Unisys (UIS)
NYSE:UIS
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Unisys
(NYSE:UIS)
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Rating:53Neutral
Price Target:
$2.50
▼(-3.10% Downside)
Action:ReiteratedDate:05/05/26
The score is held back primarily by weak financial quality (recent losses and a sharp deterioration to negative TTM cash flow) and ongoing leverage. Technicals are moderately supportive (price above key moving averages with positive MACD), valuation appears inexpensive on P/E, and the latest earnings call was mixed—profitability initiatives are improving, but guidance points to declining revenue and still-negative free cash flow.
Positive Factors
High‑margin License & Support
A large, growing License & Support stream at roughly 70% gross margin provides durable, high‑quality recurring revenue that cushions the business during services cyclicality. Sustained L&S scale supports consistent gross profit, higher operating leverage, and steadier pre‑pension cash flow over multi‑year horizons.
Negative Factors
Top‑line decline and weak guidance
Management's mid‑single digit revenue decline guidance reflects durable demand headwinds across segments. Prolonged top‑line contraction erodes scale benefits, pressures utilization and renewal economics, and can limit the durability of margin gains if volume declines persist beyond the next few quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High‑margin License & Support
A large, growing License & Support stream at roughly 70% gross margin provides durable, high‑quality recurring revenue that cushions the business during services cyclicality. Sustained L&S scale supports consistent gross profit, higher operating leverage, and steadier pre‑pension cash flow over multi‑year horizons.
Read all positive factors
Unisys (UIS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$196.73M
Dividend YieldN/A
Average Volume (3M)634.10K
Price to Earnings (P/E)2.6
Beta (1Y)2.18
Revenue Growth-2.90%
EPS Growth-69.87%
CountryUS
Employees15,900
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-4.77
Shares Outstanding72,326,360
10 Day Avg. Volume711,199
30 Day Avg. Volume634,103
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.70
Price to Sales (P/S)0.10
P/FCF Ratio-1.16
Enterprise Value/Market Cap3.01
Enterprise Value/Revenue0.30
Enterprise Value/Gross Profit1.08
Enterprise Value/Ebitda-4.91
Forecast
1Y Price Target
$5.50Price Target Upside113.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.69
Revenue Forecast (FY)$1.90B
Unisys Business Overview & Revenue Model
Company Description
Unisys 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 (E...
How the Company Makes Money
Unisys makes money primarily by selling IT services and solutions through a combination of (1) ongoing managed services contracts and (2) project-based professional services engagements. A significant portion of revenue is generated from recurring...
Unisys Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 05, 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.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.
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%).
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Q4-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
34
Negative
Balance Sheet
38
Negative
Cash Flow
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 | 2.11B | 2.14B | 2.10B | 2.04B | 2.48B |
| Stockholders Equity | -282.60M | -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
2.58
Price Trends
2.24
Positive
2.54
Positive
3.17
Negative
Market Momentum
0.03
Negative
72.03
Negative
94.95
Negative
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 2.58 is above the 20-day moving average (MA) of 2.15, above the 50-day MA of 2.24, and below the 200-day MA of 3.17, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 72.03 is Negative, neither overbought nor oversold. The STOCH value of 94.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UIS.
Unisys Risk Analysis
Unisys disclosed 23 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $4.21B | 13.47 | 23.73% | 1.69% | -2.90% | 6.89% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $1.95B | 6.07 | 13.41% | ― | -3.09% | ― | |
55 Neutral | $1.80B | -10.08 | -2.81% | ― | -3.25% | 78.91% | |
53 Neutral | $196.73M | 2.63 | 126.78% | ― | -2.90% | -69.87% | |
48 Neutral | $1.34B | -2.86 | -55.55% | ― | -16.22% | -41.59% |
* Technology Sector Average
UIS
Unisys
2.72
-1.95
-41.76%
SAIC
Science Applications
96.86
-22.73
-19.00%
DXC
DXC Technology
11.49
-4.02
-25.92%
CLVT
Clarivate
2.81
-1.36
-32.61%
AI
C3ai
9.22
-12.60
-57.75%
Unisys Corporate Events
Executive/Board ChangesShareholder Meetings
Unisys Shareholders Back Board, Name New Independent Chair
Positive
May 4, 2026
Unisys Corporation reported the results of its April 30, 2026 annual meeting of stockholders, where approximately 88% of eligible shares were represented, and all 10 director nominees were elected to serve until the 2027 meeting. Shareholders also...
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 ...
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.