Unity Software(NYSE:U), a global video game and interactive content developer, closed Friday at $19.45, up 13.54%. The stock rose after the company announced its preliminary Q1 2026 revenue would exceed guidance.
Trading volume reached 51.5 million shares, coming in more than 200% above its three-month average of 16.8 million shares. Unity Software IPO'd in 2020 and has fallen 74% since going public.
How the markets moved today
The S&P 500(SNPINDEX:^GSPC) fell 1.67% to 6,369, while the Nasdaq Composite(NASDAQINDEX:^IXIC) slipped 2.15% to 20,948. Among software infrastructure peers, Roblox(NYSE:RBLX) closed down 2.86% at $52.31, and AppLovin(NASDAQ:APP) ended at $381.20, down 2.56%, trailing Unity’s sharp gains.
What this means for investors
Today’s gains were a breath of fresh air for Unity Software investors. The stock is still down over 55% year-to-date, after artificial intelligence (AI) disruption fears, a CEO resignation, and a pricing backlash took their toll. Its strategic overhaul may now be paying off.
The company said its projected Q1 revenue guidance would be $505-$508 million, up from its earlier range of $480-$490 million. It also significantly increased its expected adjusted EBITDA. It credited Unity Vector, its AI ad platform, for its increased growth.
Unity Software also is streamlining its operations, closing down its ironSource Ads Network and selling its Supersonic games division. Bank of America and Morgan Stanley have both raised their price targets for the stock. Investors will be watching AI developments and Q2 guidance to see whether its recent growth is sustainable.
Should you buy stock in Unity Software right now?
Before you buy stock in Unity Software, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Unity Software wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $503,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,049,793!*
Now, it’s worth noting Stock Advisor’s total average return is 898% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 27, 2026.
Bank of America is an advertising partner of Motley Fool Money. Emma Newbery has positions in Unity Software. The Motley Fool has positions in and recommends Roblox and Unity Software. The Motley Fool has a disclosure policy.
