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Unisys (UIS)
NYSE:UIS
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Unisys
(NYSE:UIS)
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Rating:45Neutral
Price Target:
$2.50
▲(2.88% Upside)
Action:ReiteratedDate:02/26/26
The score is held down primarily by weak financial performance (losses and negative TTM cash flow with meaningful leverage). Technicals are also soft with the price below key longer-term moving averages and a negative MACD. The earnings call provides some support via improving non-GAAP margins and strong License & Support trends, but near-term revenue decline and continued pension-related cash demands keep risk elevated.
Positive Factors
High‑margin recurring License & Support
A large, growing License & Support stream at roughly 70% gross margin provides durable, high‑margin recurring revenue that stabilizes cash generation and profitability versus project volatility. Over 2–6 months this supports margin resilience, higher attach economics and predictable renewal-driven cash flows.
Contracted backlog and bookings strength
A multi‑billion backlog and above‑par book‑to‑bill give multi‑quarter revenue visibility and renewal-led stability. This contracted pipeline cushions near‑term top‑line weakness, supports predictable utilization planning, and underpins capacity to convert renewals into margin‑rich managed services.
SG&A cuts and operational efficiency
Sustained SG&A reductions demonstrate structural cost discipline that improves operating leverage. Continued savings plus process and technology investments mean a smaller revenue base can still produce positive non‑GAAP margins and better pre‑pension cash flow over the medium term.
Negative Factors
Near‑term revenue decline
Management's guidance for mid‑single‑digit revenue decline implies structural top‑line pressure that constrains leverage and reinvestment capacity. Persistent revenue contraction reduces the benefit of cost cuts, limits cash flow recovery, and raises execution risk for margin targets across the business.
New business slowdown (TCV drop)
A sharp decline in new business TCV signals weaker demand and tougher sales execution. If prolonged, reduced net new bookings will erode backlog replacement, limit revenue growth, and magnify dependency on renewals and a few high‑margin L&S relationships.
Cash burn and pension cash demands
Large pension contributions and episodic cash outlays have driven negative FCF and strain liquidity despite operational improvements. Ongoing pension funding through 2029 and meaningful leverage limit flexibility, elevate refinancing risk, and reduce capacity for strategic investment or M&A.
Unisys (UIS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$173.29M
Dividend YieldN/A
Average Volume (3M)617.14K
Price to Earnings (P/E)―
Beta (1Y)1.95
Revenue Growth-4.93%
EPS Growth18.65%
CountryUS
Employees15,900
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.86
Shares Outstanding71,312,020
10 Day Avg. Volume649,867
30 Day Avg. Volume617,140
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.46
Price to Sales (P/S)0.10
P/FCF Ratio-1.16
Enterprise Value/Market Cap3.24
Enterprise Value/Revenue0.29
Enterprise Value/Gross Profit1.02
Enterprise Value/Ebitda-4.66
Forecast
1Y Price Target
$5.50Price Target Upside126.34% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.69
Revenue Forecast (FY)$1.90B
Unisys Business Overview & Revenue Model
Company DescriptionUnisys Corporation, together with its subsidiaries, operates as an information technology services company worldwide. It operates in Digital Workplace Solutions (DWS); Cloud and Infrastructure Solutions (C&I); and Enterprise Computing Solutions (ECS) segments. The DWS segment provides solutions that transform digital workplaces securely and create exceptional end-user experiences. The C&I segment offers solutions that drive modern IT service platforms, cloud applications development, intelligent services, and cybersecurity services. The ECS segment provides solutions that harness secure, continuous high-intensity computing, and enable digital services through software-defined operating environments. Its solutions include Unisys InteliServe, a service solution that transforms traditional service desk into an intelligent, user-centric experience aligned with the needs of the modern digital workplace; Unisys CloudForte, a comprehensive managed service offering to help accelerate the secure move of data and applications to the cloud; PowerSuite, a packaged software tool used by enterprise IT to monitor, analyze, troubleshoot and secure collaboration, and communications multi-platform environments; Unisys ClearPath Forward, a software operating environment for high-intensity enterprise computing; and Unisys Stealth security software, which enables trusted identities to access micro-segmented critical assets and safely communicate through secure and encrypted channels. In addition, the company provides industry solutions, which help law enforcement agencies solve crime; social services case workers assist families; travel and transportation companies manage freight and distribution; and financial institutions deliver omnichannel banking. It serves customers in the government, financial services, and commercial markets through direct sales force, distributors, resellers, and alliance partners. Unisys Corporation was founded in 1886 and is based in Blue Bell, Pennsylvania.
How the Company Makes MoneyUnisys generates revenue through multiple streams, primarily by providing IT services, solutions, and consulting. The company's revenue model is built on contracts with government and commercial clients for IT services, which include infrastructure management, cloud services, and application development. Key revenue streams include managed services, where Unisys manages clients' IT infrastructure and operations, and systems integration services that involve designing and implementing technology solutions tailored to client needs. Unisys also earns revenue from software licenses and maintenance agreements related to its proprietary software products. Significant partnerships with technology providers and strategic alliances in industry sectors bolster its offerings, enhancing its ability to deliver comprehensive solutions that meet evolving market demands.
Unisys Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but pragmatic view: clear operational and financial progress on profitability, cash generation (pre-pension), L&S performance, backlog/TCV, pension de‑risking, AI product rollout, and notable analyst recognition. These positives were balanced by top-line pressure (FY revenue decline and 2026 revenue guidance), a large drop in new business TCV (−38%), XLNS margin/volume headwinds, PC- and public-sector-related softness, and a significant GAAP loss driven by pension-related items and discretionary pension cash use. Management emphasized continued execution, conservative near-term guidance, and a multi-year path to remove U.S. pension volatility by 2029.Q4-2025 Updates
Positive Updates
Improved Profitability and Margins
Non-GAAP operating margin of 18% in Q4 and 9.1% for FY2025 (30 bps annual improvement); Q4 gross margin 33.9% (up 180 bps YoY). Full-year non-GAAP operating profit margin exceeded top end of revised guidance.
Strong License & Support (L&S) Performance
Full-year L&S revenue $428,000,000; Q4 L&S revenue $186,000,000 (up 19.8% YoY). Full-year L&S exceeded original expectations by nearly $40,000,000 — third consecutive year of substantial upside. Company guiding L&S ~$415,000,000 for 2026 at ~70% gross margin.
Improved Cash Generation (Pre-Pension)
Pre-pension free cash flow of $128,000,000 for FY2025, up 55% YoY and above the $110,000,000 expectation. Year-end cash balance $414,000,000, up ~$37,000,000 YoY.
Pension De-risking and Leverage Improvement
Total contributions reduced global pension deficit by ~$300,000,000 to ~$450,000,000 at year-end. Executed annuity purchase removing ~ $320,000,000 of gross U.S. defined benefit liabilities. Net leverage (including pension) improved to 2.8x from 3.0x at 2024.
Strong Contracted Bookings and Backlog
Total company TCV $2,200,000,000 for the year, including $1,700,000,000 of renewal TCV (>$1,000,000,000 in Q4). Backlog $3,200,000,000 (up 12% sequential, +11% YoY). Trailing 12-month book-to-bill 1.1x company-wide (1.2x XLNS).
Industry Recognition and Talent
Gartner named Unisys a Leader in Outsourced Digital Workplace Services MQ and ranked #1 in Critical Capabilities for NA and globally for service desks and device management. Additional recognition from Forbes and Time. Voluntary attrition below average at 11.4%.
AI & Product Momentum
Launched Service Experience Accelerator (agentic AI) now in production and planned rollout to ~1/3 of client base in 2026. Advancing agentic AI within CA&I (intelligent operations) and partnerships with hyperscalers and software vendors to scale solutions.
SG&A and Cost Reduction Progress
Reduced SG&A by ~13% (~$60,000,000) over two years; expect to lower SG&A another $10–$20M in 2026. Ongoing workforce optimization and technology investments aimed at further efficiency gains.
Negative Updates
Full-Year Revenue Decline
Total revenue for FY2025 was $1,950,000,000, down 2.9% as reported and down 3.3% in constant currency despite Q4 growth (+5.3% reported, +2.7% constant). Company expects FY2026 revenue decline of 6.5%–4.5% in constant currency (reported −3.8% to −1.8%).
New Business Slowdown
Full-year new business TCV totaled $491,000,000, down 38% YoY due to elongated sales cycles and public sector hesitancy. Included an approximately $200,000,000 adjustment for a mutually agreed contractual alignment on a Q1 2025 signing.
XLNS Revenue and Margin Headwinds
XLNS (specialized services/next-gen compute) Q4 margin 13.2% (down 540 bps QoQ) primarily due to incremental cost-reduction charges and variable compensation timing. Full-year XLNS gross margin 16.8% vs 17.6% prior year.
PC and Public Sector Pressures
DWS revenue impacted by PC-related declines (Windows 10 support extension and memory-driven price increases); DWS FY revenue $508,000,000 (down 3.1%). CA&I FY revenue $733,000,000 (down 4.8%) impacted by federal funding disruptions and budget uncertainty.
GAAP Loss and Free Cash Flow Drag from Pension Actions
GAAP net loss for FY2025 was $340,000,000 (diluted loss $4.79), including an ~$228,000,000 one-time noncash pension annuity expense. Full-year free cash flow was negative $218,000,000 due largely to a $250,000,000 discretionary pension contribution and $95,000,000 required post-retirement contributions. FY2026 free cash flow guide ~negative $25,000,000 (pre-pension positive $67,000,000).
Competitive Pricing and Renewal Losses
Some competitors prioritized revenue over profitability and delivery quality, resulting in several significant renewal losses and creating 'several hundred basis points' of growth headwinds into 2026.
Guidance Reflects Near-Term Declines and Volatility
Company guidance assumes mid-single-digit declines in XLNS for 2026 (7%–4.5% constant) and an uneven L&S cadence (Q1 expected low L&S weighting ~30% H1 / 70% H2), leading to only slightly positive Q1 non-GAAP operating margin.
Company Guidance
Unisys guided FY2026 total revenue to decline 6.5%–4.5% in constant currency (≈ −3.8% to −1.8% reported at Feb 1 FX) with XLNS revenue down 7%–4.5% CC, and expects full‑year License & Support revenue of $415M at ~70% gross margin (L&S averaging ~$400M in 2027–28). They see non‑GAAP operating margin of 9%–11% (including 100–200 bps of ex‑L&S gross‑margin improvement and modest absolute OpEx reductions) and model Q1 revenue at ≈ $415M with ≈ $60M of L&S (L&S weighted ~30% in H1 / 70% in H2, Q3 largest), implying a slightly positive Q1 non‑GAAP operating margin. Cash flow and balance‑sheet assumptions include full‑year free cash flow ≈ −$25M (pre‑pension FCF +$67M), capex ≈ $85M, cash taxes ≈ $70M, net interest ≈ $70M, other payments ≈ $30M, post‑retirement contributions ≈ $92M (≈ $87M pension + $5M other) with ≈ $17M in Q1, and ~ $350M of remaining cash pension contributions forecast through 2029 as the company pursues full U.S. pension removal; they also expect to reduce SG&A by $10M–$20M in 2026.Unisys Financial Statement Overview
Summary
Weak fundamentals drive the score: revenue has been broadly flat with a recent decline, profitability has been inconsistent with sizable losses (TTM net margin about -17%), and cash flow has deteriorated to negative operating/free cash flow (about -$140M TTM). An improving equity position is a positive offset, but leverage remains meaningful (TTM debt-to-equity ~1.8x) and cash burn elevates risk.Income Statement
Revenue has been broadly flat over time (2025 down vs. 2024, with limited multi-year momentum), while profitability is the key drag. The company has posted recurring net losses across most years, with TTM (Trailing-Twelve-Months) net margin deeply negative (about -17%) despite a mid-to-high 20s gross margin profile. Operating profitability is inconsistent, and the lack of sustained earnings power meaningfully weighs on the income-statement quality.34
Negative
Balance Sheet
Leverage remains meaningful, with TTM (Trailing-Twelve-Months) debt-to-equity around 1.8x, which limits flexibility if operating results weaken. While equity has improved to positive in the latest period (a notable step up versus prior years when equity was negative), the balance sheet still carries elevated financial risk relative to the current earnings profile and the history of losses.38
Negative
Cash Flow
Cash generation has been volatile and recently deteriorated: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both negative (about -$140M), reversing the positive cash flow posted in 2024. The year-over-year decline in free cash flow is material, and the shift to cash burn increases reliance on balance-sheet capacity or external funding if it persists.26
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.95B | 2.01B | 2.02B | 1.98B | 2.05B |
| Gross Profit | 549.30M | 585.90M | 551.30M | 529.60M | 572.00M |
| EBITDA | -191.00M | 63.00M | -178.20M | 153.30M | -252.90M |
| Net Income | -339.80M | -193.40M | -430.70M | -106.00M | -448.50M |
Balance Sheet | |||||
| Total Assets | 1.85B | 1.87B | 1.97B | 2.07B | 2.42B |
| Cash, Cash Equivalents and Short-Term Investments | 413.90M | 376.50M | 387.70M | 391.80M | 552.90M |
| Total Debt | 802.90M | 537.10M | 548.90M | 568.80M | 610.90M |
| Total Liabilities | 1.42B | 2.14B | 2.10B | 2.04B | 2.48B |
| Stockholders Equity | 430.70M | -283.40M | -151.80M | -14.70M | -113.70M |
Cash Flow | |||||
| Free Cash Flow | -170.00M | 71.60M | 6.90M | -64.60M | 86.70M |
| Operating Cash Flow | -140.00M | 135.10M | 74.20M | 12.70M | 132.50M |
| Investing Cash Flow | -31.80M | -97.40M | -69.60M | -131.40M | -360.30M |
| Financing Cash Flow | 186.00M | -18.10M | -17.30M | -21.60M | -105.50M |
Unisys Technical Analysis
Neutral
2.43
Price Trends
2.69
Negative
2.92
Negative
3.60
Negative
Market Momentum
-0.11
Negative
48.89
Neutral
61.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UIS, the sentiment is Neutral. The current price of 2.43 is above the 20-day moving average (MA) of 2.33, below the 50-day MA of 2.69, and below the 200-day MA of 3.60, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 48.89 is Neutral, neither overbought nor oversold. The STOCH value of 61.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UIS.
Unisys Risk Analysis
Unisys disclosed 22 risk factors in its most recent earnings report. Unisys reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Unisys Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $4.16B | 11.77 | 23.75% | 1.69% | -0.38% | 31.38% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $1.77B | 16.47 | 6.34% | ― | -4.86% | -25.15% | |
59 Neutral | $2.14B | 5.42 | 13.79% | ― | -4.13% | 2143.48% | |
54 Neutral | $1.47B | -7.82 | -7.60% | ― | -2.96% | 71.30% | |
47 Neutral | $1.12B | -2.52 | -55.01% | ― | 1.84% | -27.74% | |
45 Neutral | $173.29M | -0.51 | ― | ― | -4.93% | 18.65% |
* Technology Sector Average
UIS
Unisys
2.43
-1.78
-42.28%
ASGN
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42.90
-22.20
-34.10%
SAIC
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92.26
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-2.35%
DXC
DXC Technology
12.59
-5.51
-30.44%
CLVT
Clarivate
2.30
-1.91
-45.37%
AI
C3ai
7.95
-14.08
-63.91%
Unisys Corporate Events
Business Operations and StrategyFinancial DisclosuresShareholder Meetings
Unisys Reports Strong Q4 2025 Margins and Cash Flow
Positive
Feb 24, 2026
On February 24, 2026, Unisys reported fourth-quarter 2025 revenue of $574.5 million, up 5.3% year over year, with operating profit margin rising to 13.3% and non-GAAP operating margin to 18.0%. The quarter delivered stronger cash generation, with $104.9 million in cash from operations and pre-pension free cash flow nearly doubling versus 4Q24, underpinned by robust growth in License & Support revenue.
For full-year 2025, revenue declined 2.9% to $1.95 billion, but non-GAAP operating margin improved to 9.1% as management prioritized profitability, free cash flow and pension de-risking over top-line growth. Cash and equivalents rose to $413.9 million and the defined benefit pension funding deficit improved by about $301.7 million, while the company highlighted growing market traction for its AI-enabled offerings and a strong liquidity profile with no major near-term debt maturities.
Unisys also scheduled its 2026 annual meeting of stockholders for April 30, 2026, to be held virtually, with March 2, 2026 set as the record date for shareholders entitled to vote. This virtual format continues the company’s practice of remote engagement with investors while it focuses on balancing strategic technology investments with financial discipline.
The most recent analyst rating on (UIS) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Unisys stock, see the UIS Stock Forecast page.
Business Operations and StrategyRegulatory Filings and Compliance
Unisys Updates Bylaws and Corrects Charter Error
Neutral
Nov 28, 2025
On November 25, 2025, Unisys Corporation’s Board of Directors approved changes to the company’s bylaws, removing the age limit for officers and aligning the bylaws with the company’s charter. Additionally, Unisys filed a Certificate of Correction with the Delaware Secretary of State to amend an administrative error in the previously filed charter, ensuring compliance with the correct version.
The most recent analyst rating on (UIS) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on Unisys stock, see the UIS Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.