Unisys Corporation Q1 2026 Earnings Recap

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.