Unity Software (NYSE:U) Hits New 12-Month High After Strong Earnings

Shares of Unity Software Inc. (NYSE:U) hit a new 52-week high on Friday following a better than expected earnings announcement. The stock traded as high as $52.50 and last traded at $51.3510, with a volume of 4,235,477 shares. The stock had previously closed at $48.80.

The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.03 by $0.41. Unity Software had a positive return on equity of 4.64% and a negative net margin of 28.97%. The business had revenue of $622.09 million during the quarter, compared to the consensus estimate of $567.03 million. During the same period in the prior year, the business posted $0.20 earnings per share. Unity Software’s revenue was up 32.2% compared to the same quarter last year.

Key Unity Software News

Here are the key news stories impacting Unity Software this week:

• Positive Sentiment: Unity reported its first quarterly GAAP profit since its 2020 IPO, with net income of $122 million. Q3 revenue rose 32.2% year over year to $622.1 million, beating expectations, while its Vector advertising revenue surged 126%. Unity Reports Third Quarter 2026 Financial Results
• Positive Sentiment: Q4 guidance was substantially above analyst expectations: Unity forecast revenue of $688 million to $696 million versus consensus of about $602 million. It also projected Q4 strategic revenue of $683 million to $691 million and an adjusted EBITDA margin of about 42%. Unity forecasts Q4 strategic revenue and margin
• Positive Sentiment: Reports say Silver Lake and Saudi Arabia’s Public Investment Fund have approached Unity about a possible acquisition, with reported deal values ranging from roughly $21.5 billion to $25 billion. Takeover interest may support expectations of a premium, although no agreement has been announced. Silver Lake and PIF takeover approach report
• Positive Sentiment: Needham raised its price target to $70 from $54 and maintained a Buy rating, adding to the upbeat analyst outlook. Needham analyst recommendations
• Neutral Sentiment: The reported acquisition talks remain preliminary; their outcome and any potential offer terms are uncertain.
• Negative Sentiment: One earnings analysis noted that Unity’s creator tools business is slowing, a potential concern if advertising growth does not continue to offset weakness in that segment. Analysis of Vector advertising and creator tools

Wall Street Analyst Weigh In

U has been the subject of several recent analyst reports. Wall Street Zen upgraded shares of Unity Software from a “hold” rating to a “buy” rating in a report on Monday, October 12th. Weiss Ratings restated a “sell (d-)” rating on shares of Unity Software in a report on Monday. Zacks Research lowered shares of Unity Software from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 6th. UBS Group restated an “outperform” rating on shares of Unity Software in a research report on Friday. Finally, Deutsche Bank Aktiengesellschaft raised shares of Unity Software from a “hold” rating to a “buy” rating and raised their price objective for the stock from $31.00 to $50.00 in a research note on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Unity Software has an average rating of “Moderate Buy” and an average price target of $52.80.

Insider Transactions at Unity Software

In related news, CEO Matthew Bromberg sold 16,383 shares of the firm’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $45.31, for a total transaction of $742,313.73. Following the transaction, the chief executive officer owned 1,541,131 shares of the company’s stock, valued at approximately $69,828,645.61. This trade represents a 1.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Alexander Blum sold 43,556 shares of the firm’s stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $43.51, for a total transaction of $1,895,121.56. Following the transaction, the chief operating officer directly owned 661,855 shares in the company, valued at approximately $28,797,311.05. The trade was a 6.17% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 109,547 shares of company stock worth $4,884,202. Corporate insiders own 0.77% of the company’s stock.

Hedge Funds Weigh In On Unity Software

Several hedge funds have recently bought and sold shares of U. Eurizon Capital SGR S.p.A. lifted its holdings in shares of Unity Software by 332.8% during the third quarter. Eurizon Capital SGR S.p.A. now owns 11,119 shares of the company’s stock worth $452,000 after buying an additional 8,550 shares during the last quarter. Austin Wealth Management LLC bought a new stake in shares of Unity Software in the third quarter valued at approximately $273,000. Maryland State Retirement & Pension System boosted its position in shares of Unity Software by 24.0% in the third quarter. Maryland State Retirement & Pension System now owns 22,313 shares of the company’s stock valued at $913,000 after acquiring an additional 4,324 shares during the period. Advisor Resource Council bought a new stake in shares of Unity Software in the third quarter valued at approximately $218,000. Finally, Ritholtz Wealth Management grew its stake in shares of Unity Software by 88.8% in the third quarter. Ritholtz Wealth Management now owns 14,902 shares of the company’s stock worth $610,000 after acquiring an additional 7,007 shares during the last quarter. 73.46% of the stock is owned by institutional investors and hedge funds.

Unity Software Stock Performance

The firm’s 50 day moving average price is $42.32 and its 200-day moving average price is $31.79. The firm has a market cap of $22.54 billion, a price-to-earnings ratio of -37.66, a P/E/G ratio of 1.85 and a beta of 2.08. The company has a debt-to-equity ratio of 0.55, a current ratio of 2.03 and a quick ratio of 2.03.

Unity Software Company Profile

Unity Software Inc develops software and services for creating, operating and monetizing interactive, real-time content. Its core product is the Unity engine, a development platform used to build video games and experiences for mobile devices, personal computers, consoles, augmented and virtual reality systems, and other platforms.

The company also provides tools and services that support the development and operation of interactive applications, including collaboration and cloud-based development tools, multiplayer and voice communication capabilities, analytics, advertising, and in-app monetization solutions.