Ubisoft Entertainment SA: FY26 In-Line, FY27 Pipeline Still Light

Research evidence excerpt

Ubisoft Entertainment SA: FY26 In-Line, FY27 Pipeline Still Light

Update

May 21, 2026 06:23 AM GMT

Morgan Stanley & Co. International plc+MUbisoft Entertainment SA | Europe Ed Young

Equity Analyst

FY26 In-Line, FY27 Pipeline Still Ed.Young@morganstanley.comConstantin P Kollmann +44 20 7677-1761

Research Associate

Constantin.Kollmann@morganstanley.com +44 20 7425-3268

Light

Ubisoft Entertainment SA (UBIP.PA, UBI FP)

Media & Entertainment | France

Reaction to earnings

Stock Rating Equal-weight

Unchanged In-line Largely unchanged Industry View In-Line

Impact to our thesis Financial results versus consensus Direction of next 12-month Price target €5.10

consensus EPS Shr price, close (May 20, 2026) €4.79

52-Week Range €10.60-3.70

Source: Company data, Morgan Stanley Research Mkt cap, curr (mn) €536

Net debt (03/26e) (mn)* €311

Summary. Ubisoft has reported FY net bookings of €1.53bn (-17.4% year-on-year, - EV, curr (mn)* €1,716

15.7% cc), broadly in-line with guidance of ~€1.50bn and 2% above VA consensus. * = GAAP or approximated based on GAAP

The decline reflects the expected soft release schedule. Within the mix, FY26 back-

catalogue net bookings were €1.28bn, 4% above consensus. Back catalogue was

primarily driven by the AC and R6S franchises. Non-IFRS operating income came in

at €(1.0)bn, in-line with guidance, reflecting the expected net bookings decline and

the one-off accelerated depreciation charge of ~€650m as part of the announced

group transformation and portfolio reset (here). In FY26, the company reported

129m (-4% year-on-year, flat when excluding xDefiant) unique users across Console

& PC and MAUs of 36m (flat year-on-year). Management says the group's shift to

the new operating model is underway, and had previously talked to operational