New York, February 12, 2026, 06:45 (EST) — Premarket
- In early premarket trading, Unity shares remained close to Wednesday’s closing price.
- The recently reported quarter was clouded by a light revenue forecast for the first quarter.
- Analysts have lowered their targets amid investor concerns over Unity’s shift in ad tech and upcoming product milestones.
Unity Software Inc shares hovered around $21.41 in premarket trading Thursday, barely moving after a sharp 26.3% drop the day before. The videogame engine developer projected first-quarter revenue between $480 million and $490 million, falling short of the $492.1 million analysts expected, according to Reuters. (Investing)
The guidance miss comes at a tough time for Unity. Its stock has plunged over 50% this year, amid investor concerns that generative AI might replace some world-building tasks currently driven by Unity’s engine, Barron’s reported. (Barron’s)
Unity offers software that powers the creation and expansion of games and interactive experiences on mobile, PC, consoles, and extended reality platforms. Its performance often signals the mood among developers and the mobile advertising ecosystem supporting numerous free-to-play titles. (Unity Technologies)
Unity posted $503 million in revenue for the fourth quarter, up from $457 million the previous year. Create Solutions brought in $165 million, while Grow Solutions contributed $338 million. Adjusted earnings came in at 24 cents per share, with adjusted EBITDA hitting $125 million—a rough gauge of cash profit before interest, taxes, depreciation, and amortization. CEO Matt Bromberg highlighted that Unity 6 is being adopted faster than ever. (Unity Technologies)
During the earnings call, Bromberg noted that the legacy ironSource ad network will drop to under 6% of total revenue in Q1, as the company shifts focus to Vector, its AI-powered ad platform. Unity also plans to integrate more runtime engine data into Vector, aiming to activate this in the second quarter, according to management. (The Motley Fool)
Unity announced in a separate board update that gaming veteran Bernard Kim joined as an independent director starting May 1, 2026. At the same time, co-founder David Helgason and director Tomer Bar-Zeev stepped down. Chairman Jim Whitehurst highlighted Kim’s “deep experience building and scaling global, public companies” in gaming and technology. (SEC)
Barclays lowered its price target on Unity to $28 from $35, maintaining an equal-weight rating—about on par with the broader market, Investing.com reported. The bank pointed to uncertainty around AI “world models,” which create interactive environments, as a key concern weighing on how investors price the game-engine company. (Investing)
BTIG cut its price target to $41 from $60 but maintained a buy rating, flagging that ironSource’s phase-out might significantly slow revenue growth in 2026, despite potential boosts to profitability. The firm pegged the potential revenue hit at over $150 million. (Investing)
Citizens lowered its price target to $37 from $50 but maintained a market outperform rating, signaling confidence the stock will outpace rivals. It highlighted upcoming catalysts, including the integration of runtime data into Vector in Q2. The firm also noted that Unity’s Commerce Platform enters early access next week, marking a key step as the stock seeks stability following Wednesday’s sell-off. (Investing)
