The Bull Case For Unity Software (U) Could Change Following Rare Cross-Engine Alliance With Epic Games

• Epic Games announced a partnership with Unity at Unite 2025, enabling developers to integrate Unity games into Fortnite and bring Unreal Engine support to Unity's cross-platform commerce platform for enhanced catalog and payment management.
• This collaboration marks a rare cross-engine alliance, potentially expanding both companies' developer ecosystems and creating new opportunities for monetization and audience growth among creators.
• We'll explore how this expanded developer reach and cross-platform integration could reshape Unity's investment narrative in the months ahead.

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Unity Software Investment Narrative Recap

Owning shares in Unity Software demands conviction in the company's ability to monetize its developer ecosystem and maintain technology leadership, particularly as the gaming industry grows more interconnected. The recent partnership with Epic Games, while headline-grabbing, does not immediately resolve Unity's most pressing short-term catalyst, accelerating profitability and margin improvement, nor does it substantially alter the highest risk of execution challenges as Unity expands into non-gaming markets and manages rising costs. Investors should view the news as a meaningful step, but not a game-changer for near-term financial fundamentals. Among Unity’s recent announcements, the October engine enhancement, allowing developers to manage commerce and catalogs from a unified dashboard, directly aligns with the mission behind the Epic Games collaboration. Both developments emphasize Unity’s push to offer more robust, platform-agnostic tools, potentially making its ecosystem stickier for developers and partners and supporting recurring revenue expansion as a catalyst for future growth. However, in contrast, it’s important for investors to recognize the ongoing risk that Unity’s high R&D spend and uncertain non-gaming revenue bets could...

Read the full narrative on Unity Software (it's free!)

Unity Software's narrative projects $2.3 billion revenue and $313.8 million earnings by 2028. This requires 9.3% yearly revenue growth and a $747.7 million earnings increase from the current earnings of -$433.9 million.

Uncover how Unity Software's forecasts yield a $42.31 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Eight Simply Wall St Community members estimate Unity’s fair value between US$20.31 and US$44 per share. With some estimates below current prices, investors are weighing future profitability hurdles and whether ecosystem partnerships will offset expense-driven risks.

Explore 8 other fair value estimates on Unity Software - why the stock might be worth as much as 12% more than the current price!

Build Your Own Unity Software Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Unity Software research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free Unity Software research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Unity Software's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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