Unity Stock Plunges 26% After Q1 Forecast Misses, Despite Q4 Beat

Overview

• Unity projected Q1 2026 revenue of $480 million to $490 million, below the $492 million Wall Street estimate.
• Management guided Q1 EBITDA to $105 million–$110 million versus the $116.9 million analyst forecast, pointing to margin pressure.
• The outlook implies flat-to-down sequential revenue versus Q4’s $503.1 million, a break from typical growth-software seasonality.
• Shares dropped about 26% in premarket trading following the guidance; the stock had fallen 34% year-to-date and had risen roughly 49.5% over the past year.
• Investors highlighted Google’s Project Genie as a potential long-term threat to traditional development platforms as management offered limited detail on near-term demand drivers.