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Unisys (UIS)
NYSE:UIS
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Unisys (UIS) AI Stock Analysis

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UIS

Unisys

(NYSE:UIS)

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Neutral 55 (OpenAI - 4o)
Rating:55Neutral
Price Target:
$4.00
▲(0.50% Upside)
Unisys's overall stock score is driven by mixed financial performance and valuation concerns, offset by positive earnings call insights. The company's strategic initiatives and improved guidance are promising, but ongoing financial challenges and technical indicators suggest caution.
Positive Factors
Revenue Growth
Sequential and year-over-year revenue growth indicates a positive trend in business performance, suggesting improved market demand and operational execution.
Digital Workplace Solutions
Growth in the Digital Workplace segment reflects successful adaptation to market needs and a shift towards higher-margin services, enhancing long-term profitability.
Pension Plan Strategy
The pension plan strategy reduces financial risk and improves cash flow, enhancing financial stability and flexibility over the next five years.
Negative Factors
Revenue Decline in Cloud Solutions
A decline in cloud solutions revenue indicates challenges in maintaining competitive positioning, potentially impacting future growth in a key sector.
Delayed Contract Signings
Delays in contract signings can lead to revenue recognition issues, impacting short-term financial performance and cash flow predictability.
Cash Flow Challenges
Negative cash flow indicates potential liquidity issues, which could constrain operational flexibility and investment capacity if not addressed.

Unisys (UIS) vs. SPDR S&P 500 ETF (SPY)

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 offering IT services and solutions to its clients. The company's revenue model includes the provision of consulting services, systems integration, and managed services which are billed on a project or subscription basis. Key revenue streams stem from contracts with government and commercial clients for IT outsourcing, cloud infrastructure, and digital transformation initiatives. Additionally, Unisys benefits from partnerships with leading technology providers, which enhance its service offerings and expand its market reach. The company also sees revenue from licensing its software products and solutions to businesses looking to improve their operational efficiencies and security posture.

Unisys Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative elements. Revenue growth and improved guidance, stabilization in Digital Workplace Solutions, and strategic pension plan actions are positive aspects. However, challenges in Cloud, Applications & Infrastructure Solutions, delayed contract signings, and cash flow issues present concerns.
Q2-2025 Updates
Positive Updates
Revenue Growth and Improved Guidance
Second quarter reported revenue increased 12% sequentially and 1% year-over-year, exceeding expectations. Full-year profitability guidance was raised due to continued strong performance in License and Support revenue and operational efficiencies.
Digital Workplace Solutions Stabilization
The Digital Workplace segment saw 13% sequential growth, driven by new business and higher-value infrastructure services. Declines in PC-related services have stabilized.
Pension Plan Strategy
Unisys issued $700 million in senior secured notes to refinance debt and made a $250 million discretionary pension contribution, reducing U.S. pension deficit, and improving cash flows over the next five years.
Innovative AI and Service Offerings
AI integration has increased automation in service delivery, with significant improvements in the Service Experience Accelerator leading to a better client experience and cost efficiencies.
New Business and Client Wins
First half new business Total Contract Value grew 15% year-over-year. Notable client expansions include IT support for a U.S. hospital system and data center management for a global financial institution.
Negative Updates
Cloud, Applications & Infrastructure Solutions Decline
Revenue in this segment declined by 4.9% year-over-year, with public sector client sentiment muted due to geopolitical concerns.
Delayed Contract Signings
Some new business signings shifted out of the second quarter due to complexities in negotiating large contracts, which could affect revenue recognition.
Cash Flow Challenges
Pre-pension free cash flow was negative $58 million in the second quarter, affected by working capital fluctuations expected to reverse in the third quarter.
Company Guidance
In the Unisys Corporation Second Quarter 2025 Earnings Conference Call, the company provided several key metrics and updates. They reported a 12% sequential increase in revenue and a 10% rise in their Ex-L&S solutions, with total company revenue up 1% year-over-year. The Digital Workplace segment showed improvement with a stabilization of volume declines in lower-margin services and increases in higher-value services. The company also raised its full-year profitability outlook and highlighted a 15% increase in new business TCV for the first half of 2025 compared to the previous year. Furthermore, Unisys reported a backlog of $2.9 billion, up 5% year-over-year, and emphasized their focus on operational efficiency and AI adoption, which contributed to a non-GAAP operating profit margin increase to 7.6%. They also discussed their strategic move to reduce U.S. pension volatility, which is expected to enhance cash flows and leverage reduction over the next five years.

Unisys Financial Statement Overview

Summary
Unisys displays mixed financial results with declining revenue and persistent net losses. However, there are signs of improvement in cash flow generation and equity stability, despite high debt levels.
Income Statement
55
Neutral
Unisys has shown a decline in revenue over the past periods, with a noticeable decrease from $2.01 billion in 2023 to $1.52 billion in TTM 2025. The gross profit margin for TTM 2025 is 29.6%, indicating moderate profitability. However, the company struggles with consistent net losses, with a net profit margin of -4.8% in TTM 2025. The EBIT margin is 5.5%, showing operational challenges. There's a positive EBITDA margin of 11.0% for TTM 2025, reflecting some improvement in operating performance.
Balance Sheet
50
Neutral
Unisys exhibits a high level of debt, with a debt-to-equity ratio of 0.70 in TTM 2025, but this is due to past negative equity situations. The equity has improved to $751 million in TTM 2025 compared to negative equity in previous years. The return on equity remains negative due to net losses, indicating inefficiency in generating returns from shareholders' equity. The equity ratio is 40.8%, reflecting moderate financial stability.
Cash Flow
60
Neutral
Operating cash flow improved significantly to $144.6 million in TTM 2025 from $13.5 million in 2022. The free cash flow also increased, showing a positive growth trajectory with a free cash flow of $92.9 million in TTM 2025. The operating cash flow to net income ratio is -1.97, indicating manageable cash generation relative to net losses. The free cash flow to net income ratio is -1.27, showing room for improvement in efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.95B2.01B2.02B1.98B2.05B2.03B
Gross Profit557.80M585.90M556.90M529.60M572.00M483.00M
EBITDA167.40M63.00M-178.20M153.30M-252.90M-81.60M
Net Income-73.40M-193.40M-430.70M-104.90M-449.80M-317.20M
Balance Sheet
Total Assets1.84B1.87B1.97B2.07B2.42B2.71B
Cash, Cash Equivalents and Short-Term Investments393.10M376.50M387.70M391.80M552.90M898.50M
Total Debt527.40M537.10M548.90M542.80M575.50M692.30M
Total Liabilities1.09B2.14B2.10B2.04B2.48B3.02B
Stockholders Equity751.50M-283.40M-151.80M-14.70M-113.70M-356.80M
Cash Flow
Free Cash Flow92.90M71.60M6.90M-64.60M50.80M-781.20M
Operating Cash Flow144.60M135.10M74.20M12.70M132.50M-681.20M
Investing Cash Flow-98.90M-97.40M-69.60M-131.40M-360.30M1.04B
Financing Cash Flow-14.40M-18.10M-17.30M-21.60M-105.50M5.10M

Unisys Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.98
Price Trends
50DMA
4.01
Negative
100DMA
4.33
Negative
200DMA
4.86
Negative
Market Momentum
MACD
<0.01
Negative
RSI
49.71
Neutral
STOCH
26.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UIS, the sentiment is Negative. The current price of 3.98 is above the 20-day moving average (MA) of 3.96, below the 50-day MA of 4.01, and below the 200-day MA of 4.86, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.71 is Neutral, neither overbought nor oversold. The STOCH value of 26.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
3.27B20.3120.43%1.94%26.15%
76
Outperform
1.98B24.5911.73%1.50%9.16%16.38%
69
Neutral
3.00B11.625.72%2.79%3.40%53.14%
55
Neutral
$283.75M192.24%-1.53%78.84%
54
Neutral
448.65M92.212.18%-14.36%-73.74%
50
Neutral
1.74B-3.7285.48%-43.28%15.29%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UIS
Unisys
3.98
-1.70
-29.93%
ASGN
ASGN
47.87
-45.36
-48.65%
SAIC
Science Applications
97.67
-39.89
-29.00%
DXC
DXC Technology
14.01
-6.74
-32.48%
CLVT
Clarivate
3.69
-3.41
-48.03%
AI
C3ai
17.14
-7.09
-29.26%

Unisys Corporate Events

Business Operations and StrategyExecutive/Board ChangesPrivate Placements and Financing
Unisys Announces $250 Million Pension Contribution
Positive
Jul 24, 2025

On July 23, 2025, Unisys Corporation’s Board of Directors approved amendments to the company’s bylaws, clarifying director numbers, officer appointments, and executive compensation. Additionally, Unisys announced a conference call on July 24, 2025, to discuss a recent $250 million pension contribution and debt transaction, aimed at reducing pension deficits and volatility, which is expected to enhance the company’s financial stability and strategic positioning.

The most recent analyst rating on (UIS) stock is a Hold with a $8.00 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.Date of analysis: Sep 24, 2025