In absence of a new addition to the Assassin's Creed series this year (more on that here), Ubisoft has confirmed in their latest financial report that a sequel to Watch Dogs will be released before March 31, 2017.
The report lists a few different games that have planned releases, dating from April 2016 to March 2017. The titles on said list are thus:
For Honor, South Park: The Fractured But Whole, Tom Clancy's Ghost Recon: WildLands, the next instalment of Watch Dogs, and a new high-potential AAA brand with strong digital live services.
It's no surprise that a sequel has been confirmed as the company has spoken before about a follow up to the title, with creative director Jonathon Morin speaking previously about how Watch Dogs 2 would need to find "a new way" to appeal to audiences.
Also mentioned on the list is a "new high-potential AAA" IP coming within the next 13 months, however the report doesn't go into much detail other than the line about "strong digital live services", so we'll just have to wait and see what this new IP could be.