Ubisoft revenue plunges 13.7% in first quarter, stock falls on Paris exchange

French video game giant Ubisoft saw its first-quarter revenue plummet by 13.7% to 268.2 million euros, a decline that sent its stock tumbling 14.18% on the Paris stock exchange. The company's financial performance was weighed down by a difficult comparison to the previous year, which had seen significant revenue from the release of "Assassin's Creed Shadows."

Ubisoft's "net bookings", sales excluding deferred revenue, decreased by 9% in the first quarter of its staggered 2026-2027 fiscal year, reaching 255.8 million euros. This drop was attributed to the strong performance of "Assassin's Creed Shadows" in the prior year's first quarter.

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An encouraging sign

Despite the financial headwinds, the company highlighted the successful launch of "Assassin's Creed Black Flag Resynced" in early July, which has sold over 3.5 million copies. CEO Yves Guillemot described the launch as "an encouraging sign" for the group's future, noting that the title surpassed annual expectations within two weeks. Ubisoft anticipates its second quarter revenue to be around 370 million euros.

The company is also undergoing a significant restructuring, including the closure of its studios in Winnipeg, Canada, and Belgrade, Serbia, and ongoing staff reductions. These measures are part of a plan to cut costs by at least 200 million euros over two years, in addition to previous savings. However, these efforts have not fully reassured the market, with the stock price reflecting ongoing investor concerns.

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surpassed (its) annual expectations