Unisys Announces 2Q26 Results

Unisys Announces 2Q26 Results

Unisys Reports Strong New Business Signings and Reaffirms 2026 Full-Year Guidance

• Revenue of $473.5 million, down 2.0% year over year (YoY), down 5.2% in constant currency⁽¹⁾

• Technology Solutions & Services⁽¹³⁾ (TS&S) revenue of $403.8 million, up 2.0% YoY, down 1.3% in constant currency

• Gross profit margin of 24.8%, down 210 bps YoY; TS&S gross profit margin of 19.3%, up 170 bps YoY

• New Business⁽⁵⁾ Total Contract Value (TCV)⁽³⁾ of $192 million, an increase of 57% YoY

• Unisys reaffirms previously raised 2026 full-year constant currency revenue growth guidance and maintains non-GAAP operating profit⁽⁶⁾ margin guidance; guidance assumes ClearPath revenue of approximately $425 million

BLUE BELL, Pa., July 29, 2026 /PRNewswire/ -- Unisys Corporation (NYSE: UIS) reported financial results for the second quarter of 2026 (2Q26).

"The year is progressing well, with our strong second quarter performance building on the good start we had in the first quarter," said Michael Thomson, Unisys CEO and President. "New business signings are again a bright spot, and client engagement continues to improve. Our AI-First approach is an important enabler across the business, strengthening our foundation for future growth, sustained market competitiveness, and operational efficiency."

Unisys Chief Financial Officer Deb McCann said, "We are pleased with the strong second quarter and are reaffirming our guidance ranges, including our recently improved revenue growth outlook for both TS&S and ClearPath. Our liquidity remains strong and estimated global deficit is improving, advancing us toward our goal of fully removing our U.S. pensions."

Financial Highlights
Please refer to the accompanying financial tables for a reconciliation of the GAAP to non-GAAP measures presented, except for financial guidance since such a reconciliation is not practicable without unreasonable effort.

Second Quarter 2026 Results

Effective in the second quarter of 2026, the company updated the naming conventions used to describe certain solution groupings to better reflect the nature of its offerings. The company renamed License and Support to ClearPath^® and Excluding License and Support to Technology Solutions & Services (TS&S). These changes did not impact the company's reportable segments, the recognition or measurement of revenue and expenses or the consolidated financial statements. As such, previously reported financial information has not been adjusted.

Revenue decreased 2.0% YoY, down 5.2% in constant currency. Gross profit margin down 210 bps YoY. The decreases in revenue and gross profit margin were primarily driven by the timing of ClearPath license renewals.

TS&S revenue increased 2.0% YoY, or down 1.3% in constant currency. TS&S gross profit margin increased 170 bps YoY, primarily driven by delivery improvement and labor cost savings initiatives, partially offset by lower-margins generated by Digital Workplace Solutions (DWS) during the current period.

During the second quarter of 2026, gross profit margin and TS&S gross profit margin benefited by approximately 50 and 60 basis points, respectively, from a first quarter transaction within the company's United Kingdom business process outsourcing consolidated joint venture. This transaction is expected to generate gross profit benefit of approximately $3 million quarterly and $12 million for the full 2026 year.

Operating loss for the second quarter of 2026 included a non-cash goodwill impairment charge of $47.2 million related to the DWS reporting unit. The impairment represented the full write-off of the remaining goodwill balance allocated to the DWS reporting unit.

Financial Highlights by Segment

Second Quarter 2026 Segment Results

DWS revenue increased 2.8% YoY, or down 1.1% in constant currency. DWS gross profit margin was 10.8%, a decrease of 610 bps YoY,  primarily due to known client attrition, a greater proportion of lower-margin hardware revenue, and increased delivery costs incurred during the transition phase of new business implementation.

CA&I revenue declined 0.4% YoY, down 3.2% in constant currency. CA&I gross profit margin was 25.0%, an increase of 420 bps YoY, primarily driven by delivery improvement and labor cost savings initiatives.

ECS revenue declined 10.1% YoY, down 13.2% in constant currency. ECS gross profit margin was 44.8%, a decrease of 870 bps YoY. The decreases in revenue and gross profit margin were primarily driven by the timing of ClearPath license renewals.

Balance Sheet and Cash Flows

In the second quarter of 2025, the company made a discretionary contribution of $250 million to its U.S. defined benefit pension plans.

Other Metrics

Backlog⁽²⁾ was $2.82 billion for the second quarter of 2026 compared to $2.92 billion for the second quarter of 2025.

2026 Financial Guidance
The company reaffirms previously raised full-year 2026 revenue growth guidance and maintains profitability guidance:

Constant currency revenue guidance translates to reported revenue growth of (2.6)% to (1.1)%, based on exchange rates as of the end of 2Q26. The guidance assumes ClearPath revenue of approximately $425 million and TS&S constant currency revenue growth of (6.0)% to (4.0)%.

Conference Call
Unisys will hold a conference call with the financial community on Thursday, July 30, at 8 a.m. Eastern Time to discuss the results of the second quarter of 2026.

The live, listen-only webcast, as well as the accompanying presentation materials, can be accessed on the Unisys Investor Website at www.unisys.com/investor. In addition, domestic callers can dial 1-844-695-5518 and international callers can dial 1-412-902-6749 and provide the following conference passcode: Unisys Corporation Call.

A webcast replay will be available on the Unisys Investor Website shortly following the conference call. A replay will also be available by dialing 1-855-669-9658 for domestic callers or 1-412-317-0088 for international callers and entering access code 3496075 from two hours after the end of the call until August 13, 2026.

⁽¹⁾ Constant currency – A significant amount of the company's revenue is derived from international operations. As a result, the company's revenue has been and will continue to be affected by changes in the U.S. dollar against major international currencies. The company refers to revenue growth rates in constant currency or on a constant currency basis so that the business results can be viewed without the impact of fluctuations in foreign currency exchange rates to facilitate comparisons of the company's business performance from one period to another. Constant currency is calculated by retranslating current and prior-period revenue at a consistent exchange rate rather than the actual exchange rates in effect during the respective periods.

⁽²⁾ Backlog – Represents the estimated amount of future revenue to be recognized under contracted work, which has not yet been delivered or performed. The company believes that actual revenue reflects the most relevant measure necessary to understand the company's results of operations, but backlog can be a useful metric and indicator of the company's estimate of contracted revenue to be realized in the future, subject to certain inherent limitations. The timing of conversion of backlog to revenue may be impacted by, among other factors, the timing of execution, the extension, nullification or early termination of existing contracts with or without penalty, adjustments to estimates in pricing or volumes for previously included contracts, seasonality and foreign currency exchange rates. Investors are cautioned that backlog should not be relied upon as a substitute for, or considered in isolation from, measures in accordance with GAAP.

⁽³⁾ Total Contract Value (TCV) – Represents the initial estimated revenue related to contracts signed in the period without regard for early termination or revenue recognition rules. Changes to contracts and scope are treated as TCV only to the extent of the incremental new value. New Business TCV represents TCV attributable to expansion and new scope for existing clients and new logo contracts. ClearPath TCV is driven by software license renewals, and as such, changes in timing or terms of renewals can lead to fluctuations from period to period. The company believes that actual revenue reflects the most relevant measure necessary to understand the company's results of operations, but TCV can be a useful leading indicator of the company's ability to generate future revenue over time, subject to certain inherent limitations. Measuring TCV involves the use of estimates and judgments and the extent and timing of conversion of TCV to revenue may be impacted by, among other factors, the types of services and solutions sold, contract duration, the pace of client spending, actual volumes of services delivered as compared to the volumes anticipated at the time of contract signing, and contract modifications, including, without limitation, contract nullification and termination, over the lifetime of a contract. Investors are cautioned that TCV should not be relied upon as a substitute for, or considered in isolation from, measures in accordance with GAAP.

⁽⁴⁾ Book-to-bill – Represents total contract value booked divided by revenue in a given period.

⁽⁵⁾ New Business – Represents expansion and new scope for existing clients and new logo contracts.

⁽⁶⁾ Non-GAAP operating profit – This measure excludes pretax pension and postretirement expense, pretax goodwill and intangible asset impairment charge and pretax charges or gains associated with certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings, and cost-reduction activities and other expenses.

⁽⁷⁾ EBITDA & adjusted EBITDA – Earnings before interest, taxes, depreciation and amortization (EBITDA) is calculated by starting with net income (loss) attributable to Unisys Corporation common shareholders and adding or subtracting the following items: net income (loss) attributable to noncontrolling interests, interest expense (net of interest income), provision for (benefit from) income taxes, depreciation and amortization. Adjusted EBITDA further excludes pension and postretirement expense; goodwill and intangible asset impairment charge, foreign exchange (gains) losses, debt extinguishment, certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; cost-reduction activities and other expenses; non-cash share-based expense; and other (income) expense adjustments.

⁽⁸⁾ Non-GAAP net income (loss) and non-GAAP diluted earnings (loss) per share – These measures exclude pension and postretirement expense and charges or (credits) in connection with goodwill and intangible asset impairment; foreign exchange (gains) losses, debt extinguishment, certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; and cost-reduction activities and other expenses. The tax amounts related to these items for the calculation of non-GAAP diluted earnings (loss) per share include the current and deferred tax expense and benefits recognized under GAAP for these items.

⁽⁹⁾ Free cash flow – Represents cash flow from operations less capital expenditures.

⁽¹⁰⁾ Pre-pension and postretirement free cash flow – Represents free cash flow before pension and postretirement contributions.

⁽¹¹⁾ Adjusted free cash flow – Represents free cash flow less cash used for pension and postretirement funding; debt extinguishment, certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; and cost-reduction activities and other payments.

⁽¹²⁾ ClearPath® – Represents software license and related support services, primarily ClearPath Forward^™, within the company's ECS segment.

⁽¹³⁾ Technology Solutions & Services (TS&S) – These measures include the revenue, gross profit and gross profit margin of the company's DWS segment, CA&I segment and ECS segment, excluding ClearPath software license and support services. The company provides these measures to allow investors to isolate the impact of software license renewals, which tend to be significant and impactful based on timing, and related support services in order to evaluate the company's business outside of these areas.

Forward-Looking Statements 
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Unisys cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond Unisys' ability to control or estimate precisely, such as estimates of future market conditions, fluctuations in foreign currency exchange rates, the behavior of other market participants and that TCV is based, in part, on the assumption that each of those contracts will continue for their full contracted term. Words such as "anticipates," "estimates," "expects," "projects," "may," "will," "intends," "plans," "believes," "should" and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management's current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon Unisys. There can be no assurance that future developments will be in accordance with management's expectations, assumptions and beliefs or that the effect of future developments on Unisys will be those anticipated by management. Because actual results may differ materially from those expressed or implied by these forward-looking statements, we caution readers not to place undue reliance on these statements. Forward-looking statements in this release and the accompanying presentation include, but are not limited to, statements made in Mr. Thomson's and Ms. McCann's quotations, any projections or expectations of revenue growth, margin expansion, achievement of operational efficiencies and savings, effective use of technology, investments in our solutions and artificial intelligence adoption and innovation, TCV and New Business TCV, the impact of new logo signings, backlog, book-to-bill⁽⁴⁾, full-year 2026 revenue growth and profitability guidance, including reported and constant currency revenue, growth and the foreign currency exchange rate assumptions underlying the translation of constant currency guidance to reported guidance, TS&S constant currency revenue growth, ClearPath revenue, non-GAAP operating profit margin, free cash flow generation and the assumptions and other expectations made in connection with our full-year 2026 financial guidance, the reduction of uncertainty and volatility of cash requirements, including pension contributions, our pension liability, debt extinguishment, future economic benefits from net operating losses and statements regarding future economic conditions or performance.

Additional information and factors that could cause actual results to differ materially from Unisys' expectations are contained in Unisys' filings with the U.S. Securities and Exchange Commission (SEC), including Unisys' Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC's web site, http://www.sec.gov. Information included in this release is representative as of the date of this release only, and any forward-looking statement speaks only as of the date on which that statement is made. While Unisys periodically reassesses material trends and uncertainties affecting Unisys' results of operations and financial condition in connection with its preparation of management's discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, Unisys does not, by including this statement, assume any obligation to review, revise or update any forward-looking statement in light of future events or circumstances, except as required by applicable law.

Non-GAAP Information
This release includes certain non-GAAP financial measures that exclude certain items such as pension and postretirement expense; goodwill and intangible asset impairment charge, foreign exchange (gains) losses, debt extinguishment, certain legal and other matters related to professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; and cost-reduction activities and other expenses that the company believes are not indicative of its ongoing operations, as they may be unusual or non-recurring. The inclusion of such items in financial measures can make the company's profitability and liquidity results difficult to compare to prior periods or anticipated future periods and can distort the visibility of trends associated with the company's ongoing performance. Management also believes that non-GAAP measures are useful to investors because they provide supplemental information about the company's financial performance and liquidity, as well as greater transparency into management's view and assessment of the company's ongoing operating performance.

Non-GAAP financial measures are often provided and utilized by the company's management, analysts, and investors to enhance comparability of year-over-year results. These items are uncertain, depend on various factors, and could have a material impact on the company's GAAP results for the applicable period. These measures should not be relied upon as substitutes for, or considered in isolation from, measures calculated in accordance with U.S. GAAP. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below except for financial guidance and other forward-looking information since such a reconciliation is not practicable without unreasonable efforts as the company is unable to reasonably forecast certain amounts that are necessary for such reconciliation. This information has been provided pursuant to the requirements of SEC Regulation G.

About Unisys 
Unisys is a global technology solutions company that powers breakthroughs for the world's leading organizations. Our solutions – cloud, AI, digital workplace, applications and enterprise computing – help our clients challenge the status quo and unlock their full potential. To learn how we have been helping clients push what's possible for more than 150 years, visit unisys.com and follow us on LinkedIn.

RELEASE NO.: 0729/10062

Unisys and other Unisys products and services mentioned herein, as well as their respective logos, are trademarks or registered trademarks of Unisys Corporation. Any other brand or product referenced herein is acknowledged to be a trademark or registered trademark of its respective holder.

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