Stock Market Today, March 27: Unity Software Surges on Vector AI Guidance

Unity Software (NYSE:U), a global video game and interactive content developer, closed Friday at $19.45, up 13.54%. The stock rose after the company announced its preliminary Q1 2026 revenue would exceed guidance.

Trading volume reached 51.5 million shares, coming in more than 200% above its three-month average of 16.8 million shares. Unity Software IPO'd in 2020 and has fallen 74% since going public.

How the markets moved today

The S&P 500 (SNPINDEX:^GSPC) fell 1.67% to 6,369, while the Nasdaq Composite (NASDAQINDEX:^IXIC) slipped 2.15% to 20,948. Among software infrastructure peers, Roblox (NYSE:RBLX) closed down 2.86% at $52.31, and AppLovin (NASDAQ:APP) ended at $381.20, down 2.56%, trailing Unity’s sharp gains.

What this means for investors

Today’s gains were a breath of fresh air for Unity Software investors. The stock is still down over 55% year-to-date, after artificial intelligence (AI) disruption fears, a CEO resignation, and a pricing backlash took their toll. Its strategic overhaul may now be paying off.

The company said its projected Q1 revenue guidance would be $505-$508 million, up from its earlier range of $480-$490 million. It also significantly increased its expected adjusted EBITDA. It credited Unity Vector, its AI ad platform, for its increased growth.

Unity Software also is streamlining its operations, closing down its ironSource Ads Network and selling its Supersonic games division. Bank of America and Morgan Stanley have both raised their price targets for the stock. Investors will be watching AI developments and Q2 guidance to see whether its recent growth is sustainable.

Bank of America is an advertising partner of Motley Fool Money. Emma Newbery has positions in Unity Software. The Motley Fool has positions in and recommends Roblox and Unity Software. The Motley Fool has a disclosure policy.