Unisys Corporation

What they do

Unisys sells IT outsourcing, infrastructure modernization, cloud, applications, data and security services through global delivery operations. Its offerings are organized into three reportable segments: Digital Workplace Solutions (DWS), Cloud, Applications & Infrastructure Solutions (CA&I) and Enterprise Computing Solutions (ECS), which contains the ClearPath Forward software franchise. In 2Q26 the company renamed License and Support to ClearPath and Excluding License and Support to Technology Solutions & Services (TS&S); the change did not affect segments or revenue recognition.

Revenue drivers

• Technology Solutions & Services (TS&S) — Services across DWS, CA&I and non-ClearPath ECS; $403.8 million of 2Q26 revenue, up 2.0% YoY but down 1.3% in constant currency.
• ClearPath (software license and support) — Primarily ClearPath Forward license renewals within ECS; $69.7 million in 2Q26, down 20.4% YoY, highly timing-dependent from quarter to quarter.
• Full-year 2025 lines — L&S revenue was $428.1 million and Ex-L&S revenue was $1,522.0 million of $1,950.1 million total, with the decline driven by lower DWS and CA&I volumes.
• New business signings — Total contract value of new business was $192 million in 2Q26, up 57% YoY, the primary forward indicator cited by management.

Recent performance

2Q26 revenue was $473.5 million, down 2.0% YoY and down 5.2% in constant currency, driven by ClearPath license renewal timing. Gross margin fell to 24.8% from 26.9%, while TS&S gross margin rose to 19.3% from 17.6% on delivery improvements and labor cost savings. The quarter included a $47.2 million goodwill impairment in DWS, producing a net loss of $95.3 million, or $1.31 per diluted share, versus a $20.1 million loss a year earlier. GAAP operating loss was $32.9 million, but non-GAAP operating profit was $25.3 million and adjusted EBITDA was $53.5 million. Full-year 2025 revenue was $1,950.1 million with a net loss of $339.8 million.

Strategy

Management is pursuing an 'AI-First' approach across the business, which it describes as foundational for growth, competitiveness and efficiency. The company continues cost-reduction actions, recording $30.5 million of net charges in 2025 and $6.1 million in 2Q26, mainly workforce reductions. It is de-risking legacy pensions: a roughly $316 million group annuity purchase in 2025 transferred obligations from a U.S. defined benefit plan and drove a $227.7 million pre-tax settlement loss. The company has also renamed its solution groupings to ClearPath and TS&S to better reflect its offerings, and reports improving estimated global pension deficit.

Risks

• Installed-base concentration — A significant portion of revenue comes from the installed base under long-term contracts, so client non-renewal, exit or merger could materially reduce revenue.
• ClearPath renewal timing — Software license renewals are lumpy and can swing quarterly revenue and gross profit considerably, as seen in the 20.4% 2Q26 ClearPath decline.
• DWS goodwill impairment — DWS has now incurred goodwill impairment charges of $39.1 million (2024), $55.0 million (2025) and $47.2 million (2Q26), signaling pressure on that segment's value.
• Negative equity and leverage — Shareholder equity was negative $367.4 million at 2026-06-30 and long-term debt was $700.5 million at 2025-12-31 after the 10.625% 2031 Notes issuance.

Outlook

On 2026-07-29 Unisys reaffirmed its previously raised 2026 full-year constant-currency revenue growth guidance and maintained its non-GAAP operating profit margin guidance. That guidance assumes ClearPath revenue of approximately $425 million for the year. Management said liquidity remains strong and the estimated global pension deficit is improving, advancing toward its goal of fully removing U.S. pensions. The company also cited a first-quarter UK business process outsourcing joint venture transaction expected to add roughly $3 million of gross margin quarterly and $12 million for full-year 2026.