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Unity Software to Report Q1 Earnings: What's in Store for the Stock?
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Key Takeaways
Unity preannounced Q1 revenues of $505-$508M, topping prior guidance of $480-$490M.
U expects adjusted EBITDA of $130-$135M, with 58% YoY growth at midpoint.
Unity projects 48% Strategic Grow growth as Vector expands faster than earlier forecasts.
Unity Software (U - Free Report) is slated to report first-quarter 2026 results on May 7.
On its fourth-quarter 2025 release in February, Unity Software initially guided first-quarter revenues of $480-$490 million and adjusted EBITDA of $105-$110 million, with Grow flat sequentially, Create delivering double-digit year-over-year growth excluding non-strategic revenues, and Vector projected to grow 10% sequentially. Management has reaffirmed its goal for Vector to exit 2026 at an annualized run rate comfortably above $1 billion.
On March 26, 2026, Unity Software preannounced preliminary first-quarter results well above guidance. Revenues are now broadly expected to be in the range of $505-$508 million, with adjusted EBITDA of $130-$135 million, suggesting 58% year-over-year growth at the midpoint. Grow revenues have been projected at roughly $352 million and Create at around $155 million, while Vector is expected to expand 15% sequentially. Strategic Grow revenues, which excludes the ironSource Ads Network and Supersonic, are set to climb 48% year over year, with Strategic Create up 14%.
The Zacks Consensus Estimate is pegged at $500.57 million, indicating an increase of 15.07% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at 24 cents per share, which has remained unchanged in the past 30 days. The company had reported a loss of 19 cents per share in the year-ago period.
In the last reported quarter, the company delivered an earnings surprise of 20%. The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same once, the average surprise being 20.91%.
Several first-quarter actions have shaped the upcoming print. On the pricing front, Unity Software raised its Pro and Enterprise subscription plans by 5% effective Jan. 12, 2026, lifting Pro from $2,200 to $2,310 per seat for the yearly plan and from $200 to $210 for the monthly plan. Existing subscribers will see the new pricing applied at their next renewal, with final amounts varying by region.
Additionally, pricing-and-packaging changes effective March 1, 2026, expanded the free monthly cloud-storage allowance from 5GB to 25GB, added 100GB of free monthly Egress, and removed seat charges for Unity Version Control hosted in the public cloud. The company also waived Egress charges for both March and April. While these moves should deepen platform stickiness and broaden Create adoption, they will likely mute near-term cloud monetization. The integrated in-app commerce platform remained in early access during the quarter, with general availability targeted for the second quarter.
On monetization, Unity Software preannounced on March 26 that the ironSource Ads Network will be sunset effective April 30, 2026, and that it has engaged a financial advisor to divest the Supersonic game publishing business. Minimal ironSource contribution is expected after the first quarter. Strategic Grow revenues, powered by Vector, are set to surge 48% year over year, twice the 24% pace expected for Total Grow, while Vector's preannounced 15% sequential expansion materially outpaced the 10% growth originally guided.
While Vector's mid-teens sequential momentum, accelerating Strategic Grow and a leaner emerging cost structure are clear positives, the planned ironSource sunset and Supersonic divestiture inject near-term revenue volatility and execution risk into reported Grow numbers. With margins post-divestiture, commerce-tools ramp and runtime-data integration into Vector still ahead, investors should consider holding existing positions or waiting patiently for a more attractive entry point before the May 7 print rather than chasing the recent rally.
Earnings Whispers for Unity
Our proven model does not conclusively predict an earnings beat for Unity Software this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:
Audioeye (AEYE - Free Report) has an Earnings ESP of +9.62% and a Zacks Rank #2 at present.
Audioeye shares have dropped 23.5% year to date. Audioeye is set to report first-quarter 2026 results on May 12.
NVIDIA (NVDA - Free Report) currently has an Earnings ESP of +0.24% and a Zacks Rank #2. NVDA shares have risen 6.4% year to date. NVDA is set to report first-quarter fiscal 2027 results on May 20.
MKS Inc. (MKSI - Free Report) presently has an Earnings ESP of +5.19% and a Zacks Rank #2.
MKSI shares have surged 74.8% year to date. MKSI is likely to report first-quarter 2026 results on May 6.
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Unity Software to Report Q1 Earnings: What's in Store for the Stock?
Key Takeaways
Unity Software (U - Free Report) is slated to report first-quarter 2026 results on May 7.
On its fourth-quarter 2025 release in February, Unity Software initially guided first-quarter revenues of $480-$490 million and adjusted EBITDA of $105-$110 million, with Grow flat sequentially, Create delivering double-digit year-over-year growth excluding non-strategic revenues, and Vector projected to grow 10% sequentially. Management has reaffirmed its goal for Vector to exit 2026 at an annualized run rate comfortably above $1 billion.
On March 26, 2026, Unity Software preannounced preliminary first-quarter results well above guidance. Revenues are now broadly expected to be in the range of $505-$508 million, with adjusted EBITDA of $130-$135 million, suggesting 58% year-over-year growth at the midpoint. Grow revenues have been projected at roughly $352 million and Create at around $155 million, while Vector is expected to expand 15% sequentially. Strategic Grow revenues, which excludes the ironSource Ads Network and Supersonic, are set to climb 48% year over year, with Strategic Create up 14%.
The Zacks Consensus Estimate is pegged at $500.57 million, indicating an increase of 15.07% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at 24 cents per share, which has remained unchanged in the past 30 days. The company had reported a loss of 19 cents per share in the year-ago period.
In the last reported quarter, the company delivered an earnings surprise of 20%. The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same once, the average surprise being 20.91%.
Unity Software Inc. Price and EPS Surprise
Unity Software Inc. price-eps-surprise | Unity Software Inc. Quote
Factors Shaping Unity’s Upcoming Results
Several first-quarter actions have shaped the upcoming print. On the pricing front, Unity Software raised its Pro and Enterprise subscription plans by 5% effective Jan. 12, 2026, lifting Pro from $2,200 to $2,310 per seat for the yearly plan and from $200 to $210 for the monthly plan. Existing subscribers will see the new pricing applied at their next renewal, with final amounts varying by region.
Additionally, pricing-and-packaging changes effective March 1, 2026, expanded the free monthly cloud-storage allowance from 5GB to 25GB, added 100GB of free monthly Egress, and removed seat charges for Unity Version Control hosted in the public cloud. The company also waived Egress charges for both March and April. While these moves should deepen platform stickiness and broaden Create adoption, they will likely mute near-term cloud monetization. The integrated in-app commerce platform remained in early access during the quarter, with general availability targeted for the second quarter.
On monetization, Unity Software preannounced on March 26 that the ironSource Ads Network will be sunset effective April 30, 2026, and that it has engaged a financial advisor to divest the Supersonic game publishing business. Minimal ironSource contribution is expected after the first quarter. Strategic Grow revenues, powered by Vector, are set to surge 48% year over year, twice the 24% pace expected for Total Grow, while Vector's preannounced 15% sequential expansion materially outpaced the 10% growth originally guided.
While Vector's mid-teens sequential momentum, accelerating Strategic Grow and a leaner emerging cost structure are clear positives, the planned ironSource sunset and Supersonic divestiture inject near-term revenue volatility and execution risk into reported Grow numbers. With margins post-divestiture, commerce-tools ramp and runtime-data integration into Vector still ahead, investors should consider holding existing positions or waiting patiently for a more attractive entry point before the May 7 print rather than chasing the recent rally.
Earnings Whispers for Unity
Our proven model does not conclusively predict an earnings beat for Unity Software this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Unity Software has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:
Audioeye (AEYE - Free Report) has an Earnings ESP of +9.62% and a Zacks Rank #2 at present.
Audioeye shares have dropped 23.5% year to date. Audioeye is set to report first-quarter 2026 results on May 12.
NVIDIA (NVDA - Free Report) currently has an Earnings ESP of +0.24% and a Zacks Rank #2. NVDA shares have risen 6.4% year to date. NVDA is set to report first-quarter fiscal 2027 results on May 20.
MKS Inc. (MKSI - Free Report) presently has an Earnings ESP of +5.19% and a Zacks Rank #2.
MKSI shares have surged 74.8% year to date. MKSI is likely to report first-quarter 2026 results on May 6.