U to Report Q2 Earnings: What's in the Cards for the Stock?

Unity Software U is scheduled to report its second-quarter 2026 results on Aug. 06, 2026.

For the second quarter, Unity expects total net revenues between $505-$515 million. Strategic revenue is expected in the range of $455-$465 million, implying a rise of 29-32% year over year. Within that, Strategic Growth revenue is expected between $302 million and $306 million, suggesting an increase of 50-52% year over year and Strategic Create revenue is guided in the range of $154-$158 million, indicating a rise of 11-14% year over year.

Adjusted EBITDA is expected in the range of $130-$135 million, indicating year-over-year growth of 44-49%.

The Zacks Consensus Estimate for second-quarter 2026 revenues is pegged at $511.84 million, suggesting 16.08% year-over-year growth.

The consensus mark for earnings is pegged at 24 cents per share, unchanged over the past 30 days. This projection indicates a year-over-year increase of 16.08%.

Unity surpassed the Zacks Consensus Estimate for earnings in two of the trailing four quarters, while missing it twice with an average positive surprise of 7.37%.

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 Consider

Unity's second-quarter performance is expected to have benefited from continued momentum in Vector, its AI-powered advertising platform. Improved targeting and product enhancements have likely driven higher advertiser spending. Strong sequential growth has been supported by richer data signals and ongoing machine learning improvements. The integration of runtime data into Vector is expected to strengthen ad personalization and targeting over time, though this contribution likely remained modest and gradual rather than an immediate step change.

The Strategic Create segment is likely to have benefited from higher pricing and improving product stability. Unity has reduced user-reported issues following the Unity 6 rollout, helping it maintain a leading position in mobile game creation. The public beta launch of Unity AI and rising adoption of AI-assisted development tools likely supported customer engagement. Early retention data has been encouraging, with a majority of beta users still active five days after adoption. Healthy traction in non-gaming verticals, particularly automotive HMI, likely provided an additional growth driver. The planned launch of Unity's commerce platform may have added an early, modest revenue contribution.

Disciplined cost management likely continued to support profitability despite ongoing investment in AI research and development. Operating leverage from lower sales, marketing and G&A spending probably offset elevated cloud costs tied to AI testing. The combination of steady revenue growth and improving margins is expected to have supported second quarter results, alongside continued progress toward the company's longer-term profitability targets.

What Our Model Says About Unity

Our proven model does not conclusively predict an earnings beat for Unity 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 currently has an Earnings ESP of 0.00% and a Zacks Rank #2. 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 on earnings in their upcoming releases:

Sandisk Corporation SNDK is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, Sandisk has an Earnings ESP of +4.13% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Sandisk’s fourth-quarter earnings is pegged at $34.24 per share, indicating a year-over-year surge of 11,707%. Earnings estimates for the quarter have been revised upward by 5.7% over the past 60 days. 

Western Digital Corporation WDC is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, Western Digital has an Earnings ESP of +3.22% and flaunts a Zacks Rank #1.

The Zacks Consensus Estimate for Western Digital’s fourth-quarter earnings is pegged at $3.35 per share, calling for a year-over-year increase of 101.8%. Earnings estimates for the quarter have been revised upward by 3 cents in the past 30 days. 

MKS Inc. MKSI is scheduled to report second-quarter 2026 results on Aug. 5. Currently, MKS has an Earnings ESP of +2.64% and carries a Zacks Rank #2.

The Zacks Consensus Estimate for MKS’ second-quarter earnings is pegged at $2.93 per share, calling for a year-over-year jump of 65.5%. Earnings estimates for the quarter have been revised northward by a penny in the past 30 days.

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