Unity Software stock jumps 10% on China business sale talks and strong Q1 revenue forecast

Unity Software shares rose 10% following reports of a potential sale of its China division valued over $1 billion and a strong preliminary Q1 2026 revenue forecast exceeding prior guidance. The company is focusing on its core growth areas by divesting non-core businesses and leveraging its AI-powered advertising platform, Unity Vector, which is driving significant revenue growth. Analysts responded positively, with several upgrades and optimistic price targets. Investors will watch for confirmation of the China sale and upcoming product updates to gauge future momentum.