Ubisoft Shares Plunge 40% at Close After Drastic Restructuring
On January 21, 2026, Ubisoft unveiled a comprehensive restructuring aimed at reducing costs and refocusing production on its main franchises. By the close of January 22, 2026, the stock had fallen to 3.99 euros, reaching its lowest level in over ten years. This collapse reflects a significant loss of market confidence, exacerbated by the announcement of an expected operating deficit of one billion euros for the fiscal year 2025-2026.
Unprecedented Drop in Ubisoft's Stock
The trading session on Thursday, January 22 will be remembered for an unprecedented drop for UBISOFT ENTERTAIN. The stock plummeted nearly 40% from the previous day, moving from 6.63 euros to 3.99 euros at close. The company's valuation thus fell to 606 million euros, down from over 1.5 billion a year earlier. Internally, Ubisoft estimates a loss of 650 million euros due to the cancellation of games, delays, and a decrease in expected revenues. The French publisher now forecasts net bookings of 1.5 billion euros for the current fiscal year, along with a negative non-IFRS operating result of about 1 billion euros. Technically, the stock is now trading well below its reference moving averages: the MM50 is at 6.36 euros and the MM200 at 8.59 euros. The RSI indicator shows an extreme value of 100, suggesting a brutal oversold phase after this collapse. The previous support threshold at 6.09 euros was significantly breached, leaving the stock without immediate reference points.
Market Professionals Adjust Their Positions
Following this announcement, market professionals immediately adjusted their positions. Kepler Cheuvreux downgraded its recommendation to 'reduce' and lowered its price target from 7 to 5 euros, representing a limited upside potential of 25% from the last price. Meanwhile, BMO Capital Markets maintains an 'Outperform' rating but revises its target price from 14 to 10 euros, signaling a relatively cautious confidence in the group's medium-term rebound potential. Ubisoft announces the cancellation of no less than six games in development, while seven others have their launches postponed. Among the six canceled games, only one had already been announced: Prince of Persia: The Sands of Time Remake. For the rest, they had not yet been officially announced, but Ubisoft specifies that the batch included three new games not belonging to existing sagas, as well as one mobile game.
