Videogame maker Frontier Developments' FY26 revenue rises on CMS strength

Frontier Developments

10/06/2026 07:10

Overview
UK video game developer's FY26 revenue rose 16% to £104.8 mln, second highest on record
Adjusted operating profit for FY26 up 44% to record £19.0 mln, driven by strong CMS game sales
Company completed £15.5 mln share buybacks, reducing voting rights by 10% and boosting future EPS

Outlook
Company expects higher tax credits in FY27 and beyond under new regime

Result Drivers
CMS GAME FOCUS - Strategic emphasis on CMS games drove revenue growth, representing almost 90% of FY26 revenue
NEW RELEASES AND FRANCHISE CONTRIBUTIONS - Successful launch of Jurassic World Evolution 3 and continued revenue from Planet Coaster and Planet Zoo franchises supported results
COST MANAGEMENT AND TAX CREDITS - Careful cost control and higher-than-expected tax credits contributed to profit growth

Company press release: ID:nRSJ6263Ha

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
 
GBP 104.80 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Frontier Developments PLC is GBp620.00, about 32.1% above its June 9 closing price of GBp469.50
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)