 **Key changes:** - Reworded sentence: "agency securities Foreign government securities Deferred compensation plan assets (a) Deferred compensation plan liabilities (a) 50 50 50 Table of Contents Table of Contents Fair Value Measurements at Reporting Date Using As ofMarch 31,2025Quoted Prices inActive Markets for IdenticalFinancial InstrumentsSignificantOtherObservableInputsSignificantUnobservableInputs (Level 1)(Level 2)(Level 3)Balance Sheet ClassificationAssetsBank and time deposits$58 $58 $ - $ - Cash equivalentsMoney market funds904 904 - - Cash equivalentsAvailable-for-sale securities:Corporate bonds46 - 46 - Short-term investmentsU.S." **Prior (2025):** Deferred compensation plan assets (a) Deferred compensation plan liabilities (a) 48 48 48 Table of Contents Table of Contents Fair Value Measurements at Reporting Date Using As ofMarch 31,2024Quoted Prices inActive Markets for IdenticalFinancial InstrumentsSignificantOtherObservableInputsSignificantUnobservableInputs (Level 1)(Level 2)(Level 3)Balance Sheet ClassificationAssetsBank and time deposits$58 $58 $ - $ - Cash equivalentsMoney market funds1,038 1,038 - - Cash equivalentsAvailable-for-sale securities:Corporate bonds130 - 130 - Short-term investmentsU.S. Treasury securities95 95 - - Short-term investmentsU.S. agency securities9 - 9 - Short-term investmentsCommercial paper74 - 74 - Short-term investments and cash equivalentsForeign government securities8 - 8 - Short-term investmentsAsset-backed securities41 - 41 - Short-term investmentsCertificates of deposit 13 - 13 - Short-term investmentsForeign currency derivatives29 - 29 - Other current assets and other assetsDeferred compensation plan assets (a)30 30 - - Other assetsTotal assets at fair value$1,525 $1,221 $304 $ - LiabilitiesForeign currency derivatives$20 $ - $20 $ - Accounts payable, accrued, and other current liabilities and other liabilitiesDeferred compensation plan liabilities (a)31 31 - - Other liabilitiesTotal liabilities at fair value$51 $31 $20 $ - Deferred compensation plan assets (a) Deferred compensation plan liabilities (a) (a)The Deferred Compensation Plan consists of various mutual funds. See Note 15 for additional information regarding our Deferred Compensation Plan. 49 49 49 Table of Contents Table of Contents **Current (2026):** U.S. agency securities Foreign government securities Deferred compensation plan assets (a) Deferred compensation plan liabilities (a) 50 50 50 Table of Contents Table of Contents Fair Value Measurements at Reporting Date Using As ofMarch 31,2025Quoted Prices inActive Markets for IdenticalFinancial InstrumentsSignificantOtherObservableInputsSignificantUnobservableInputs (Level 1)(Level 2)(Level 3)Balance Sheet ClassificationAssetsBank and time deposits$58 $58 $ - $ - Cash equivalentsMoney market funds904 904 - - Cash equivalentsAvailable-for-sale securities:Corporate bonds46 - 46 - Short-term investmentsU.S. Treasury securities12 12 - - Short-term investmentsForeign government securities4 - 4 - Short-term investmentsAsset-backed securities50 - 50 - Short-term investmentsForeign currency derivatives28 - 28 - Other current assets and other assetsDeferred compensation plan assets (a)36 36 - - Other assetsTotal assets at fair value$1,138 $1,010 $128 $ - LiabilitiesForeign currency derivatives$26 $ - $26 $ - Accounts payable, accrued, and other current liabilities and other liabilitiesDeferred compensation plan liabilities (a)36 36 - - Other liabilitiesTotal liabilities at fair value$62 $36 $26 $ - Deferred compensation plan assets (a) Deferred compensation plan liabilities (a) (a)The Deferred Compensation Plan consists of various mutual funds. See Note 14 for additional information regarding our Deferred Compensation Plan. 51 51 51 Table of Contents Table of Contents --- ## Modified: CONSOLIDATED BALANCE SHEETS **Key changes:** - Reworded sentence: "(In millions, except par value data)March 31, 2026March 31, 2025ASSETSCurrent assets:Cash and cash equivalents$2,864 $2,136 Short-term investments116 112 Receivables, net632 679 Other current assets361 349 Total current assets3,973 3,276 Property and equipment, net613 586 Goodwill5,388 5,376 Acquisition-related intangibles, net195 293 Deferred income taxes, net2,433 2,420 Other assets529 417 TOTAL ASSETS$13,131 $12,368 LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable, accrued, and other current liabilities$1,564 $1,359 Deferred net revenue (online-enabled games)2,233 1,700 Senior notes, current, net - 400 Total current liabilities3,797 3,459 Senior notes, net1,485 1,484 Income tax obligations604 594 Other liabilities481 445 Total liabilities6,367 5,982 Commitments and contingencies (See Note 13)Stockholders' equity:Preferred stock, $0.01 par value." - Reworded sentence: "1,000 shares authorized; 251 and 252 shares issued and outstanding, respectively3 3 Additional paid-in capital256 - Retained earnings6,607 6,470 Accumulated other comprehensive income (loss)(102)(87)Total stockholders' equity6,764 6,386 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$13,131 $12,368 Commitments and contingencies (See Note 13) Preferred stock, $0.01 par value." - Reworded sentence: "1,000 shares authorized; 251 and 252 shares issued and outstanding, respectively See accompanying Notes to Consolidated Financial Statements." **Prior (2025):** (In millions, except par value data)March 31, 2025March 31, 2024ASSETSCurrent assets:Cash and cash equivalents$2,136 $2,900 Short-term investments112 362 Receivables, net679 565 Other current assets349 420 Total current assets3,276 4,247 Property and equipment, net586 578 Goodwill5,376 5,379 Acquisition-related intangibles, net293 400 Deferred income taxes, net2,420 2,380 Other assets417 436 TOTAL ASSETS$12,368 $13,420 LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable, accrued, and other current liabilities$1,359 $1,276 Deferred net revenue (online-enabled games)1,700 1,814 Senior notes, current, net400 - Total current liabilities3,459 3,090 Senior notes, net1,484 1,882 Income tax obligations594 497 Other liabilities445 438 Total liabilities5,982 5,907 Commitments and contingencies (See Note 14)Stockholders' equity:Preferred stock, $0.01 par value. 10 shares authorized - - Common stock, $0.01 par value. 1,000 shares authorized; 252 and 266 shares issued and outstanding, respectively3 3 Additional paid-in capital - - Retained earnings6,470 7,582 Accumulated other comprehensive income (loss)(87)(72)Total stockholders' equity6,386 7,513 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$12,368 $13,420 Commitments and contingencies (See Note 14) Preferred stock, $0.01 par value. 10 shares authorized Common stock, $0.01 par value. 1,000 shares authorized; 252 and 266 shares issued and outstanding, respectively See accompanying Notes to Consolidated Financial Statements. 34 34 34 Table of Contents Table of Contents **Current (2026):** (In millions, except par value data)March 31, 2026March 31, 2025ASSETSCurrent assets:Cash and cash equivalents$2,864 $2,136 Short-term investments116 112 Receivables, net632 679 Other current assets361 349 Total current assets3,973 3,276 Property and equipment, net613 586 Goodwill5,388 5,376 Acquisition-related intangibles, net195 293 Deferred income taxes, net2,433 2,420 Other assets529 417 TOTAL ASSETS$13,131 $12,368 LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable, accrued, and other current liabilities$1,564 $1,359 Deferred net revenue (online-enabled games)2,233 1,700 Senior notes, current, net - 400 Total current liabilities3,797 3,459 Senior notes, net1,485 1,484 Income tax obligations604 594 Other liabilities481 445 Total liabilities6,367 5,982 Commitments and contingencies (See Note 13)Stockholders' equity:Preferred stock, $0.01 par value. 10 shares authorized - - Common stock, $0.01 par value. 1,000 shares authorized; 251 and 252 shares issued and outstanding, respectively3 3 Additional paid-in capital256 - Retained earnings6,607 6,470 Accumulated other comprehensive income (loss)(102)(87)Total stockholders' equity6,764 6,386 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$13,131 $12,368 Commitments and contingencies (See Note 13) Preferred stock, $0.01 par value. 10 shares authorized Common stock, $0.01 par value. 1,000 shares authorized; 251 and 252 shares issued and outstanding, respectively See accompanying Notes to Consolidated Financial Statements. 35 35 35 Table of Contents Table of Contents --- ## Modified: Recently Issued Accounting Standards **Key changes:** - Reworded sentence: "In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires additional, disaggregated disclosure about certain income statement line items." - Reworded sentence: "We are currently evaluating the timing of adoption and impact of this ASU on our disclosures within the Consolidated Financial Statements." **Prior (2025):** In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures. The amendments further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This ASU is effective for our annual report for fiscal year 2026, with early adoption permitted, and should be applied either prospectively or retrospectively. We are currently evaluating the impact of this ASU on our Consolidated Financial Statements and related disclosures. 39 39 39 Table of Contents Table of Contents In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires additional, disaggregated disclosure about certain income statement line items. This ASU is effective for our annual report for fiscal year 2028 and interim periods thereafter on a retrospective or prospective basis, with early adoption permitted. We are currently evaluating the timing of adoption and impact of this ASU on our Consolidated Financial Statements and related disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses 40 40 40 Table of Contents Table of Contents **Current (2026):** In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires additional, disaggregated disclosure about certain income statement line items. This ASU is effective for our annual report for fiscal year 2028 and interim periods thereafter on a retrospective or prospective basis, with early adoption permitted. We are currently evaluating the timing of adoption and impact of this ASU on our disclosures within the Consolidated Financial Statements. In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This amendment introduces a practical expedient for the application of the current expected credit loss ("CECL") model to current accounts receivable and contract assets. The amendment is effective beginning in the first quarter of fiscal year 2027 on a prospective basis, with early adoption permitted. We do not expect the adoption of this amendment to have a material impact on our Consolidated Financial Statements and related disclosures. In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Improvements to Accounting for Internal-Use Software, which eliminates references to "project stages" and clarifies the criteria for when internal-use software costs should be capitalized. This ASU is effective beginning in the first quarter of fiscal year 2029 on a prospective, modified-prospective, or retrospective basis, with early adoption permitted. We are currently evaluating the timing of adoption and the impact of this ASU on our Consolidated Financial Statements and related disclosures. In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815) - Hedge Accounting Improvements, which more closely aligns hedge accounting with the economics of an entity's risk management activities. The ASU is effective beginning in the first quarter of fiscal year 2028, on a prospective basis, with early adoption permitted. We do not expect the adoption of this ASU to have a material impact on our Consolidated Financial Statements and related disclosures. 41 41 41 Table of Contents Table of Contents In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270) - Narrow-Scope Improvements, which clarifies current interim disclosure requirements and provides additional required interim disclosure guidance. The ASU is effective beginning in the first quarter of fiscal year 2029, on a retrospective or prospective basis, with early adoption permitted. We are currently evaluating the timing of adoption and impact of this amendment on our disclosures within the Consolidated Financial Statements. 42 42 42 Table of Contents Table of Contents --- ## Modified: Short-Term Investments **Key changes:** - Reworded sentence: "Short-term investments consisted of the following as of March 31, 2026 and 2025 (in millions): As of March 31, 2026As of March 31, 2025 Cost orAmortizedCostGross UnrealizedFairValueCost orAmortizedCostGross UnrealizedFairValue GainsLossesGainsLossesCorporate bonds$52 $ - $ - $52 $46 $ - $ - $46 U.S." **Prior (2025):** Short-term investments consisted of the following as of March 31, 2025 and 2024 (in millions): As of March 31, 2025As of March 31, 2024 Cost orAmortizedCostGross UnrealizedFairValueCost orAmortizedCostGross UnrealizedFairValue GainsLossesGainsLossesCorporate bonds$46 $ - $ - $46 $130 $ - $ - $130 U.S. Treasury securities12 - - 12 95 - - 95 U.S. agency securities - - - - 9 - - 9 Commercial paper - - - - 66 - - 66 Foreign government securities4 - - 4 8 - - 8 Asset-backed securities50 - - 50 41 - - 41 Certificates of deposit - - - - 13 - - 13 Short-term investments$112 $ - $ - $112 $362 $ - $ - $362 **Current (2026):** Short-term investments consisted of the following as of March 31, 2026 and 2025 (in millions): As of March 31, 2026As of March 31, 2025 Cost orAmortizedCostGross UnrealizedFairValueCost orAmortizedCostGross UnrealizedFairValue GainsLossesGainsLossesCorporate bonds$52 $ - $ - $52 $46 $ - $ - $46 U.S. Treasury securities33 - - 33 12 - - 12 U.S. agency securities2 - - 2 - - - - Foreign government securities5 - - 5 4 - - 4 Asset-backed securities24 - - 24 50 - - 50 Short-term investments$116 $ - $ - $116 $112 $ - $ - $112 --- ## Modified: March 31, 2026 **Key changes:** - Reworded sentence: "The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2025 are as follows (in millions): As of March 31, 2024ActivityEffects of Foreign Currency TranslationAs of March 31, 2025Goodwill$5,747 $ - $(3)$5,744 Accumulated impairment(368) - - (368)Total$5,379 $ - $(3)$5,376 As of" **Prior (2025):** Deferred compensation plan assets (a) Deferred compensation plan liabilities (a) 48 48 48 Table of Contents Table of Contents Fair Value Measurements at Reporting Date Using As ofMarch 31,2024Quoted Prices inActive Markets for IdenticalFinancial InstrumentsSignificantOtherObservableInputsSignificantUnobservableInputs (Level 1)(Level 2)(Level 3)Balance Sheet ClassificationAssetsBank and time deposits$58 $58 $ - $ - Cash equivalentsMoney market funds1,038 1,038 - - Cash equivalentsAvailable-for-sale securities:Corporate bonds130 - 130 - Short-term investmentsU.S. Treasury securities95 95 - - Short-term investmentsU.S. agency securities9 - 9 - Short-term investmentsCommercial paper74 - 74 - Short-term investments and cash equivalentsForeign government securities8 - 8 - Short-term investmentsAsset-backed securities41 - 41 - Short-term investmentsCertificates of deposit 13 - 13 - Short-term investmentsForeign currency derivatives29 - 29 - Other current assets and other assetsDeferred compensation plan assets (a)30 30 - - Other assetsTotal assets at fair value$1,525 $1,221 $304 $ - LiabilitiesForeign currency derivatives$20 $ - $20 $ - Accounts payable, accrued, and other current liabilities and other liabilitiesDeferred compensation plan liabilities (a)31 31 - - Other liabilitiesTotal liabilities at fair value$51 $31 $20 $ - Deferred compensation plan assets (a) Deferred compensation plan liabilities (a) (a)The Deferred Compensation Plan consists of various mutual funds. See Note 15 for additional information regarding our Deferred Compensation Plan. 49 49 49 Table of Contents Table of Contents **Current (2026):** U.S. agency securities Foreign government securities Deferred compensation plan assets (a) Deferred compensation plan liabilities (a) 50 50 50 Table of Contents Table of Contents Fair Value Measurements at Reporting Date Using As ofMarch 31,2025Quoted Prices inActive Markets for IdenticalFinancial InstrumentsSignificantOtherObservableInputsSignificantUnobservableInputs (Level 1)(Level 2)(Level 3)Balance Sheet ClassificationAssetsBank and time deposits$58 $58 $ - $ - Cash equivalentsMoney market funds904 904 - - Cash equivalentsAvailable-for-sale securities:Corporate bonds46 - 46 - Short-term investmentsU.S. Treasury securities12 12 - - Short-term investmentsForeign government securities4 - 4 - Short-term investmentsAsset-backed securities50 - 50 - Short-term investmentsForeign currency derivatives28 - 28 - Other current assets and other assetsDeferred compensation plan assets (a)36 36 - - Other assetsTotal assets at fair value$1,138 $1,010 $128 $ - LiabilitiesForeign currency derivatives$26 $ - $26 $ - Accounts payable, accrued, and other current liabilities and other liabilitiesDeferred compensation plan liabilities (a)36 36 - - Other liabilitiesTotal liabilities at fair value$62 $36 $26 $ - Deferred compensation plan assets (a) Deferred compensation plan liabilities (a) (a)The Deferred Compensation Plan consists of various mutual funds. See Note 14 for additional information regarding our Deferred Compensation Plan. 51 51 51 Table of Contents Table of Contents --- ## Modified: As of March 31, 2025 **Key changes:** - Reworded sentence: "The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2026 and 2025 (in millions): As of March 31, 2026As of March 31, 2025 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$70 $70 $46 $46 Due 1 year through 5 years45 45 63 63 Due after 5 years1 1 3 3 Short-term investments$116 $116 $112 $112" **Prior (2025):** The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2025 and 2024 (in millions): As of March 31, 2025As of March 31, 2024 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$46 $46 $231 $231 Due 1 year through 5 years63 63 126 126 Due after 5 years3 3 5 5 Short-term investments$112 $112 $362 $362 **Current (2026):** The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2026 and 2025 (in millions): As of March 31, 2026As of March 31, 2025 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$70 $70 $46 $46 Due 1 year through 5 years45 45 63 63 Due after 5 years1 1 3 3 Short-term investments$116 $116 $112 $112 --- ## Modified: Recently Adopted Accounting Standards **Key changes:** - Reworded sentence: "In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures." **Prior (2025):** In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update expand annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. We adopted ASU 2023-07 in the fourth quarter of fiscal year 2025. The adoption did not have a material impact on our Consolidated Financial Statements. See Note 18 - Segment and Revenue Information to the Consolidated Financial Statements for further detail. **Current (2026):** In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures. The amendments further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. We adopted ASU 2023-09 prospectively in the fourth quarter of fiscal year 2026 and have provided the required disclosures in Note 10 - Income Taxes. --- ## Modified: March 31, 2025 **Key changes:** - Reworded sentence: "During the fiscal year ended March 31, 2026, we completed one acquisition that was not material to our Consolidated Financial Statements." **Prior (2025):** Acquisition-related intangibles consisted of the following (in millions): As of March 31, 2025As of March 31, 2024 GrossCarryingAmountAccumulatedAmortizationAcquisition-RelatedIntangibles, NetGrossCarryingAmountAccumulatedAmortizationAcquisition-RelatedIntangibles, NetDeveloped and core technology$933 $(790)$143 $1,025 $(821)$204 Trade names and trademarks501 (351)150 502 (306)196 Registered user base and other intangibles56 (56) - 56 (56) - Total$1,490 $(1,197)$293 $1,583 $(1,183)$400 **Current (2026):** During the fiscal year ended March 31, 2026, we completed one acquisition that was not material to our Consolidated Financial Statements. Acquisition-related intangibles consisted of the following (in millions): As of March 31, 2026As of March 31, 2025 GrossCarryingAmountAccumulatedAmortizationAcquisition-RelatedIntangibles, NetGrossCarryingAmountAccumulatedAmortizationAcquisition-RelatedIntangibles, NetDeveloped and core technology$938 $(848)$90 $933 $(790)$143 Trade names and trademarks501 (396)105 501 (351)150 Registered user base and other intangibles56 (56) - 56 (56) - Total$1,495 $(1,300)$195 $1,490 $(1,197)$293 --- ## Modified: Issuer Purchases of Equity Securities **Key changes:** - Reworded sentence: "During the second quarter of fiscal year 2026, we suspended repurchase activity under this program in contemplation of the Merger detailed in Note 1 - Description of Business and Basis of Presentation." **Prior (2025):** In May 2024, the Company's Audit Committee, upon delegation from the Company's Board of Directors, authorized a new program to repurchase up to $5.0 billion of our common stock. This program expires on May 9, 2027. Under this program, we may purchase stock in the open market or through privately negotiated transactions in accordance with applicable securities laws, including pursuant to pre-arranged stock trading plans. The timing and actual amount of the stock repurchases will depend on several factors including price, capital availability, regulatory requirements, alternative investment opportunities and other market conditions. We are not obligated to repurchase a specific number of shares of our common stock under this program and it may be modified, suspended or discontinued at any time. We are actively repurchasing shares under this program. In February 2025, we entered into an accelerated share repurchase agreement (the "ASR Agreement") with Goldman Sachs & Co. LLC., under which we purchased an aggregate of $1.0 billion of our common stock as part of the May 2024 repurchase program. Final settlement of the ASR Agreement occurred on April 25, 2025. Refer to Note 15 to our Consolidated Financial Statements for additional details on the ASR Agreement. The following table summarizes the number of shares repurchased in the fourth quarter of the fiscal year ended March 31, 2025:Fiscal MonthTotal Number of Shares PurchasedAverage Price Paid per ShareTotal Number of Shares Purchased as part of Publicly Announced ProgramsMaximum Dollar Value that May Still Be Purchased Under the Programs (in millions)December 29, 2024 - January 25, 2025723,537 $142.12 723,537 $3,925 January 26, 2025 - February 22, 2025Accelerated share repurchases(1)6,131,678 $ - 6,131,678 $2,925 Open market share repurchases930,914 $125.38 930,914 $2,808 February 23, 2025 - March 29, 2025Accelerated share repurchases(1)836,443 $ - 836,443 $2,808 Open market share repurchases1,130,049 $137.74 1,130,049 $2,652 9,752,621 9,752,621 (1)Subsequent to March 31, 2025, we settled the ASR Agreement, which resulted in total repurchases of 7.4 million shares of our common stock at an average price of $135.05. Accelerated share repurchases(1) Accelerated share repurchases(1) (1)Subsequent to March 31, 2025, we settled the ASR Agreement, which resulted in total repurchases of 7.4 million shares of our common stock at an average price of $135.05. 18 18 18 Table of Contents Table of Contents **Current (2026):** In May 2024, the Company's Audit Committee, upon delegation from the Company's Board of Directors, authorized a new program to repurchase up to $5.0 billion of our common stock. This program expires on May 9, 2027. Under this program, we may purchase stock in the open market or through privately negotiated transactions in accordance with applicable securities laws, including pursuant to pre-arranged stock trading plans. The timing and actual amount of the stock repurchases will depend on several factors including price, capital availability, regulatory requirements, alternative investment opportunities and other market conditions. We are not obligated to repurchase a specific number of shares of our common stock under this program and it may be modified, suspended or discontinued at any time. During the second quarter of fiscal year 2026, we suspended repurchase activity under this program in contemplation of the Merger detailed in Note 1 - Description of Business and Basis of Presentation. --- ## Modified: March 31,2026% of NetRevenueMarch 31,2025% of NetRevenue% ChangeChange as a % of Net Revenue$1,584 21 %$1,543 21 %3 % - % **Key changes:** - Reworded sentence: "Cost of revenue increased by $41 million during fiscal year 2026 as compared to fiscal year 2025." **Prior (2025):** Cost of revenue decreased by $167 million, and by 2 percent as a percentage of total net revenue, during fiscal year 2025 as compared to fiscal year 2024. The decrease was primarily due to a year-over-year decrease in product related and royalty costs associated with our EA SPORTS FC franchise, a decrease in platform and online hosting fees, and a decrease in acquisition-related intangible asset amortization and impairment, partially offset by a net increase in royalty costs due to the mix of sales from other royalty bearing titles. **Current (2026):** Cost of revenue increased by $41 million during fiscal year 2026 as compared to fiscal year 2025. The increase was primarily due to a net increase in royalty costs driven by the impacts from foreign exchange, and higher online hosting fees, primarily driven by the release of Battlefield 6. This increase was partially offset by a decrease in product-related costs primarily due to our global football and American football franchises, partially offset by Battlefield 6. --- ## Modified: CONSOLIDATED STATEMENTS OF OPERATIONS **Key changes:** - Reworded sentence: "Year Ended March 31,(In millions, except per share data)202620252024Net revenue$7,531 $7,463 $7,562 Cost of revenue1,584 1,543 1,710 Gross profit5,947 5,920 5,852 Operating expenses:Research and development2,828 2,569 2,420 Marketing and sales1,128 962 1,019 General and administrative763 745 691 Amortization and impairment of intangibles66 67 142 Restructuring - 57 62 Total operating expenses4,785 4,400 4,334 Operating income1,162 1,520 1,518 Interest and other income (expense), net18 85 71 Income before provision for income taxes1,180 1,605 1,589 Provision for income taxes293 484 316 Net income$887 $1,121 $1,273 Earnings per share:Basic$3.55 $4.28 $4.71 Diluted$3.51 $4.25 $4.68 Number of shares used in computation:Basic250 262 270 Diluted253 264 272 See accompanying Notes to Consolidated Financial Statements." **Prior (2025):** Year Ended March 31,(In millions, except per share data)202520242023Net revenue$7,463 $7,562 $7,426 Cost of revenue1,543 1,710 1,792 Gross profit5,920 5,852 5,634 Operating expenses:Research and development2,569 2,420 2,328 Marketing and sales962 1,019 978 General and administrative745 691 727 Amortization and impairment of intangibles67 142 158 Restructuring (See Note 8)57 62 111 Total operating expenses4,400 4,334 4,302 Operating income1,520 1,518 1,332 Interest and other income (expense), net85 71 (6)Income before provision for income taxes1,605 1,589 1,326 Provision for income taxes484 316 524 Net income$1,121 $1,273 $802 Earnings per share:Basic$4.28 $4.71 $2.90 Diluted$4.25 $4.68 $2.88 Number of shares used in computation:Basic262 270 277 Diluted264 272 278 Restructuring (See Note 8) See accompanying Notes to Consolidated Financial Statements. 35 35 35 Table of Contents Table of Contents **Current (2026):** Year Ended March 31,(In millions, except per share data)202620252024Net revenue$7,531 $7,463 $7,562 Cost of revenue1,584 1,543 1,710 Gross profit5,947 5,920 5,852 Operating expenses:Research and development2,828 2,569 2,420 Marketing and sales1,128 962 1,019 General and administrative763 745 691 Amortization and impairment of intangibles66 67 142 Restructuring - 57 62 Total operating expenses4,785 4,400 4,334 Operating income1,162 1,520 1,518 Interest and other income (expense), net18 85 71 Income before provision for income taxes1,180 1,605 1,589 Provision for income taxes293 484 316 Net income$887 $1,121 $1,273 Earnings per share:Basic$3.55 $4.28 $4.71 Diluted$3.51 $4.25 $4.68 Number of shares used in computation:Basic250 262 270 Diluted253 264 272 See accompanying Notes to Consolidated Financial Statements. 36 36 36 Table of Contents Table of Contents --- ## Modified: March 31,2026% of NetRevenueMarch 31,2025% of NetRevenue$ Change% Change$2,828 38 %$2,569 34 %$259 10 % **Key changes:** - Reworded sentence: "Research and development expenses increased by $259 million, or 10 percent, in fiscal year 2026, as compared to fiscal year 2025." **Prior (2025):** Research and development expenses increased by $149 million, or 6 percent, in fiscal year 2025, as compared to fiscal year 2024. This increase was primarily due to a $67 million increase in personnel-related costs as part of our continued investment in our studios, a $39 million increase in stock-based compensation, and an $11 million increase in contracted services. **Current (2026):** Research and development expenses increased by $259 million, or 10 percent, in fiscal year 2026, as compared to fiscal year 2025. This increase was primarily due to a $144 million increase in personnel-related costs as part of our continued investment in our studios, and an increase in variable compensation, a $53 million increase in studio-related contracted services, and a $45 million increase in digital infrastructure costs. --- ## Modified: March 31,2026% of NetRevenueMarch 31,2025% of NetRevenue$ Change% Change$763 10 %$745 10 %$18 2 % **Key changes:** - Reworded sentence: "General and administrative expenses increased by $18 million, or 2 percent, in fiscal year 2026, as compared to fiscal year 2025." **Prior (2025):** General and administrative expenses increased by $54 million, or 8 percent, in fiscal year 2025, as compared to fiscal year 2024. This increase was primarily due to a $20 million increase in personnel-related costs, a $9 million increase in stock-based compensation, and a $13 million increase in IT and facility-related costs. **Current (2026):** General and administrative expenses increased by $18 million, or 2 percent, in fiscal year 2026, as compared to fiscal year 2025. This increase was primarily due to $28 million of fees and other direct expenses related to the Merger, partially offset by a $7 million decrease in IT related costs. --- ## Modified: March 31,2026% of NetRevenueMarch 31,2025% of NetRevenue$ Change% Change$1,128 15 %$962 13 %$166 17 % **Key changes:** - Reworded sentence: "Marketing and sales expenses increased by $166 million, or 17 percent, in fiscal year 2026, as compared to fiscal year 2025." **Prior (2025):** Marketing and sales expenses decreased by $57 million, or 6 percent, in fiscal year 2025, as compared to fiscal year 2024. This decrease was primarily due to a decrease in advertising and promotional spending related to Star Wars Jedi: Survivor, and Apex Legends, partially offset by an increase in advertising and promotional spending related to the release of Dragon Age: The Veilguard in fiscal year 2025. **Current (2026):** Marketing and sales expenses increased by $166 million, or 17 percent, in fiscal year 2026, as compared to fiscal year 2025. This increase was primarily due to higher advertising and marketing spending related to the release of Battlefield 6, partially offset by a decrease in advertising and marketing spending for Apex Legends. --- *Data sourced from SEC EDGAR. Last updated 2026-06-01.*