UIS · Unisys Corporation

Unisys reported a solid start to 2026, with revenue increasing 1.3% year-over-year to $437.6 million, although constant currency revenue declined 4.5% due to significant foreign exchange headwinds. The company noted that foreign currency fluctuations contributed a 6 percentage-point positive impact on reported revenue, masking underlying volume declines partially caused by client attrition and the timing of software license renewals. Profitability showed marked improvement, with GAAP operating profit margin expanding 250 basis points to 3.7%, driven by delivery improvements and labor cost savings, particularly within the Cloud, Applications & Infrastructure Solutions (CA&I) segment. A specific transaction in the UK business process outsourcing joint venture provided a 50 basis point benefit to gross margin in the quarter. New Business Total Contract Value (TCV) surged 45% year-over-year to $158 million, signaling strong future demand, while total company backlog increased to $2.96 billion from $2.89 billion in the prior year period. Despite the operational progress, the GAAP net loss widened to $35.8 million compared to $29.5 million in the prior year. Management reaffirmed its full-year 2026 guidance for constant currency revenue decline of 4.5% to 6.5% and non-GAAP operating profit margin of 9.0% to 11.0%, citing confidence from strong client signings. Cash and cash equivalents decreased to $380.2 million from $413.9 million at year-end, primarily due to the timing of cash interest payments on Senior Secured Notes.