Track market-moving stories before they get noisy

Unity Software Inc. (U - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this company have returned -6.6%, compared to the Zacks S&P 500 composite's no change. During this period, the Zacks Internet - Software industry, which Unity Software falls in, has lost 2.7%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Unity Software is expected to post earnings of $0.34 per share, indicating a change of +70% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $1.21 points to a change of +40.7% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $1.83 indicates a change of +50.8% from what Unity Software is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Unity Software.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Unity Software, the consensus sales estimate of $564.84 million for the current quarter points to a year-over-year change of +20%. The $2.22 billion and $2.69 billion estimates for the current and next fiscal years indicate changes of +20% and +21.1%, respectively.

Last Reported Results and Surprise HistoryUnity Software reported revenues of $546.47 million in the last reported quarter, representing a year-over-year change of +23.9%. EPS of $0.28 for the same period compares with -$0.26 a year ago.

Compared to the Zacks Consensus Estimate of $511.84 million, the reported revenues represent a surprise of +6.77%. The EPS surprise was +16.67%.

Over the last four quarters, Unity Software surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Unity Software is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Unity Software. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

In the latest trading session, Unity Software Inc. (U - Free Report) closed at $40.16, marking a -1.03% move from the previous day. This change lagged the S&P 500's daily gain of 0.28%. Elsewhere, the Dow saw an upswing of 1.02%, while the tech-heavy Nasdaq depreciated by 0.02%.

The company's shares have seen a decrease of 6.09% over the last month, not keeping up with the Computer and Technology sector's loss of 2.28% and the S&P 500's gain of 0.67%.

Analysts and investors alike will be keeping a close eye on the performance of Unity Software Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on November 5, 2026. The company is expected to report EPS of $0.34, up 70% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $564.84 million, indicating a 20.02% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $1.21 per share and a revenue of $2.22 billion, demonstrating changes of +40.7% and +19.95%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Unity Software Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Unity Software Inc. possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Unity Software Inc. is currently being traded at a Forward P/E ratio of 33.54. This expresses a premium compared to the average Forward P/E of 20.54 of its industry.

It's also important to note that U currently trades at a PEG ratio of 0.81. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.23.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 70, placing it within the top 29% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow U in the coming trading sessions, be sure to utilize Zacks.com.

In the latest close session, Unity Software Inc. (U - Free Report) was down 11.22% at $41.40. The stock trailed the S&P 500, which registered a daily loss of 1.11%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 1.88%.

The stock of company has risen by 8.42% in the past month, leading the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.06%.

The investment community will be closely monitoring the performance of Unity Software Inc. in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.34, marking a 70% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $564.84 million, reflecting a 20.02% rise from the equivalent quarter last year.

U's full-year Zacks Consensus Estimates are calling for earnings of $1.21 per share and revenue of $2.22 billion. These results would represent year-over-year changes of +40.7% and +19.95%, respectively.

It is also important to note the recent changes to analyst estimates for Unity Software Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Unity Software Inc. is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Unity Software Inc. has a Forward P/E ratio of 38.54 right now. This expresses a premium compared to the average Forward P/E of 20.8 of its industry.

We can also see that U currently has a PEG ratio of 0.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.19 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 79, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

SAN FRANCISCO--(BUSINESS WIRE)--Unity (NYSE: U) announced today it will release third quarter 2026 financial results before the market opens on November 05, 2026, with a webcast to follow at 8:30 a.m. ET/5:30 a.m. PT. Unity's financial results, live webcast and webcast replay will be available on its Investor Relations website at investors.unity.com. About Unity Software Inc. (Unity) Unity [NYSE: U] offers a suite of tools to develop, deploy, and grow games and interactive experiences across al.

Unity Software Inc. (NYSE:U) stock rose about 2% Thursday after Raymond James upgraded the stock, citing the company’s recently announced partnership with Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google.

The gains came despite broader market weakness. The Nasdaq fell 0.47%, while the S&P 500 declined 0.27%.

Raymond James Upgrades Unity Following Google PartnershipRaymond James analyst Andrew Marok upgraded Unity Software from Market Perform to Outperform and set a $54 price forecast.

Marok cited Unity’s recently announced partnership with Google as a key factor behind the upgrade. Meanwhile, Freedom Capital Markets maintained its Buy rating Thursday with a $48 price forecast.

Marok said his outlook on Unity had already improved following stronger-than-expected performance in its Grow business. Growth in Vector and improving operating leverage exceeded initial expectations.

However, Marok had concerns about Unity’s ability to retain creators and content developers as platforms such as Roblox Corporation (NYSE:RBLX) and generative AI tools make game development easier.

He said the Google partnership addresses those concerns by combining Unity’s development and runtime technology with Google’s artificial intelligence capabilities and consumer reach.

With greater confidence in Unity’s interconnected Create, Runtime and Vector businesses, Marok now sees a more favorable risk-reward outlook for the stock.

Unity’s gains stood out as technology stocks declined 0.62%. Only three of the S&P 500’s 11 sectors advanced, while the market’s advance-decline ratio stood at 0.4. Energy led gains, rising 2.91%, followed by consumer staples at 1.31%.

Technical Analysis: Unity Maintains Bullish MomentumUnity shares remain above their key moving averages, signaling continued strength.

The stock trades 7.5% above its 20-day simple moving average (SMA) of $42.96 and 44.6% above its 200-day SMA of $31.93.

Additionally, its 20-day SMA remains above its 50-day SMA of $42.51, supporting the near-term uptrend.

The stock formed a golden cross in August when its 50-day SMA moved above its 200-day SMA. This technical pattern often signals improving long-term momentum.

Meanwhile, the moving average convergence divergence (MACD) indicator remains above its signal line, suggesting continued buying pressure.

Traders are watching $48.50 as the next resistance level, while $40 represents a key support area.

Unity also has a bullish Benzinga Edge momentum score of 96.67, reflecting its strong price performance.

Earnings Outlook And Analyst ExpectationsUnity’s next earnings report is tentatively scheduled for Nov. 4.

Analysts expect earnings of 3 cents per share, down from 20 cents a year earlier. Revenue is projected to reach $563.80 million, compared with $470.62 million in the year-ago period.

The stock carries a consensus Buy rating, with an average price forecast of $46.93.

Unity also has exposure through gaming and technology-focused ETFs, including the VanEck Video Gaming and eSports ETF (NASDAQ:ESPO), Innovator Deepwater Frontier Tech ETF (NYSE:LOUP) and Roundhill Metaverse ETF (NYSE:METV).

U Stock Price ActionU Stock Price Activity: Unity Software shares were up 2.01% at $46.35 at the time of publication on Thursday, according to Benzinga Pro data.

Photo via Shutterstock 

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© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Unity Software Inc (NYSE:U) stock is up 0.5% to trade at $45.10 this morning, cooling slightly from its early morning surge after the video game software  company announced a partnership with Google to develop an AI-powered Unity Spark game creation platform.

SAN FRANCISCO--(BUSINESS WIRE)--Google and Unity today announced a strategic partnership for a new, integrated gaming platform coming later this year designed to revolutionize the next era of gaming. Bringing together the power of Google AI, the reach of Google's billion user products, and the world-class game-building expertise of Unity, this initiative will put game creation in the hands of millions of new creators, and bring new experiences to billions of players worldwide. Exploring the nex.

Unity Software Inc. (NYSE:U) shares are rising Monday. Piper Sandler analyst James Callahan reiterated the rating and price target on the stock ahead of the company’s third-quarter report. Here’s what you should know.

Unity Software stock is among today’s top performers. Why is U stock surging? Piper Sandler Stays Bullish On Unity Ahead of EarningsPiper Sandler reiterated an Overweight rating and a $55 price target on Unity. Piper Sandler says it remains a buyer going into the third-quarter report.

PSC mobile gaming data points to continued momentum, Callahan said. Callahan also sees room for analysts to raise their estimates for Unity. The earnings report is the next event to watch, and higher estimates are the possible payoff.

Callahan flagged one risk. Broader macro pressure, such as a higher cost of supply, could weigh on Unity.

Piper Sandler Sees Unity’s Legal Fight With AppLovin as a PositivePiper Sandler also points to Unity’s dispute with AppLovin. AppLovin asked a California court for a temporary restraining order to restrict Unity from collecting certain data through its Ad Quality software. AppLovin alleges Unity improperly gathered data tied to its ads, and Unity has disputed that.

Callahan said the lawsuit news is positive for Unity, including the denial of the restraining order. Piper Sandler’s checks on the Ad Quality software are also quite positive, Callahan said.

U Shares Are Moving HigherU Price Action: Unity shares were up 5.30% at $45.92 at the time of publication on Monday, according to Benzinga Pro.

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Image: Shutterstock

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In the latest close session, Unity Software Inc. (U - Free Report) was down 6.08% at $41.42. The stock's change was less than the S&P 500's daily loss of 0.03%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, added 0.01%.

Shares of the company have depreciated by 0.63% over the course of the past month, underperforming the Computer and Technology sector's gain of 5.26%, and the S&P 500's gain of 0.53%.

The investment community will be closely monitoring the performance of Unity Software Inc. in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.34, reflecting a 70% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $564.84 million, showing a 20.02% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.21 per share and revenue of $2.22 billion, which would represent changes of +40.7% and +19.95%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Unity Software Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Unity Software Inc. currently has a Zacks Rank of #2 (Buy).

In terms of valuation, Unity Software Inc. is currently trading at a Forward P/E ratio of 36.45. This represents a premium compared to its industry average Forward P/E of 19.86.

Investors should also note that U has a PEG ratio of 0.88 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.15 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 39% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Unity Software Inc. (U - Free Report) closed at $41.16 in the latest trading session, marking a -1.63% move from the prior day. This change lagged the S&P 500's daily gain of 0.17%. Elsewhere, the Dow saw a downswing of 0.18%, while the tech-heavy Nasdaq appreciated by 0.4%.

Coming into today, shares of the company had lost 10.1% in the past month. In that same time, the Computer and Technology sector gained 0.37%, while the S&P 500 lost 1.29%.

Investors will be eagerly watching for the performance of Unity Software Inc. in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.34, indicating a 70% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $564.84 million, indicating a 20.02% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.21 per share and a revenue of $2.22 billion, representing changes of +40.7% and +19.95%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Unity Software Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Unity Software Inc. boasts a Zacks Rank of #2 (Buy).

From a valuation perspective, Unity Software Inc. is currently exchanging hands at a Forward P/E ratio of 34.58. For comparison, its industry has an average Forward P/E of 20.16, which means Unity Software Inc. is trading at a premium to the group.

Also, we should mention that U has a PEG ratio of 0.84. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 1.14 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 78, this industry ranks in the top 32% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow U in the coming trading sessions, be sure to utilize Zacks.com.

Unity Software Inc. (U - Free Report) ended the recent trading session at $42.13, demonstrating a -2.05% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.45%. On the other hand, the Dow registered a loss of 1.21%, and the technology-centric Nasdaq decreased by 0.01%.

Heading into today, shares of the company had lost 7.98% over the past month, lagging the Computer and Technology sector's loss of 1.9% and the S&P 500's loss of 2.43%.

The investment community will be paying close attention to the earnings performance of Unity Software Inc. in its upcoming release. On that day, Unity Software Inc. is projected to report earnings of $0.34 per share, which would represent year-over-year growth of 70%. Alongside, our most recent consensus estimate is anticipating revenue of $564.84 million, indicating a 20.02% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $1.21 per share and a revenue of $2.22 billion, demonstrating changes of +40.7% and +19.95%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Unity Software Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Unity Software Inc. boasts a Zacks Rank of #2 (Buy).

Looking at its valuation, Unity Software Inc. is holding a Forward P/E ratio of 35.54. This valuation marks a premium compared to its industry average Forward P/E of 20.36.

We can also see that U currently has a PEG ratio of 0.86. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. U's industry had an average PEG ratio of 1.14 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 90, placing it within the top 37% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

U weekly chart shows powerful advance. Source: TradingView Weekly Breakout Opens Higher Targets Other bullish evidence includes an upside breakout on the weekly chart, establishing a higher weekly low of $40.67 and a higher high of $44.24. The breakout was confirmed on the weekly timeframe since the week closed at $43.95, above last week’s high of $43.80. If support is retained, then the first upside target is the recent high of $48.46, followed by the peak of $52.15 from December 2025.

Cup-and-Handle Potential Adds to Setup Given the overall structure of the recent advance and the prior decline that followed the 2025 peak, there is a possibility that the handle portion of a cup-with-handle basing pattern could form either before or after a rally above $48.47 occurs. Therefore, this week’s low is key near-term support. A break below it could lead to a drop below $40.22 and a test of support near the 50% retracement of the prior upswing. For now, however, the ability to hold support near $40.72 keeps the focus on whether the recent strong advance can resume and eventually challenge $48.46.

If you’d like to know more about technical analysis and how traders use it, please visit our educational area.

HB Wealth Management LLC boosted its holdings in Unity Software Inc. (NYSE:U – Free Report) by 10.8% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 274,554 shares of the company’s stock after buying an additional 26,762 shares during the period. HB Wealth Management LLC owned approximately 0.06% of Unity Software worth $7,847,000 as of its most recent SEC filing.

A number of other large investors also recently modified their holdings of the business. REAP Financial Group LLC acquired a new stake in shares of Unity Software in the fourth quarter worth $28,000. Larson Financial Group LLC boosted its holdings in Unity Software by 88.1% in the 3rd quarter. Larson Financial Group LLC now owns 728 shares of the company’s stock valued at $29,000 after purchasing an additional 341 shares during the period. IFP Advisors Inc acquired a new stake in Unity Software in the 3rd quarter worth $33,000. International Assets Investment Management LLC acquired a new stake in Unity Software in the 4th quarter worth $36,000. Finally, Summit Securities Group LLC bought a new position in shares of Unity Software during the 1st quarter worth about $54,000. 73.46% of the stock is currently owned by institutional investors and hedge funds.

Unity Software Stock Performance Shares of NYSE:U opened at $41.63 on Monday. The business’s fifty day moving average price is $36.58 and its two-hundred day moving average price is $28.44. Unity Software Inc. has a fifty-two week low of $16.78 and a fifty-two week high of $52.15. The stock has a market capitalization of $18.32 billion, a price-to-earnings ratio of -30.61, a price-to-earnings-growth ratio of 1.82 and a beta of 2.06. 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 (NYSE:U – Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.11) by $0.39. Unity Software had a positive return on equity of 4.64% and a negative net margin of 28.97%.The company had revenue of $546.47 million during the quarter, compared to analysts’ expectations of $514.72 million. During the same period last year, the business earned $0.18 earnings per share. The business’s revenue was up 24.0% on a year-over-year basis. As a group, analysts predict that Unity Software Inc. will post 0.55 EPS for the current fiscal year. Insider Activity In other news, SVP Rebecca Boyden sold 1,032 shares of the firm’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $45.32, for a total transaction of $46,770.24. Following the completion of the sale, the senior vice president owned 308,413 shares of the company’s stock, valued at approximately $13,977,277.16. This trade represents a 0.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jarrod Yahes sold 26,017 shares of Unity Software 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 $1,178,830.27. Following the completion of the transaction, the chief financial officer owned 678,343 shares of the company’s stock, valued at $30,735,721.33. This trade represents a 3.69% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 109,547 shares of company stock worth $4,884,202. Company insiders own 0.77% of the company’s stock.

Wall Street Analysts Forecast Growth Several equities analysts recently issued reports on U shares. Zacks Research upgraded Unity Software from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 13th. Piper Sandler lifted their price target on shares of Unity Software from $45.00 to $55.00 and gave the stock an “overweight” rating in a research note on Friday, August 7th. Weiss Ratings raised shares of Unity Software from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday, August 4th. Benchmark raised shares of Unity Software from a “hold” rating to a “buy” rating and set a $50.00 price objective for the company in a report on Friday, August 7th. Finally, Wedbush upped their target price on shares of Unity Software from $32.00 to $36.00 and gave the company an “outperform” rating in a research note on Wednesday, July 22nd. Two research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $45.16.

Read Our Latest Analysis on Unity Software

Unity Software Profile (Free Report)

Unity Software is a leading provider of a real-time 3D development platform that enables creators across industries to design, build and operate interactive, real-time experiences. Originally focused on the game development market, Unity’s technology now extends into sectors such as film, automotive, architecture, engineering and construction, delivering immersive content for mobile, desktop, console, augmented reality and virtual reality devices. The company’s core offering comprises a suite of authoring tools, runtime engines and cloud services that streamline the creation and deployment of interactive 3D applications.

The Unity Editor serves as the central hub where developers design scenes, script behavior and iterate on assets.

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Caisse de depot et placement du Quebec bought a new stake in Unity Software Inc. (NYSE:U – Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm bought 36,400 shares of the company’s stock, valued at approximately $1,040,000.

Other hedge funds have also bought and sold shares of the company. Wellington Management Group LLP grew its stake in Unity Software by 58.7% in the 3rd quarter. Wellington Management Group LLP now owns 18,213,875 shares of the company’s stock worth $729,284,000 after buying an additional 6,734,285 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of Unity Software by 5.9% during the 4th quarter. Geode Capital Management LLC now owns 5,852,047 shares of the company’s stock valued at $258,547,000 after buying an additional 328,595 shares in the last quarter. Norges Bank purchased a new position in shares of Unity Software during the 4th quarter valued at about $230,285,000. Ameriprise Financial Inc. lifted its position in Unity Software by 37.8% in the 2nd quarter. Ameriprise Financial Inc. now owns 4,628,328 shares of the company’s stock worth $112,006,000 after buying an additional 1,270,798 shares during the last quarter. Finally, T. Rowe Price Investment Management Inc. lifted its position in Unity Software by 41.5% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 4,622,445 shares of the company’s stock worth $204,174,000 after buying an additional 1,355,847 shares during the last quarter. 73.46% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth U has been the subject of several research reports. Zacks Research raised Unity Software from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 13th. Wedbush lifted their price target on shares of Unity Software from $32.00 to $36.00 and gave the stock an “outperform” rating in a research note on Wednesday, July 22nd. Benchmark upgraded shares of Unity Software from a “hold” rating to a “buy” rating and set a $50.00 price objective for the company in a report on Friday, August 7th. Oppenheimer upped their price objective on shares of Unity Software from $38.00 to $47.00 and gave the company an “outperform” rating in a research note on Friday, August 7th. Finally, Wall Street Zen raised shares of Unity Software from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $45.16.

View Our Latest Report on Unity Software Unity Software Trading Up 0.2% NYSE U opened at $43.40 on Monday. Unity Software Inc. has a fifty-two week low of $16.78 and a fifty-two week high of $52.15. The company has a debt-to-equity ratio of 0.55, a quick ratio of 2.03 and a current ratio of 2.03. The stock has a 50 day simple moving average of $35.17 and a two-hundred day simple moving average of $27.74. The stock has a market cap of $19.10 billion, a P/E ratio of -31.91, a price-to-earnings-growth ratio of 1.90 and a beta of 2.04.

Unity Software (NYSE:U – Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.28 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.11) by $0.39. Unity Software had a positive return on equity of 4.64% and a negative net margin of 28.97%.The firm had revenue of $546.47 million for the quarter, compared to analyst estimates of $514.72 million. During the same period last year, the company earned $0.18 EPS. The business’s quarterly revenue was up 24.0% compared to the same quarter last year. On average, analysts forecast that Unity Software Inc. will post 0.55 earnings per share for the current year.

Insider Activity at Unity Software In other news, COO Alexander Blum sold 20,595 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $45.31, for a total value of $933,159.45. Following the completion of the transaction, the chief operating officer owned 707,375 shares of the company’s stock, valued at approximately $32,051,161.25. This represents a 2.83% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Rebecca Berenice Boyden sold 1,032 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $45.32, for a total value of $46,770.24. Following the completion of the transaction, the senior vice president directly owned 308,413 shares of the company’s stock, valued at $13,977,277.16. This represents a 0.33% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 65,991 shares of company stock valued at $2,989,081 in the last 90 days. 0.77% of the stock is owned by company insiders.

About Unity Software (Free Report)

Unity Software is a leading provider of a real-time 3D development platform that enables creators across industries to design, build and operate interactive, real-time experiences. Originally focused on the game development market, Unity’s technology now extends into sectors such as film, automotive, architecture, engineering and construction, delivering immersive content for mobile, desktop, console, augmented reality and virtual reality devices. The company’s core offering comprises a suite of authoring tools, runtime engines and cloud services that streamline the creation and deployment of interactive 3D applications.

The Unity Editor serves as the central hub where developers design scenes, script behavior and iterate on assets.

Further Reading Five stocks we like better than Unity Software Strike a Balance Between Growth and Stability With These 3 Names Ready to Rally Rubrik’s AI Security Bet Could Power the Next Leg Higher Apple’s Foldable iPhone Could Be a Catalyst, But Not a Cure-All Snowflake Is Up Nearly 50% in 2026—What Are Short Sellers Betting Against?

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Avala Global LP acquired a new stake in shares of Unity Software Inc. (NYSE:U – Free Report) during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund acquired 2,187,605 shares of the company’s stock, valued at approximately $62,522,000. Unity Software makes up about 2.3% of Avala Global LP’s investment portfolio, making the stock its 20th largest position. Avala Global LP owned about 0.50% of Unity Software at the end of the most recent reporting period.

Several other large investors have also recently added to or reduced their stakes in the stock. Renaissance Technologies LLC acquired a new stake in shares of Unity Software during the 1st quarter valued at $54,534,000. Entropy Technologies LP acquired a new position in shares of Unity Software in the first quarter worth $1,985,000. Vanguard Group Inc. increased its stake in shares of Unity Software by 2.9% in the fourth quarter. Vanguard Group Inc. now owns 35,553,296 shares of the company’s stock worth $1,570,389,000 after acquiring an additional 996,685 shares during the last quarter. Nano Cap New Millennium Growth Fund L P acquired a new position in shares of Unity Software in the fourth quarter worth $3,710,000. Finally, Norges Bank purchased a new stake in shares of Unity Software during the fourth quarter worth $230,285,000. Institutional investors and hedge funds own 73.46% of the company’s stock.

Analyst Ratings Changes A number of analysts recently issued reports on U shares. Citizens Jmp lifted their price objective on Unity Software from $37.00 to $45.00 and gave the company a “market outperform” rating in a research report on Friday, August 7th. Wells Fargo & Company upped their target price on Unity Software from $36.00 to $48.00 and gave the stock an “overweight” rating in a research report on Friday, August 7th. BTIG Research raised their price target on Unity Software from $43.00 to $51.00 and gave the stock a “buy” rating in a research note on Thursday, August 6th. Citigroup lifted their price target on Unity Software from $40.00 to $48.00 and gave the company a “buy” rating in a report on Monday, August 10th. Finally, Piper Sandler boosted their price target on Unity Software from $45.00 to $55.00 and gave the company an “overweight” rating in a research note on Friday, August 7th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $45.16.

Read Our Latest Report on U Unity Software Price Performance Shares of NYSE:U opened at $44.15 on Thursday. The stock has a market capitalization of $19.43 billion, a P/E ratio of -32.46, a P/E/G ratio of 1.97 and a beta of 2.04. The business has a 50-day moving average of $34.53 and a two-hundred day moving average of $27.50. Unity Software Inc. has a fifty-two week low of $16.78 and a fifty-two week high of $52.15. 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 (NYSE:U – Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.28 EPS for the quarter, beating analysts’ consensus estimates of ($0.11) by $0.39. Unity Software had a positive return on equity of 4.64% and a negative net margin of 28.97%.The business had revenue of $546.47 million for the quarter, compared to analyst estimates of $514.72 million. During the same quarter in the prior year, the firm posted $0.18 EPS. The firm’s revenue for the quarter was up 24.0% on a year-over-year basis. On average, equities research analysts predict that Unity Software Inc. will post 0.55 EPS for the current fiscal year.

Insiders Place Their Bets In other news, SVP Rebecca Berenice Boyden sold 1,032 shares of Unity Software stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $45.32, for a total value of $46,770.24. Following the transaction, the senior vice president owned 308,413 shares of the company’s stock, valued at $13,977,277.16. This trade represents a 0.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Matthew S. Bromberg sold 16,383 shares of the business’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $45.31, for a total transaction of $742,313.73. Following the completion of the sale, the chief executive officer owned 1,541,131 shares of the company’s stock, valued at $69,828,645.61. The trade was a 1.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 43,432 shares of company stock valued at $1,967,914 over the last 90 days. 0.77% of the stock is currently owned by company insiders.

Unity Software Profile (Free Report)

Unity Software is a leading provider of a real-time 3D development platform that enables creators across industries to design, build and operate interactive, real-time experiences. Originally focused on the game development market, Unity’s technology now extends into sectors such as film, automotive, architecture, engineering and construction, delivering immersive content for mobile, desktop, console, augmented reality and virtual reality devices. The company’s core offering comprises a suite of authoring tools, runtime engines and cloud services that streamline the creation and deployment of interactive 3D applications.

The Unity Editor serves as the central hub where developers design scenes, script behavior and iterate on assets.

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Jarrod Yahes, SVP and Chief Financial Officer of Unity Software Inc. (U -0.41%), reported the sale of 26,017 shares of common stock on Aug. 25, 2026, according to a recent SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$1.2 millionShares sold26,017Post-transaction shares (directly held)678,343Post-transaction value$30.52 millionTransaction value based on SEC Form 4 weighted average sale price ($45.31); post-transaction value based on Aug. 25, 2026, market close ($44.99).

Key questionsWhat was the primary driver behind this disposition of shares?
The transaction was a non-discretionary sale executed specifically to fund tax withholding requirements triggered by the vesting of equity awards. This type of automated execution is common for executives managing the fiscal impact of their compensation packages.What is the scale of the insider's remaining equity position?
Following the sale, the CFO retains direct ownership of 678,343 shares of common stock. At the Aug. 25, 2026, market close price of $44.99, this direct stake is valued at approximately $30.52 million.How does this sale relate to the company's broader market capitalization?
Unity Software maintains a market capitalization of $19.6 billion as of late August 2026. Total insider ownership across the firm stands at approximately 0.16% of outstanding shares.In what business context does Unity Software operate?
The San Francisco-based company provides a platform for creating and operating real-time 3D content. Developers and creators utilize its software to build applications for mobile devices, gaming consoles, and augmented reality hardware.Company OverviewMetricValueShare Price (as of market close 2026-08-25)$44.99Market Capitalization$19.6 billionRevenue (TTM)$2.0 billionNet Income (TTM)-$586.9 millionCompany SnapshotUnity Software provides a foundational platform for developing and operating interactive, real-time 3D content, enabling users to create, deploy, and monetize dynamic 2D and 3D content across mobile devices, tablets, personal computers, gaming consoles, and augmented and virtual reality hardware.The company generates revenue through licensing its development platform, subscription services, and monetization solutions that enable developers to build and distribute interactive content while capturing value from end-user engagement.Unity serves a diverse professional base, including content creators, software developers, game developers, and enterprises across industries seeking to develop immersive interactive experiences and real-time 3D applications.Unity Software is a leading provider of real-time 3D development and operating platform with a market capitalization of $19.6 billion and TTM revenues of $2.0 billion. The company maintains a substantial developer ecosystem and continues to expand its platform capabilities to address growing demand for interactive content across gaming, entertainment, and enterprise applications. Despite current operating losses, Unity's strategic positioning in the high-growth 3D content creation market and its comprehensive platform offering provide a competitive foundation for long-term value creation.

What this transaction means for investorsAlthough Jarrod Yahes's sale of Unity shares might spark concerns at first glance, this is probably not a move that should set off investors.

As stated in the Form 4, Yahes sold some shares to cover tax withholding obligations, a common move when an insider's equity awards vest. Moreover, the sale amounted to about 4% of his Unity holdings, implying an intent to minimize the impact of the vesting on his position in the tech stock.

A closer look at the stock could explain why Yahes wants to keep most of his shares. Unity stock has traded in a range since the 2022 bear market and has consistently reported losses.

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Nonetheless, after making only modest gains in 2025, analysts forecast a 20% increase in revenue in 2026. Its AI-powered platform Vector has renewed interest in its software development ecosystem.

Moreover, the price-to-sales (P/S) ratio, which once topped 50 at the height of the 2021 bull market, now stands at 9.5. Considering its valuation and the aforementioned revenue growth, investors could have the catalyst needed to spark a long-awaited recovery in Unity stock.

Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Unity Software. The Motley Fool has a disclosure policy.

The management team is demonstrating meaningful improvement.

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Unity Software Inc. (U - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Unity Software Inc. currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for U that show why this company shows promise as a solid momentum pick.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For U, shares are up 7.56% over the past week while the Zacks Internet - Software industry is up 1.04% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 56.48% compares favorably with the industry's 4.38% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of Unity Software Inc. have risen 74.6%, and are up 25.54% in the last year. In comparison, the S&P 500 has only moved 4.19% and 20.55%, respectively.

Investors should also take note of U's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now U is averaging 12,448,661 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with U.

Over the past two months, 5 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost U's consensus estimate, increasing from $1.03 to $1.21 in the past 60 days. Looking at the next fiscal year, 6 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineGiven these factors, it shouldn't be surprising that U is a #2 (Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Unity Software Inc. on your short list.

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Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Handelsbanken Fonder AB raised its position in shares of Unity Software Inc. (NYSE: U) by 12.2% during the undefined quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 104,100 shares of the company's stock after buying an additional 11,300 shares during the quarter. Handelsbanken Fonder

TINTON FALLS, N.J.--(BUSINESS WIRE)--Jersey Mike's Subs Inc. ("Jersey Mike's" or the "Company") (NYSE: JMKE) today announced the appointment of Matthew Bromberg to its Board of Directors, effective July 29, 2026. Mr. Bromberg currently serves as President and Chief Executive Officer of Unity Software, Inc. (NYSE: U), where he leads the company's global strategy and operations, and brings extensive experience across technology, consumer businesses, and organizational growth. “Matt is an accompli.

Unity Software Inc (NYSE:U) shares moved higher on Friday after analysts at Wedbush and Bank of America raised their outlooks for the company, citing stronger-than-expected growth in its Vector advertising platform and the potential for further gains from the integration of runtime data.

Shares were up about 4% at $43 in Friday trading.

Wedbush raised its price target on Unity to $50 from $36 while reiterating its ‘Outperform’ rating. The firm wrote that the company’s “flywheel is beginning to turn,” pointing to accelerating growth in Vector and a business mix increasingly focused on the platform and Unity’s core game engine following the sunset of the ironSource Ad Network and the sale of Supersonic.

Unity reported second quarter revenue of $546 million, up 24% year over year and 8% sequentially. The result exceeded the firm’s $510 million estimate, the $515 million consensus estimate and Unity’s guidance range of $505 million to $515 million.

Strategic revenue, which excludes ironSource and Supersonic, increased 38% year over year to $486 million. Strategic Grow revenue rose 63% to $329 million, while Strategic Create revenue increased 5% to $157 million.

Adjusted EBITDA increased 77% year over year to $160 million, above Wedbush’s $132 million estimate, while non-GAAP earnings of $0.28 per share exceeded consensus of $0.25. Free cash flow increased to $202 million from $127 million a year earlier, and Unity ended the quarter with $2.4 billion in cash.

Wedbush highlighted 20 major Vector updates released during the quarter, including the incorporation of runtime data and a shift to Day-28 return on ad spend, or ROAS, from seven days previously. The firm wrote that the change drove a threefold sequential increase in user-acquisition spending.

For the third quarter, Unity guided to strategic revenue of $540 million to $550 million, including Strategic Grow revenue of $380 million to $385 million. Adjusted EBITDA is expected at $185 million to $190 million.

Wedbush wrote that the contribution from runtime data should become more significant in the second half of the year and beyond, prompting the firm to raise its longer-term estimates. It now expects fiscal 2028 adjusted EBITDA of $1.35 billion, compared with its previous estimate of $915 million.

Bank of America also upgraded Unity to ‘Buy’ from ‘Neutral’ and raised its price objective to $50 from $30. The firm wrote that the latest results provide an early indication that runtime data is improving the effectiveness of Vector’s targeting model and could support sustained growth through the end of 2027.

Bank of America noted that Vector revenue increased 23% sequentially in the second quarter, with growth benefiting from the rollout of the Day-28 ROAS product and the integration of runtime data.

The firm expects Vector to maintain sequential growth of more than 20% in both the third and fourth quarters, compared with its previous expectations for a more gradual slowdown. Bank of America wrote that Unity’s third-quarter guidance could prove conservative because it does not reflect an acceleration despite a full quarter of runtime data contribution.

Bank of America raised its 2027 adjusted EBITDA estimate to $1.29 billion from $789 million, based on continued growth in Vector and further expansion of the runtime data set. The firm wrote that additional success with runtime data could provide further upside to its estimates.

4:15pm: Winning week Wall Street wrapped up the week on a strong note Friday, with all three major averages climbing as investors cheered a softer-than-expected US jobs report and scaled back expectations for further Federal Reserve rate hikes.

The Dow gained 152 points, or 0.3%, to close at 54,037. The S&P 500 advanced 48 points, or 0.6%, to finish at 7,758, while the Nasdaq jumped 342 points, or 1.3%, ending the session at 26,691.

The gains capped off a winning week for the major indexes. The Nasdaq led the charge with a roughly 5% weekly gain, while the S&P 500 climbed nearly 3.5% and the Dow also finished higher.

Stocks rallied after the July nonfarm payrolls report showed the US economy unexpectedly lost 23,000 jobs, sharply missing economist expectations for an 83,000 increase. Investors viewed the weaker labor market data as a sign that the Federal Reserve may have less urgency to raise interest rates at its September meeting.

Treasury yields moved sharply lower following the report, adding further support to equities, particularly growth and technology stocks that tend to benefit from lower borrowing costs.

Looking ahead, investors will turn their attention to next week’s inflation data, with expectations that July consumer price pressures remained relatively contained, although some inflationary pressures could remain concentrated in specific sectors. Retail sales are also expected to show modest growth, while the housing market continues to face pressure from elevated mortgage rates.

The earnings calendar will remain active, with results expected from companies including Applied Materials, Cisco, Barrick Mining Corporation and Rocket Lab.

3:45pm: Proactive news headlines American Resources Corp (NASDAQ:AREC) said its ReElement Technologies affiliate successfully commissioned its first commercial-scale germanium production column, marking a key milestone in scaling its chromatography-based refining process. RBC Capital Markets initiated coverage of Pan African Resources PLC (LSE:PAF, OTCQX:PAFRY, JSE:PAN) with an Outperform rating and a 155p price target, citing expected production growth and rising EBITDA through the end of the decade. Standard Uranium Ltd (TSX-V:STND, OTCQB:STTDF, FRA:9SU0) secured a C$3 million strategic investment through a non-brokered private placement with a Southeast Asian conglomerate, which will acquire a nearly 20% stake in the company. 2:40pm: Market movers Unity Software Inc (NYSE:U) shares rose after Wedbush and Bank of America lifted their outlooks, citing strong growth in its Vector advertising platform and further upside from runtime data integration. Atlassian (NASDAQ:TEAM) shares surged more than 30% after the software company reported better-than-expected fourth-quarter revenue and cloud growth and issued a stronger fiscal 2027 cloud revenue outlook. Lyft Inc (NASDAQ:LYFT) shares gained after the ride-hailing company reported second-quarter revenue and gross bookings that beat expectations alongside continued growth in riders and trips. Canopy Growth Corporation (TSX:WEED, NYSE:CGC) shares climbed after the cannabis company posted stronger-than-expected first-quarter revenue growth and narrowed its adjusted EBITDA loss. Under Armour Inc (NYSE:UA) shares fell after the apparel maker reported an earnings beat but slightly missed revenue expectations and issued a more cautious full-year outlook. Oklo shares jumped despite reporting a wider-than-expected quarterly loss as revenue significantly exceeded analyst estimates. Twilio shares soared after the communications software company delivered second-quarter earnings and revenue that topped Wall Street expectations. Trade Desk Inc (NASDAQ:TTD) shares plunged after the digital advertising company missed second-quarter revenue and earnings estimates and issued weaker-than-expected third-quarter guidance. Cloudflare shares were set to rally after the cloud connectivity company reported second-quarter results that exceeded expectations and provided stronger-than-expected guidance for the current quarter. 1:30pm: 'Impossible to justify' rate hike deVere Group CEO Nigel Green says the scale of the jobs miss removes almost any realistic path to a September rate increase.

"A jobs report this weak, layered on top of two months of substantial downward revisions, makes a hike next month almost impossible to justify.

"Three consecutive months of softening data is not noise. It’s a labour market losing momentum in a way policymakers cannot responsibly ignore."

The deVere CEO added that markets are already repricing accordingly.

"Gold was rallying into this release, and reports of weak hiring will likely extend that move further.

“When a currency loses support at the same time a safe-haven asset gains it, that combination tells you plainly which way sentiment has shifted."

12:05pm: Atlassian (NASDAQ:TEAM) surges Atlassian (NASDAQ:TEAM) (Atlassian (NASDAQ:TEAM)) shares jumped more than 30% on Friday after the software maker posted fourth-quarter revenue and cloud growth that topped analyst estimates and issued a stronger-than-expected cloud revenue outlook for fiscal 2027.

Revenue for the quarter came in at $1.8 billion, up 28% from a year earlier and above the $1.66 billion analysts had expected.

Cloud revenue rose 31% to $1.2 billion, while subscription annual recurring revenue climbed 23% to $6.6 billion. Remaining performance obligations, a measure of contracted future revenue, grew 44% to $4.8 billion.

Jefferies raised its price target on the stock to $200, citing accelerating backlog growth and what it called a cheap valuation relative to peers. The brokerage pointed to cross-selling from Atlassian (NASDAQ:TEAM)'s Service Collection and Teamwork Collection products, along with seat expansion within Jira and Confluence, as drivers of the beat.

11:00am: Mixed signals Analysts largely viewed the weaker-than-expected July jobs report as reinforcing expectations that the Federal Reserve will keep interest rates unchanged, despite a surprise decline in nonfarm payrolls.

Jamie Cox, managing partner at Harris Financial Group, said the loss of 23,000 jobs validated the Fed's decision not to raise rates in July. “While I expect this weakness to be temporary, the softening labor market remains one of my biggest concerns for the economy,” Cox said.

Jeffrey Roach, chief economist at LPL Financial, described the labor market slowdown as "orderly," noting that labor stress indicators remain historically low.

“Today’s jobs report is likely to support risk appetite,” Roach said. “However, the decline in the unemployment rate will complicate the Fed’s decision process because the economy appears to be at full employment.”

Bill Adams, chief US economist at Fifth Third Commercial Bank, said the report reflects slower job growth but a labor market that continues to tighten because of a shrinking labor force.

“The Fed will see the unemployment rate’s further decline in July as a reason to look past the month’s weak payrolls print and continue to focus on controlling inflation,” Adams said.

“The July CPI release will influence the Fed’s September decision more than the month’s jobs report.”

10:00am: Jobs surprise lifts markets Wall Street opened higher on Friday after a surprisingly weak July jobs report reinforced expectations that the Federal Reserve may be nearing the end of its tightening cycle. The Nasdaq climbed 0.7%, while the S&P 500 gained 0.3% and the Dow Jones Industrial Average added 0.2%.

The July employment report showed the US economy lost 23,000 jobs, far below expectations for an increase of 80,000, signaling that the labor market may be losing momentum. Investors viewed the data as reducing the likelihood of additional interest rate hikes this year, lifting equities at the open.

Charlie Ripley, Senior Investment Strategist at Allianz Investment Management, said the sharp payroll miss shifts the market's focus back to the employment side of the Federal Reserve's mandate. "This report squarely puts the spotlight back on the employment side of the Fed's mandate," Ripley said. "The Fed is unlikely to ignore this signal, and, if anything, it raises the bar for any Fed rate increases heading into the fall."

Among individual stocks, Trade Desk plunged after the digital advertising company reported weaker-than-expected earnings and revenue and issued disappointing guidance. Meta Platforms was also in focus after being ordered to pay nearly $1 billion over claims related to harm caused to children through social media.

Looking ahead, markets will also keep an eye on June consumer credit data for additional clues on the strength of consumer spending.

9:00am: Payrolls unexpectedly contract in July The US labor market unexpectedly weakened in July as nonfarm payrolls fell by 23,000, marking the first monthly decline in employment in years and missing expectations for an 80,000-job gain. Private payrolls increased by just 30,000, well below forecasts of 82,000, while May and June payrolls were revised down by a combined 103,000 jobs.

The unemployment rate edged down to 4.1% from an expected 4.2%, although average hourly earnings rose just 0.1% month-over-month and 3.2% year-over-year, both below forecasts. The labor force participation rate slipped to 61.4% from an expected 61.6%, while the average workweek held steady at 34.3 hours.

The weaker-than-expected employment report prompted investors to sharply scale back expectations for a Federal Reserve interest rate hike in September, with market-implied odds falling significantly following the release.

Payrolls day Good morning, and welcome to payrolls day, the Friday each month when Wall Street stops talking over itself to stare at one spreadsheet.

US stock futures nudged higher ahead of the July jobs report, due at 8.30 am eastern time.

Dow futures were essentially flat, the S&P 500 added 0.2% and the Nasdaq-100 rose 0.5%, which counts as enthusiasm after Thursday's muddle.

Economists surveyed by Bloomberg expect 80,000 positions were added last month, with unemployment parked at 4.2%.

Not thrilling, but the labour market has been quietly stable while everyone shouted about inflation and artificial intelligence spending.

The Federal Reserve will be reading closely as it weighs its next move on interest rates.

Oil, meanwhile, kept climbing because the US and Iran still have not shaken hands.

An Iranian semi-official news agency reported explosions in the Strait of Hormuz on Thursday night, blamed on the interception of "hostile targets".

Iran and Oman are still working towards reopening the waterway, though the latest word is US and Israeli ships need not apply.

What all that does to inflation expectations is Friday's other question, with the New York Fed's one-year survey also landing.

Earnings are thin: Vistra, Oklo, Under Armour and Wendy's.

Key Takeaways Unity Software topped Q2 EPS and revenue estimates as revenue rose 24% year over year.U's Strategic Revenue grew 38%, led by Unity Vector and strong Strategic Grow performance.Unity expects GAAP profitability in Q3 2026 and guided for strong Strategic Revenue growth. Unity Software (U - Free Report) reported second-quarter 2026 adjusted earnings per share (EPS) of 28 cents, marking a 55.6% increase year over year. The figure beat the Zacks Consensus Estimate by 16.67%.

On a GAAP basis, the company posted a net loss of $23 million, or 5 cents per share, narrower than a net loss of $107 million, or 26 cents per share, in the year-ago quarter. GAAP net loss margin improved to (4)% from (24)% a year earlier.

Net revenues of $546.47 million rose 24% year over year. The figure beat the consensus mark by 6.77%.

Total Strategic Revenue, which excludes the ironSource Ads Network and Supersonic, grew 38% year over year to $486.41 million and accounted for 89% of total revenues, up from roughly 80% a year earlier. Non-Strategic Revenue fell 33% year over year to $60.06 million as the company continued to wind down its non-core ad and publishing businesses.

Q2 Details of Unity SoftwareUnity Software reported Create Solutions revenues of $158 million, up 2% year over year. The increase was driven by higher subscription revenues, partially offset by declines in cloud and hosting services revenues tied to the company's 2025 portfolio reset. Strategic Create Revenue, which excludes non-strategic items, was $157.46 million, up 5% year over year, or up 14% year over year excluding the impact of a $12 million one-time revenue item recorded in the second quarter of 2025.

Grow Solutions revenues were $389 million, up 35% year over year. The growth was driven by the Unity Ads Network, propelled by Unity Vector, partially offset by declines in the ironSource Ads Network. Strategic Grow Revenue was $328.96 million, up 63% year over year, again outpacing total Grow growth and reflecting Vector's continued momentum.

Operating Details of UnityIn the second quarter, adjusted gross profit increased 24% year over year to $453.25 million. Adjusted gross margin was 83%, flat year over year.

Research & development expenses on an adjusted basis grew 17.2% year over year to $161.1 million. Adjusted R&D, as a percentage of revenues, contracted 100 basis points to 30%.

Sales and marketing expenses on an adjusted basis declined 2.2% year over year to $94.06 million. Adjusted S&M, as a percentage of revenues, contracted 500 basis points to 17%.

General & administrative expenses on an adjusted basis decreased 8.6% year over year to $37.9 million. Adjusted G&A, as a percentage of revenues, contracted 200 basis points to 7%.

Unity Software reported adjusted EBITDA of $160.19 million, up 77% year over year. The company's adjusted EBITDA margin of 29% improved 800 basis points compared with the prior year, driven by higher revenues and continued cost control.

Net loss for the quarter (before noncontrolling interest allocation) was $22.67 million, narrowing 78.9% year over year from a net loss of $107.37 million in the year-ago quarter.

Unity Software's Balance Sheet & Cash FlowAs of June 30, 2026, Unity had cash, cash equivalents and restricted cash of $2.357 billion compared with $2.15 billion as of March 31, 2026.

Operating cash flow was $205.62 million in the reported quarter, up 54.5% year over year from $133.1 million in the year-ago quarter. Free cash flow during the quarter was $201.96 million, up 59.5% year over year from $126.65 million in the prior-year quarter.

The current portion of convertible notes was $557.17 million as of June 30, 2026.

Significant Q2 DevelopmentsUnity Software completed the sunset of the ironSource Ads Network, effective April 30, 2026, as previously announced. Subsequent to quarter-end, on Aug. 4, 2026, the company completed the sale of its Supersonic mobile game publishing business; second-quarter Non-Strategic Revenue and third-quarter guidance each incorporate roughly one month of residual Supersonic contribution.

Management noted that Unity Vector, the company's AI-powered advertising platform, continues to be a primary growth driver behind the sharp acceleration in Strategic Grow Revenue, and that the company has begun incorporating behavioral data from the Unity runtime — which reaches billions of monthly players across games built on the platform — into Vector's models as a further competitive differentiator.

The company now expects to reach GAAP profitability in the third quarter of 2026, moved up from its prior target of the fourth quarter of 2026. Management also reiterated plans to repay its 2021 convertible notes in November 2026 as part of continued balance-sheet deleveraging, and indicated that the completed Supersonic divestiture and ironSource Ads Network wind-down are expected to support faster revenue growth and materially higher profitability in the second half of 2026.

Unity Software's Guidance for Q3 2026For the third quarter of 2026, Unity Software anticipates Strategic Revenue between $540 million and $550 million, implying a rise of 44-47% year over year. Within that, Strategic Grow Revenue is expected between $380 million and $385 million, suggesting an increase of 68-70% year over year, and Strategic Create Revenue is guided in the range of $159-$163 million, indicating a rise of 7-10% year over year.

Non-Strategic Revenue is expected to be approximately $20 million, reflecting roughly one month of residual revenues from the divested Supersonic business.

Adjusted EBITDA is expected in the range of $185-$190 million, indicating year-over-year growth of 69-74%.

Zacks Rank & Other Stocks to ConsiderUnity Software currently carries a Zacks Rank #2 (Buy).

Kimball Electronics (KE - Free Report) , Quantum (QMCO - Free Report) and Lumentum (LITE - Free Report) are among the top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Currently, Kimball Electronics sports a Zacks Rank #1 (Strong Buy), while Quantum and Lumentum carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.

 Kimball Electronics shares have inched up 1.8% in the past six months. KE is scheduled to report its fiscal fourth-quarter 2026 results on Aug. 13.

 Quantum's shares have surged 96% in the past six months. QMCO is scheduled to report its fiscal first-quarter 2027 results on Aug. 10, 2026.

 Lumentum shares have gained 48.9% in the past six months. LITE is slated to report its fiscal fourth-quarter 2026 results on Aug. 11.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Unity Software Inc. (U - Free Report) .

Unity Software currently has an average brokerage recommendation (ABR) of 1.73, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 26 brokerage firms. An ABR of 1.73 approximates between Strong Buy and Buy.

Of the 26 recommendations that derive the current ABR, 16 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 61.5% and 3.9% of all recommendations.

Brokerage Recommendation Trends for U

Check price target & stock forecast for Unity Software here>>>

While the ABR calls for buying Unity Software, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is U a Good Investment?In terms of earnings estimate revisions for Unity Software, the Zacks Consensus Estimate for the current year has increased 2.3% over the past month to $1.04.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Unity Software. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Unity Software may serve as a useful guide for investors.