Unisys Corporation Earnings Recaps
Q2 2026
Aug 1, 2026
Unisys shares plunged 17.1% following the earnings release as investors were clearly disappointed by ongoing revenue decline and cautious outlook signals, despite some pockets of growth in Technology Solutions and Services and new business signings.
Key takeaways
- Revenue declined 2% year-over-year, reflecting underlying demand challenges despite a 2% growth in Technology Solutions and Services (excluding ClearPath).
- New business total contract value (TCV) rose sharply, up 57% year-over-year and 22% sequentially, driven largely by project work with existing clients.
- Gross margin in Technology Solutions and Services improved by 170 basis points, benefiting from investments in technology and higher-value solutions.
- Revenue headwinds persist, with ClearPath and legacy segments not detailed as performing well, suggesting pressure outside of TS&S.
- Management highlighted ongoing investments in AI-infused solutions for long-term value, but immediate financial results and guidance likely fell short of market expectations.
Q1 2026
May 8, 2026
Unisys shares gained 7.4% following the first quarter, driven by better-than-expected new business signings and margin expansion that reinforced confidence in full-year targets.
Key takeaways
- New business total contract value (TCV) reached $158 million, up 16% sequentially and 45% year-over-year, marking the strongest quarter of signings since Q4 2024.
- Revenue increased 1% year-over-year, with a 3% gain in Ex-L&S solutions, helped by better-than-expected volumes with existing clients and modest PC refresh cycle pickup.
- Gross margins improved by 80 basis points overall, including 170 basis points expansion in Ex-L&S segments, reflecting AI-driven efficiency gains that offset modest price pressures.
- Strong renewal rates above 95% and notable multiyear contracts, including deployment of the agentic service desk in new geographies and sectors, underpin recurring revenue strength.
- Management remains on track to meet full year free cash flow expectations, supported by continued workforce optimization and strategic AI adoption.
Q3 2025
Nov 7, 2025
Unisys Corporation demonstrated resilience in Q3 2025, outperforming operating margin expectations while navigating revenue headwinds largely due to timing issues and macroeconomic uncertainty.
Key takeaways
- Achieved non-GAAP operating profit margin guidance of 8% to 9%, with full-year pre-pension free cash flow expected to reach $110 million.
- Increased License & Support (L&S) revenue expectations to $430 million for the year, driven by strong client retention and software consumption trends.
- Total contract value for new business increased 15% year-over-year, suggesting solid client renewals despite a challenging pricing environment.
- Continued focus on pension strategy led to a significant reduction in U.S. pension liabilities, with over $300 million removed through an annuity purchase.
- Adjustments in project timing and client budget constraints may impact near-term revenue growth, although a long-term growth strategy remains in place.