Core Viewpoint - Goldman Sachs raised the target price for Unity Software (U.US) from $38.00 to $42.00 while maintaining a "Neutral" rating, following the company's strong Q3 2025 earnings report, which showed robust revenue growth driven by the Create and Grow segments [1] Group 1: Financial Performance - Unity's Q3 revenue reached $471 million, exceeding the market forecast of $452.76 million, with earnings per share of $0.20 significantly surpassing the expected loss of $0.23 [2] - Analysts expect Unity to achieve earnings per share of $0.86 for the current fiscal year, marking the company's entry into a profit phase [1] Group 2: Business Segments - The Create segment benefited from price increases and favorable industry conditions, while the Grow segment gained momentum from the ongoing expansion of Vector AI [1] - Morgan Stanley highlighted that this is the first time in four years that Unity's two main business segments have achieved positive organic growth, with actual revenue and EBITDA exceeding their expectations by 5% and 16%, respectively [2] Group 3: Market Reaction and Analyst Ratings - Unity's stock price has surged by 67.07% over the past six months, reflecting strong market performance [1] - Following the strong earnings report, Citizens raised Unity's target price to $45 while maintaining an "Outperform" rating, and Morgan Stanley increased its target price from $44 to $48, maintaining an "Overweight" rating [2] Group 4: Strategic Outlook - Management remains optimistic about the fourth-quarter outlook and has reiterated its commitment to balancing growth and profitability in the long term [1] - Despite the positive outlook, Goldman Sachs raised concerns about whether the current stock price fully reflects the expectations for accelerated future growth [1]