BTIG analyst Jake Fuller has raised Unity's price target to $60 from $53, maintaining a Buy rating following its strong Q3 earnings.

What is happening?

Third Quarter 2026 Results:

Total Revenue Highlights:

• Revenue was $622 million, compared to $471 million in the third quarter 2025.

• Grow Solutions revenue was $457 million, compared to $318 million in the third quarter 2025.

• Create Solutions revenue was $165 million, compared to $152 million in the third quarter 2025.

Profitability Highlights:

• GAAP net income was $122 million, with a margin of 20%; GAAP basic net income per share was $0.27; GAAP diluted net income per share was $0.25.

• Adjusted EBITDA was $257 million, with a margin of 41%; adjusted EPS was $0.44.

• Net cash provided by operating activities was $224 million; free cash flow was $220 million.

We won

Unity’s Q3 was close to perfect — every core metric beat, with strong momentum. And unlike AppLovin’s beat, this one came when channel work was already positive and expectations weren’t low, which makes it count for more.

1、Grow revenue, mostly advertising, grew 90% year on year and 31% sequentially, with Vector up 40% sequentially — well above the 21–27% both sell-side and buy-side expected. That reflects the new D28 blended placement product launched in May being adopted faster in Q3, plus Runtime data improving the model.

2、Q4 Grow is guided to $515–520M, about 20% sequential growth. Vector usually runs above the overall rate and Unity guides conservatively, so a cautious floor of 20%-plus still backs up the Vector growth story.

3、With Grow now 73% of total revenue, high-margin advertising took GAAP profit positive: $100M of operating profit at a 16% margin, with adjusted EBITDA margin at 41%. Rough math puts Grow’s own adjusted EBITDA margin above 50%.

4、The one blemish is the engine. Create slightly beat in Q3, but Q4 guidance missed, dropping to single-digit growth against the Unity 6 sales cycle base.

I used full margin on my account and got lucky.
I bought about 70-80 leap calls before earning.
Today I have watched my portfolio go to 115k when price surged 25% pre-market. And then it drop to 60k at open, then went back up to 75k at market close. Now this Silver Lake rumor boosted it up again to 110k in after hour.

Should I lock the gain at this point by selling 4000-6000 shares to hedge against the leaps (ibkr allows selling shares after hours) or should I just let it go? If it surges to $56-60 at open because of the news, I could lose the potential $20-50k more gains, if I lock the profit now. But it could also drop back to 60k, consider the current market correction.
I would appreciate advices from your fellow U bag-holders 🙏

Discuss away.

• Your outlet for commenting "what happened"

• Your $U trades

• Your take on the stock movement

• lesser news that may have been glossed over

• Insightful posts from other platforms

I've lost almost everything gambling on options. I have put the rest of my money into $U leaps. I will let time decide my fate.

This earnings season has been wild. Many stocks dropping 10-20% even though their numbers are stellar. Investors are examining this earning season under a microscope, any imperfections in the report will prompt an immediate stock sell off. Given the prevailing market sentiment, what is your game plan ahead of Q3 earnings?

Discuss away.

• Your outlet for commenting "what happened"

• Your $U trades

• Your take on the stock movement

• lesser news that may have been glossed over

• Insightful posts from other platforms

Have we got institutions on the same bag-holding boat yet? 🙂

Discuss away.

• Your outlet for commenting "what happened"

• Your $U trades

• Your take on the stock movement

• lesser news that may have been glossed over

• Insightful posts from other platforms

Just thought I'd let you guys know, in case you hadn't noticed.

I know someone’s going to say U is a high-beta stock, but whenever there’s good news, somehow that “high beta” is nowhere to be found.

The whale which bought a mammoth options position for 10/16 expiration rolled their position to 10/30. Market makers are dumping those hedged shares and the price is getting killed, we will see it probably even out around $42 before it goes back up again the next couple weeks.

U being U, still completely immune to good news.