First, there was an upward revision of the calendar year 2025 and 2026 estimates, reflecting the company's strong Q1 results. Additionally, Morgan Stanley now forecasts a higher operating margin for Unity Software in the coming years, with expectations set at approximately 20% for calendar year 2025, an increase from the previous estimate of around 18%. For calendar year 2026, the operating margin is projected to be around 21%, also up from the prior estimate of roughly 18%. Currently, Unity maintains a healthy gross profit margin of 74.8%, though InvestingPro analysis shows the company isn't yet profitable over the last twelve months. Furthermore, the firm modestly raised its free cash flow (FCF) estimates for Unity Software. Alongside the improved FCF outlook, the analyst also increased the FCF multiple from 14 times to 15 times. These changes collectively contribute to the higher price target set by Morgan Stanley.