Unity Software (U) stock rallied on Friday after the video game development software company announced preliminary results for its first quarter of 2026. The company said that its revenue for the quarter will range from $505 million to $508 million, which would be above its guidance of $480 million to $490 million. This would also see the company’s revenue surpass Wall Street’s estimate of $498.9 million.
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Trade U with leverageUnity Software attributed its strong Q1 revenue to Unity Vector, the company’s AI-powered advertising platform, and better-than-expected performance in Create. The company said it expects Grow revenue of approximately $352 million and Create revenue of approximately $155 million in Q1.
Unity Software also provided a preliminary Adjusted EBITDA range of $130 million to $135 million. This is also above the company’s guidance of $105 million to $110 million for the period and represents year-over-year growth of 58%.
Unity Software Stock Movement Today
Unity Software stock was up 16.81% in pre-market trading on Friday, following a 3.76% fall yesterday. The shares have also decreased 61.22% year-to-date and 16.6% over the past 12 months.
With today’s news came muted trading of U stock, as some 1.8 million shares changed hands. For comparison, the company’s three-month daily average trading volume is about 18.78 million shares.
Is Unity Software Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Unity Software is Moderate Buy, based on 12 Buy and five Hold ratings over the past three months. With that comes an average U stock price target of $32.50, representing a potential 89.73% upside for the shares.
