Unity Software to Post Q4 Earnings: What's in the Cards for the Stock?

Unity Software U is slated to release its fourth-quarter 2025 results on Feb. 11, 2026.

For the fourth quarter, revenues are expected in the range of $480-$490 million.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $490.23 million, indicating a 7.25% increase from the figure reported in the year-ago quarter.

The consensus mark for earnings is pegged at 20 cents per share, which remained unchanged over the past 30 days. This figure represents a sharp year-over-year improvement from a loss of 30 cents.

Unity Software surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters, while missing once, with an average positive surprise of 19.49%.

Unity Software Inc. Price and EPS Surprise

Unity Software Inc. price-eps-surprise | Unity Software Inc. Quote

Let us see how things are shaping up for the upcoming announcement.

Key Factors to Note Ahead of U’s Q4 Results

Vector AI is solidifying its role as a primary growth engine within Unity Software’s Grow segment, driven by scalable improvements in ad targeting, model intelligence and advertiser performance that accelerated momentum in the previous quarter. Vector’s self-learning architecture continues to enhance outcomes across formats and geographies, with early success extending into adjacent Grow offerings. In fourth-quarter 2025, sustained advertiser demand and continued Vector enhancements are expected to have supported further sequential expansion. Collectively, these dynamics suggest Vector as a meaningful near-term catalyst, potentially contributing to improved Grow’s revenue visibility and operating leverage.

Unity Software’s Create subscription business is demonstrating durable growth supported by ARPU gains from prior pricing actions, rising Unity 6 adoption and strong momentum in China, while the exit of non-strategic revenue improves quality and visibility. Excluding those non-core items, subscription growth accelerated meaningfully, reflecting better product engagement and customer retention. These factors are likely to have supported revenue consistency and margin quality in the quarter under review, reinforcing the segment’s role as a stabilizing growth contributor.

Unity Software’s cross-platform commerce layer, Unity IAP, allows developers to manage global in-app purchases, catalogues and payment providers directly within the engine, aligning with a more open app-store environment and the company’s large mobile ecosystem. Early adoption strengthens developer ties and encourages publishers to reinvest savings into growth efforts like user acquisition, which can indirectly support Grow’s engagement. These adoption trends are expected to have strengthened platform stickiness and monetization pathways, positioning Unity Software to capture additional platform activity.

Despite these operational tailwinds, Unity Software entered fourth-quarter 2025 with a structurally high operating cost base that continues to pressure profitability despite revenue momentum. In the prior quarter, operating expenses exceeded gross profit, resulting in a sizable operating loss and underscoring the ongoing R&D, sales and administrative intensity required to support the platform. Management also indicated additional fourth-quarter spending tied to its Unite conference and sales initiatives. These elevated costs are likely to have weighed on margins and may have constrained bottom-line performance in the to-be-reported quarter.

What Our Model Says About U Stock

Our proven model does not conclusively predict an earnings beat for Unity Software this time around. Per the Zacks model, 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. However, this is not the case here, as you can see below.

Unity Software currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

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:

IPG Photonics IPGP currently has an Earnings ESP of +15.08% and sports a Zacks Rank #1. IPGP shares have surged 62.6% in the trailing 12 months. It is set to report its fourth-quarter 2025 results on Feb. 12, 2026. You can see the complete list of today’s Zacks #1 Rank stocks here.

Analog Devices ADI has an Earnings ESP of +2.98% and a Zacks Rank #2 at present. ADI shares have gained 56.4% in the trailing 12 months. ADI is set to report its first-quarter fiscal 2026 results on Feb. 18.

Applied Materials AMAT presently has an Earnings ESP of +3.06% and a Zacks Rank #2. AMAT shares have soared 75.6% in the trailing 12 months. AMAT is set to report its first-quarter fiscal 2026 results on Feb. 12.

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This article originally published on Zacks Investment Research (zacks.com).

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