Company Reports

Ubisoft's fiscal first-quarter sales were modestly better than guidance. The firm gave no other hard results to glean how it is performing amid the near-term weakness it had already forecast. Ubisoft reiterated its full-year outlook and said its corporate transformation is progressing as expected.

Ubisoft's fiscal fourth-quarter results were in line with the sharply reduced forecast the firm shared in January upon announcing its organizational restructuring. However, the firm expects significant further deterioration in fiscal 2027, an outlook it had not shared previously.

Ubisoft develops and publishes top-quality video games and has perpetual cloud-streaming rights to Call of Duty and other Activision Blizzard games across most of the world. In 2025, Ubisoft spun its three biggest and most important franchises—Assassin’s Creed, Rainbow Six, and Far Cry—into a subsidiary in which Tencent took a 26% stake for EUR 1.16 billion.

Ubisoft's fiscal third-quarter bookings (cash sales) rose 12% year over year. The firm doesn't provide profitability metrics in odd quarters, but it reaffirmed its outlook from when it announced a restructuring last month: an EUR 1 billion operating loss and negative free cash flow this fiscal year.

Ubisoft announced a corporate reset that buried the lede that the company was slashing near-term revenue guidance and now projecting a EUR 1 billion operating loss in fiscal 2026 while abandoning its prior expectations for improvement in 2027.

Ubisoft develops and publishes top-quality video games and has perpetual cloud-streaming rights to Call of Duty and other Activision Blizzard games across most of the world. In 2025, Ubisoft spun its three biggest and most important franchises—Assassin’s Creed, Rainbow Six, and Far Cry—into a subsidiary in which Tencent took a 25% stake for EUR 1.16 billion.

Ubisoft develops and publishes top-quality video games and has perpetual cloud-streaming rights to Call of Duty and other Activision Blizzard games across most of the world. In 2025, Ubisoft spun its three biggest and most important franchises—Assassin’s Creed, Rainbow Six, and Far Cry—into a subsidiary in which Tencent took a 25% stake for EUR 1.16 billion.

Ubisoft's one-week delay in releasing earnings was due to a sales restatement, necessitated by an accounting reclassification, that led to noncompliance with a debt covenant. The issue seems to be harmlessly resolved; the Tencent investment closed, and fiscal second-quarter sales were excellent.

Shortly before Ubisoft was due to release its fiscal first-half earnings report, it announced the release would be delayed and requested that Euronext halt trading of its stock and bonds until it releases results, which it said will be in the coming days.

Ubisoft's fiscal first-quarter bookings (cash sales) fell 3% year over year, missing guidance by 10%. The firm attributed the miss to a technical issue that kept it from fully monetizing Rainbow Six Siege. Ubisoft didn't disclose profitability but maintained its full-year sales and profit outlook.

Ubisoft develops and publishes top-quality video games and has perpetual cloud-streaming rights to Call of Duty and other Activision Blizzard games across most of the world. In March 2025, Ubisoft announced that it would spin its three biggest and most important franchises—Assassin’s Creed, Rainbow Six, and Far Cry—into a subsidiary in which Tencent would take a 25% stake for EUR 1.16 billion.

Ubisoft develops and publishes top-quality video games and has perpetual cloud-streaming rights to Call of Duty and other Activision Blizzard games across most of the world. In March 2025, Ubisoft announced that it would spin its three biggest and most important franchises—Assassin’s Creed, Rainbow Six, and Far Cry—into a subsidiary in which Tencent would take a 25% stake for EUR 1.16 billion.

Despite touting the success of Assassin's Creed Shadows, Ubisoft's fiscal fourth-quarter sales missed management's forecast, and its 2026 outlook for flat sales, operating losses, and negative free cash flow was more disappointing. However, the pending joint venture with Tencent strengthens Ubisoft.

Ubisoft develops and publishes top-quality video games for play on consoles, PCs, and mobile devices. In addition to selling copies of its games, it offers Ubisoft+, a monthly subscription service that allows access to its games. Ubisoft also has perpetual cloud-streaming rights to Call of Duty and other Activision Blizzard games across most of the world, following a regulatory concession that Microsoft gave to acquire Activision Blizzard.

Ubisoft struck a deal to create a subsidiary holding its most valuable franchises—Assassin's Creed, Far Cry, and Rainbow Six—and sell a roughly 25% stake in the subsidiary to Tencent. Ubisoft will receive about EUR 1.16 billion in a deal the firm expects to close in calendar 2025.

We downgraded our Morningstar Economic Moat Rating for Ubisoft to none from narrow. We no longer believe the intangible assets that had underpinned our rating give Ubisoft a competitive advantage that makes it likely the firm will generate excess returns on invested capital over the next 10 years.

Ubisoft develops and publishes top-quality video games for play on consoles, PCs, and mobile devices. In addition to selling copies of its games, it offers Ubisoft+, a monthly subscription service that allows access to its games. Ubisoft also has perpetual cloud-streaming rights to Call of Duty and other Activision Blizzard games across most of the world, following a regulatory concession that Microsoft gave to acquire Activision Blizzard.

Narrow-moat Ubisoft’s third-quarter sales update was in line with the guidance provided in early January. The firm remains on shaky footing and has become increasingly reliant on a strong release of Assassin’s Creed: Shadows. While preorder numbers and recent playtesting have been positive, we are slightly less confident that the rest of the small fiscal 2026 release slate will be able to build on the success of AC: Shadows and meet our forecast net bookings. After adjusting our model for slower growth in fiscal 2026, we are lowering our fair value to EUR 16 from EUR 19.

Ubisoft owns some of the best-known video game franchises, including Assassin’s Creed and the Tom Clancy series. We expect these core titles will provide opportunities to create new content that generates consistent revenue. However, increased investment in new game development over the past few years has delivered poor results, and execution around core titles has faltered. We still see room for financial results to improve, but we suspect the next year will be bumpy.

Ubisoft owns some of the best-known video game franchises, including Assassin’s Creed and the Tom Clancy series. We expect these core titles will provide opportunities to create new content that generates consistent revenue. However, increased investment in new game development over the past few years has delivered poor results, and execution around core titles has faltered. We still see room for financial results to improve, but we suspect the next year will be bumpy.