Shares of Ubisoft dropped sharply on Thursday after the French gaming giant warned investors that financial challenges are expected to continue through the current fiscal year.
The publisher behind the Assassin’s Creed franchise reported an operating loss of €1.3 billion (approximately $1.5 billion) for its 2026 financial year. The company also posted net bookings of €1.5 billion, a 17.4% decline from the previous year.
Investors reacted negatively to the outlook, with Ubisoft shares falling as much as 16.7% during trading. The stock has now declined roughly 38% since the beginning of the year, extending a prolonged period of instability for the publisher.
Ubisoft Forecasts Another Difficult Year
Ubisoft said it expects full-year net bookings to decline by a high single-digit percentage during the next fiscal year. The company also projected a single-digit operating loss margin, signaling that profitability may remain out of reach in the near term.
Chief Executive Officer and co-founder Yves Guillemot acknowledged the difficult outlook while describing the current phase as part of a longer-term restructuring strategy.
In a statement released on Wednesday, Guillemot said the upcoming fiscal year is expected to represent “a low point” in Ubisoft’s cash flow performance, citing a weaker release schedule and ongoing restructuring expenses.
He added that the company’s transformation effort involves difficult decisions but is intended to create a more sustainable financial foundation over time.
Restructuring Efforts Continue
Ubisoft has faced mounting pressure in recent years as delays to major game releases, rising development costs, and shifting player demand weighed on performance.
The company confirmed that, as part of its restructuring program, it has discontinued seven projects and delayed six others. Ubisoft first announced major operational changes earlier this year, triggering a significant selloff in its stock.
Cost-cutting remains a major priority. Ubisoft said it completed an initial cost reduction program one year ahead of schedule. Fixed operating costs stood at €1.4 billion during fiscal 2026, and the company now aims to reduce that figure by an additional €200 million before March 2028.
Ubisoft’s financial struggles have persisted since the post-pandemic slowdown in gaming demand. While the company continues to invest in major franchises, including Assassin’s Creed, investors appear cautious about its ability to return to steady growth.
The latest warning suggests Ubisoft may face another challenging year before the publisher’s restructuring efforts begin to show measurable results.
