Embracer Reports Stronger First Quarter as Its Big February Games Approach

OFFICIAL Written by GPN · Nov 1, 2026, 8:25 PM ET · Embracer Group · Gaming

Embracer Group has reported a stronger-than-expected start to its 2026/27 financial year, covering April to June 2026. In its interim report published on 13 August 2026, the Swedish games group said net sales rose 24 percent year on year, or 33 percent on an organic basis, to SEK 3,943 million.

Cash earnings, the measure Embracer now highlights as its key profit figure, improved to SEK 47 million, compared with a loss of SEK 99 million in the same quarter a year earlier. Adjusted earnings also rose sharply, to SEK 151 million, and free cash flow came in slightly positive at SEK 3 million despite what the company described as a quieter seasonal period.

The quarter was the first in which Embracer reported through two separate operating segments, Fellowship Entertainment and Embracer, a change designed to give a clearer picture of each part of the business ahead of a planned spin-off of Fellowship in calendar year 2027. The Embracer segment drove much of the growth, with sales up 48 percent to SEK 3,134 million, while Fellowship delivered what the company called a resilient result above its own expectations, supported by its catalogue of established franchises.

Looking ahead, Embracer repeated its forecast of at least SEK 1.0 billion in Cash EBIT for the full 2026/27 financial year, saying its confidence had improved after the first quarter. It also confirmed a shift for one of its biggest upcoming releases, with Warhammer 40,000: Dawn of War IV now expected in the third quarter, on 3 December, rather than in the second quarter.

The current financial year remains anchored by two February 2027 releases, Metro 2039 and Tomb Raider: Legacy of Atlantis, according to the report. For players, the update matters less as a single game announcement and more as a signal of where Embracer's slate is heading: a quieter first quarter, a busier second half, and a pipeline built around its best-known series.

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Embracer Group

Embracer Reports Stronger First Quarter as Its Big February Games Approach

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