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1. Company Snapshot

1.a. Company Description

Unisys Corporation, together with its subsidiaries, operates as an information technology services company worldwide.It operates in Digital Workplace Solutions (DWS); Cloud and Infrastructure Solutions (C&I); and Enterprise Computing Solutions (ECS) segments.The DWS segment provides solutions that transform digital workplaces securely and create exceptional end-user experiences.


The C&I segment offers solutions that drive modern IT service platforms, cloud applications development, intelligent services, and cybersecurity services.The ECS segment provides solutions that harness secure, continuous high-intensity computing, and enable digital services through software-defined operating environments.Its solutions include Unisys InteliServe, a service solution that transforms traditional service desk into an intelligent, user-centric experience aligned with the needs of the modern digital workplace; Unisys CloudForte, a comprehensive managed service offering to help accelerate the secure move of data and applications to the cloud; PowerSuite, a packaged software tool used by enterprise IT to monitor, analyze, troubleshoot and secure collaboration, and communications multi-platform environments; Unisys ClearPath Forward, a software operating environment for high-intensity enterprise computing; and Unisys Stealth security software, which enables trusted identities to access micro-segmented critical assets and safely communicate through secure and encrypted channels.


In addition, the company provides industry solutions, which help law enforcement agencies solve crime; social services case workers assist families; travel and transportation companies manage freight and distribution; and financial institutions deliver omnichannel banking.It serves customers in the government, financial services, and commercial markets through direct sales force, distributors, resellers, and alliance partners.Unisys Corporation was founded in 1886 and is based in Blue Bell, Pennsylvania.

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1.b. Last Insights on UIS

Unisys Corporation's recent performance was negatively impacted by a slew of investigations and allegations of securities law violations. The Securities and Exchange Commission (SEC) charged four companies, including Unisys, with making materially misleading disclosures regarding cybersecurity risks and intrusions. This development has led to a flurry of law firms launching investigations and encouraging investors to inquire about potential securities class action claims. The company's Q1 earnings release also reported a loss of $0.05 per share, lagging revenue estimates.

1.c. Company Highlights

2. Unisys Corporation Delivers Strong Q4 and Full-Year 2025 Results

Unisys Corporation reported a 5.3% year-over-year revenue growth in Q4 2025, with revenue reaching $575 million. For the full year, revenue was $1.95 billion, down 2.9% as reported, but slightly above the midpoint of the revised guidance range. The company's non-GAAP operating margin was 18% in Q4 and 9.1% for the full year, exceeding the top end of the upwardly revised projections. Earnings per share (EPS) came in at $0.86, beating analyst estimates of $0.6.

Publication Date: 09:06

📋 Highlights
  • Q4 Revenue Growth:: Fourth quarter revenue rose 5% YoY to $575M, driven by timing of License & Support (L&S) renewals.
  • Free Cash Flow Surge:: Full-year pre-pension free cash flow hit $128M, up 55% YoY and exceeding guidance of $110M.
  • Pension Risk Mitigation:: $320M pension liability reduction via annuity purchases and $300M deficit reduction to $450M through contributions.
  • AI-Driven Margin Expansion:: Non-GAAP operating margin guidance of 9–11% for 2026, leveraging AI and higher-margin work shifts.

Financial Performance Highlights

The company's actions to streamline corporate costs resulted in a reduction of SG&A as a percent of revenue by nearly 300 basis points over the past three years. Unisys generated $128 million of full-year pre-pension free cash flow in 2025, up 55% from the prior year and above the $110 million expected. The company's liquidity improved, with over $400 million in cash on the balance sheet at year-end, up almost $40 million year over year.

Pension Obligations and Liquidity

Unisys made significant progress in reducing its pension deficit, with a $300 million reduction to $450 million at year-end. The company also executed another annuity purchase, removing approximately $320 million of gross U.S.-defined benefit pension liabilities in 2025. As Debra McCann, CFO, noted, "We have strong liquidity with over $400 million cash on the balance sheet at year end, up almost $40 million year over year."

Valuation Metrics

Using the current valuation metrics, Unisys has a P/S Ratio of 0.09 and an EV/EBITDA of -4.6. The company's Return on Invested Capital (ROIC) is 6.53%, while the Return on Equity (ROE) is 126.78%. These metrics indicate that the company's valuation is largely driven by its expected future performance.

Outlook and Guidance

Unisys expects total company revenue to decline between 6.5%-4.5% in constant currency in 2026. The company is guiding towards a non-GAAP operating profit margin of between 9%-11% for the full year, reflecting the higher margin percentage in L&S and another modest reduction in operating expense in absolute dollar terms. Analysts estimate next year's revenue growth at 2.6%.

3. NewsRoom

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Unisys (NYSE:UIS) versus Triller Group (NASDAQ:ILLR) Financial Contrast

Mar -01

Source: defenseworld.net

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Unisys Q4: Structural Value Opportunity Despite Trap Risk (Rating Upgrade)

Feb -27

Source: seekingalpha.com

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Unisys Corporation (UIS) Q4 2025 Earnings Call Transcript

Feb -25

Source: seekingalpha.com

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Unisys (UIS) Beats Q4 Earnings and Revenue Estimates

Feb -25

Source: zacks.com

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Unisys Announces 4Q and Full-Year 2025 Results

Feb -24

Source: prnewswire.com

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Unisys Strengthens Device Subscription Service To Support Complex Edge Computing and IoT Deployments

Feb -23

Source: prnewswire.com

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Unisys Cybersecurity Leader To Address Shifting Landscapes and AI‑Driven Risks at 2026 Cybersecurity Summit

Feb -18

Source: prnewswire.com

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Unisys Named on Forbes List of America's Best Midsize Employers 2026

Feb -12

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.89%)

6. Segments

Enterprise Computing Solutions

Expected Growth: 1.8%

Unisys' Enterprise Computing Solutions growth is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity needs. The company's expertise in mainframe modernization, application services, and industry-specific solutions resonates with clients seeking to optimize IT infrastructure and reduce costs. Strong partnerships and strategic acquisitions also contribute to the segment's 1.8% growth.

Digital Workplace Solutions

Expected Growth: 1.9%

Unisys' Digital Workplace Solutions growth is driven by increasing demand for cloud-based services, digital transformation, and cybersecurity. The shift to remote work has accelerated adoption of digital workplace solutions, while Unisys' expertise in IT consulting and managed services has enabled it to capitalize on this trend, resulting in a growth rate of 1.9%.

Cloud, Applications and Infrastructure Solutions

Expected Growth: 2.1%

Unisys' Cloud, Applications and Infrastructure Solutions segment growth of 2.1% is driven by increasing demand for digital transformation, cloud migration, and cybersecurity services. Additionally, the company's focus on application modernization, IT consulting, and industry-specific solutions also contribute to the growth. Furthermore, the segment benefits from the rising adoption of hybrid and multi-cloud environments, as well as the need for efficient IT infrastructure management.

Other

Expected Growth: 1.7%

Unisys' 1.7% growth driven by increasing demand for digital transformation services, expansion in cloud and infrastructure services, and growth in industry-specific solutions such as healthcare and financial services. Additionally, the company's cost savings initiatives and strategic partnerships have contributed to its growth.

7. Detailed Products

Cloud and Infrastructure Services

Unisys provides cloud and infrastructure services that help clients to design, build, and manage their IT infrastructure

Application Services

Unisys offers application services that help clients to design, develop, and maintain their applications

Industry Services

Unisys provides industry-specific services that cater to the unique needs of various industries

Security Solutions

Unisys offers security solutions that help clients to protect their IT infrastructure from cyber threats

Digital Workplace Services

Unisys provides digital workplace services that help clients to create a modern and secure digital workplace

Industry-specific Solutions

Unisys offers industry-specific solutions that cater to the unique needs of various industries

8. Unisys Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Unisys Corporation faces moderate threat from substitutes due to the presence of alternative IT services and solutions provided by other companies.

Bargaining Power Of Customers

Unisys Corporation has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Unisys Corporation relies on a few key suppliers for its IT infrastructure and services, giving them moderate bargaining power.

Threat Of New Entrants

The IT services industry has high barriers to entry, including significant capital requirements and the need for specialized expertise, making it difficult for new entrants to compete with Unisys Corporation.

Intensity Of Rivalry

The IT services industry is highly competitive, with many established players competing for market share, leading to a high intensity of rivalry for Unisys Corporation.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 140.86%
Debt Cost 5.42%
Equity Weight -40.86%
Equity Cost 8.65%
WACC 4.09%
Leverage -344.73%

11. Quality Control: Unisys Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
IBEX

A-Score: 5.1/10

Value: 5.6

Growth: 5.7

Quality: 6.1

Yield: 0.0

Momentum: 10.0

Volatility: 3.3

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Usio

A-Score: 4.4/10

Value: 6.6

Growth: 4.7

Quality: 5.8

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

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WidePoint

A-Score: 4.2/10

Value: 5.4

Growth: 4.6

Quality: 4.3

Yield: 0.0

Momentum: 8.5

Volatility: 2.3

1-Year Total Return ->

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Unisys

A-Score: 3.2/10

Value: 10.0

Growth: 2.2

Quality: 3.5

Yield: 0.0

Momentum: 0.5

Volatility: 3.0

1-Year Total Return ->

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TTEC

A-Score: 2.8/10

Value: 9.5

Growth: 1.3

Quality: 2.8

Yield: 1.0

Momentum: 1.0

Volatility: 1.0

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Grid Dynamics

A-Score: 2.6/10

Value: 2.6

Growth: 4.3

Quality: 5.5

Yield: 0.0

Momentum: 0.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.33$

Current Price

2.33$

Potential

-0.00%

Expected Cash-Flows