The Consensus EPS Estimates For Ubisoft Entertainment SA (EPA:UBI) Just Fell A Lot

The analysts covering Ubisoft Entertainment SA (EPA:UBI) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

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Following this downgrade, Ubisoft Entertainment's 16 analysts are forecasting 2026 revenues to be €1.9b, approximately in line with the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 49% to €0.62. Prior to this update, the analysts had been forecasting revenues of €2.1b and earnings per share (EPS) of €0.38 in 2026. So we can see that the consensus has become notably more bearish on Ubisoft Entertainment's outlook with these numbers, making a measurable cut to this year's revenue estimates. Furthermore, they expect the business to be loss-making this year, compared to their previous forecasts of a profit.

Check out our latest analysis for Ubisoft Entertainment

The consensus price target fell 19% to €13.06, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 1.0% by the end of 2026. This indicates a significant reduction from annual growth of 2.4% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.2% per year. It's pretty clear that Ubisoft Entertainment's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest low-light for us was that the forecasts for Ubisoft Entertainment dropped from profits to a loss this year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Ubisoft Entertainment.

Unfortunately, the earnings downgrade - if accurate - may also place pressure on Ubisoft Entertainment's mountain of debt, which could lead to some belt tightening for shareholders. See why we're concerned about Ubisoft Entertainment's balance sheet by visiting our risks dashboard for free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.