Unity Software rises over 8% pre-market, maintained at buy by Jefferies

Unity Software rises over 8% pre-market, maintained at buy by Jefferies

Unity Software (NYSE: U) saw its stock price surge by over 8% in the pre-market session on July 2, 2025. The stock closed at $29.22, moving +1% from the previous trading session. This performance outpaced the broader market indices, with the S&P 500 registering a gain of 0.14%, the Dow appreciating by 0.2%, and the tech-heavy Nasdaq increasing by 0.27% [1].

Over the past month, shares of Unity Software have gained 22.27%, significantly outperforming the Computer and Technology sector's gain of 5.36% and the S&P 500's gain of 3.97%. The investment community is closely monitoring the company's forthcoming earnings report, with analysts projecting earnings per share (EPS) of -$0.26, a 18.75% increase from the same quarter last year [1].

Unity Software's revenue is expected to be $425.02 million, marking a 5.4% decrease compared to the year-ago quarter. For the annual period, Zacks Consensus Estimates anticipate earnings of -$0.81 per share and a revenue of $1.79 billion, reflecting shifts of +51.79% and -1.31%, respectively, from the last year [1].

Jefferies analysts maintain a buy rating on Unity Software, attributing the positive outlook to the company's strategic transformation and focus on profitable segments. The new management, led by CEO Matthew Bromberg, has demonstrated cost discipline and developer alignment, which are expected to drive the turnaround [2].

The company's recent partnerships, such as the one with Genies to bring AI avatars and user-generated content (UGC) tools to developers, and the selection of Optable to power the Unity Audience Hub, are seen as catalysts for growth. The Audience Hub has already doubled engagement for brand campaigns, unlocking privacy-first advertising across mobile and connected TV (CTV) [3].

Unity Software's AI-driven advertising platform, Unity Vector, is also expected to improve ad performance through machine learning models that better leverage data. The company's strategic transformation and focus on profitable segments are seen as positive signs for investors [4].

References:
[1] https://stockanalysis.com/stocks/u/
[2] https://finance.yahoo.com/news/unity-software-inc-u-beats-215005780.html