What’s Going On With Unity Stock Friday?

by | Feb 13, 2026 | General

Unity Software Inc (NYSE:U) shares are tumbling on Friday following a disappointing outlook for the first quarter, which has raised concerns among investors. Here’s what investors need to know.

Strong Quarter, Weak Outlook

Unity Software on Wednesday reported strong fourth-quarter results, including total revenue of $503 million, surpassing consensus estimates. However, the company’s guidance for the first quarter fell short, projecting revenue between $480 million and $490 million, which is below analyst expectations.

Analysts have noted that the company’s sequential growth in its advertising segment, Vector/Unity Ads, was only 15%, missing the anticipated 20%. Additionally, there are concerns regarding the potential closure of the ironSource ad operation, which could impact future revenue growth.

Technical Weakness Deepens Further

The technical indicators paint a concerning picture for Unity. The stock is currently trading 43% below its 20-day simple moving average (SMA) and 52% below its 100-day SMA, indicating significant weakness in its price action.

Over the past 12 months, shares have decreased by 7.62%, and they are currently positioned closer to their 52-week lows than highs.

Price with Moving Averages Chart for U - Chart ID price-ma-U-1771010852322-7n58svlam

The RSI is at 24.55, indicating that the stock is oversold, while the MACD is below its signal line, suggesting bearish momentum. This combination of indicators highlights a challenging environment for Unity, as it struggles to gain traction in the current market.

RSI Heatmap Timeline Chart for U - Chart ID rsi-hm-U-1771010853300-gr7dxuq2z
  • Key Resistance: $20.00
  • Key Support: $15.50

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Unity Software, highlighting its strengths and weaknesses compared to the broader market:

  • Momentum: 8.84 — The stock is showing weak momentum.

Analysts Trim Price Targets

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $38.13. Recent analyst moves include:

  • Macquarie: Outperform (Lowers Target to $37.00) (Feb. 12)
  • Citigroup: Buy (Lowers Target to $43.00) (Feb. 12)
  • UBS: Neutral (Lowers Target to $26.00) (Feb. 12)

Unity Software Shares Drop Friday

U Price Action: Unity Software shares were down 4.15% at $18.83 at the time of publication on Friday, according to Benzinga Pro data.

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