Analysts from Citizens cut Unity’s price target from $50 to $37 and Wells Fargo lowered its target to $38 but maintained their Outperform and Overweight ratings respectively, attributing the adjustments to mixed Q4 results and a more cautious Q1 outlook. Unity beat its Q4 revenue and EBITDA guidance while flagging a slightly softer outlook for Q1 2026. Core segments showed momentum: the Vector segment grew mid-teens quarter-over-quarter, Create rose 16% year-over-year excluding non-strategic revenue, and initiatives like the Commerce Platform rollout, Unity 6 adoption, and runtime data integration are building operational traction with AI seen as a content-creation tailwind. Despite strong segment growth, Unity’s shares have slumped over 50% year-to-date, reflecting a broader software sell-off driven by investor concerns that AI tools could erode traditional subscription-based business models.