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Trade U with leverageUnity Software ( (U) ) has provided an update.
On March 26, 2026, Unity reported preliminary, unaudited first-quarter 2026 results indicating revenue between $505 million and $508 million and Adjusted EBITDA of $130 million to $135 million, both above prior guidance and implying 17% revenue growth and 58% Adjusted EBITDA growth year over year. The outperformance was driven by strong gains in Unity Vector, with Grow revenue expected at about $352 million and Create at about $155 million, while Strategic Grow and Strategic Create revenues are projected to rise 48% and 14% year over year, respectively.
At the same time, Unity said it will sunset the ironSource Ads Network effective April 30, 2026 and has hired a financial adviser to pursue a divestiture of its Supersonic game publishing unit. These steps are aimed at sharpening the company’s focus on higher-growth, higher-margin strategic businesses, with management expecting faster revenue expansion, higher Adjusted EBITDA, and improved profitability as non-strategic ad operations are wound down and their revenue contribution becomes minimal after the first quarter of 2026.
The most recent analyst rating on (U) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Unity Software stock, see the U Stock Forecast page.
Spark’s Take on U Stock
According to Spark, TipRanks’ AI Analyst, U is a Neutral.
The score is anchored by mixed fundamentals: strong and improving free cash flow and a stabilizing balance sheet are offset by continued sizable net losses and uneven revenue growth. Technicals are a major drag given the pronounced downtrend and negative momentum signals. Offsetting these, the latest earnings call was notably positive on guidance, Vector growth, and margin expansion trajectory, helping keep the score in the mid-range despite weak valuation support from negative earnings.
To see Spark’s full report on U stock, click here.
More about Unity Software
Unity Software Inc., listed on the NYSE under ticker U, operates in the interactive 3D and gaming technology industry. The company offers a suite of tools that enable developers to create, deploy, and grow games and interactive experiences across mobile, PC, console, and extended reality platforms, serving both game studios and broader real-time 3D content creators worldwide.
Average Trading Volume: 16,928,747
Technical Sentiment Signal: Strong Sell
Current Market Cap: $7.71B
For an in-depth examination of U stock, go to TipRanks’ Overview page.