Oracle Corporation or Electronic Arts Inc.: Who Manages SG&A Costs Better?

Oracle vs. Electronic Arts: A Decade of SG&A Management

In the ever-evolving landscape of corporate finance, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Oracle Corporation and Electronic Arts Inc. have demonstrated contrasting approaches to SG&A cost management. From 2014 to 2024, Oracle's SG&A expenses have consistently been higher, averaging around $9.36 billion annually, while Electronic Arts maintained a more modest average of approximately $1.27 billion.

Interestingly, Oracle's SG&A expenses peaked in 2023, reaching over $10 billion, a 21% increase from 2014. In contrast, Electronic Arts saw a 57% rise in SG&A costs over the same period, peaking at $1.71 billion in 2024. This data highlights Oracle's larger scale and operational complexity, while Electronic Arts showcases a more agile cost structure. As businesses navigate the post-pandemic economy, these insights offer valuable lessons in strategic financial management.