UNISYS CORP (UIS): Results of Operations and Financial Condition
UNISYS CORP (UIS) filed an SEC Form 8-K — Results of Operations and Financial Condition. News Release 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 $4
How this was made
The 30-second read
Why it matters
The filing updates the market with concrete 2Q26 financial outcomes (revenue, margins, operating loss, impairment) and reaffirms 2026 constant-currency guidance, while highlighting TCV New Business strength and ClearPath renewal timing as a key swing factor.
Market read
Traders can reassess UIS’s forward risk-reward using reaffirmed guidance, the magnitude of the DWS impairment, and the direction of ClearPath renewals versus rising New Business TCV.
What to watch
ClearPath license renewals timing is identified as a primary driver of revenue and margin declines; traders may want to separate timing effects from underlying demand trends when assessing forward quarters.
Unisys Reports Strong New Business Signings and Reaffirms 2026 Full-Year Guidance
New Business TCV increased 57% YoY and TS&S gross profit margin improved 170 bps YoY, but total revenue declined 2.0% YoY, gross profit margin fell 210 bps YoY, and the company reported a GAAP net loss attributable to Unisys Corporation of ($95.3 million), including a $47.2 million non-cash goodwill impairment charge.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $473.5 million | – | (2.0)% |
| Revenue growth in constant currencyother | (5.2)% | – | – |
| Year-to-date revenueGAAP | $911.1 million | – | (0.5)% |
| Year-to-date revenue growth in constant currencyother | (4.8)% | – | – |
| Gross profitGAAP | $117.3 million | – | – |
| Gross profit marginGAAP | 24.8% | – | down 210 bps YoY |
| Year-to-date gross profitGAAP | $229.8 million | – | – |
| Year-to-date gross profit marginGAAP | 25.2% | – | – |
| TS&S revenueGAAP | $403.8 million | – | 2.0% |
| TS&S revenue growth in constant currencyother | (1.3)% | – | – |
| TS&S gross profitGAAP | $77.8 million | – | – |
| TS&S gross profit marginGAAP | 19.3% | – | up 170 bps YoY |
| Operating lossGAAP | ($32.9 million) | – | – |
| Operating loss marginGAAP | (6.9)% | – | – |
| Non-GAAP operating profitnon-GAAP | $25.3 million | – | – |
| Non-GAAP operating profit marginnon-GAAP | 5.3% | – | – |
| Net loss attributable to Unisys CorporationGAAP | ($95.3 million) | – | – |
| Non-GAAP net loss attributable to Unisys Corporationnon-GAAP | ($5.7 million) | – | – |
| EBITDAother | ($39.8 million) | – | – |
| Adjusted EBITDAnon-GAAP | $53.5 million | – | – |
| Adjusted EBITDA as a percentage of revenuenon-GAAP | 11.3% | – | – |
| Cash used for operationsGAAP | ($26.3 million) | – | – |
| Free cash flownon-GAAP | ($49.0 million) | – | – |
| Pre-pension and postretirement free cash flownon-GAAP | ($19.3 million) | – | – |
| Adjusted free cash flownon-GAAP | ($9.4 million) | – | – |
| Cash and cash equivalentsGAAP | $324.3 million | – | – |
| New Business TCVother | $192 million | 22% | 57% |
| TS&S Renewals TCVother | $196 million | 165% | (26)% |
| ClearPath Renewals TCVother | $34 million | (19)% | (31)% |
| Total company TCVother | $422 million | 54% | (3)% |
| Backlogother | $2.82 billion | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Digital Workplace Solutions (DWS)Revenue increased 2.8% YoY, or down 1.1% in constant currency. 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. | $141.9 million | – | 2.8% |
| Cloud, Applications & Infrastructure Solutions (CA&I)Revenue declined 0.4% YoY, down 3.2% in constant currency. Gross profit margin was 25.0%, an increase of 420 bps YoY, primarily driven by delivery improvement and labor cost savings initiatives. | $184.4 million | – | (0.4)% |
| Enterprise Computing Solutions (ECS)Revenue declined 10.1% YoY, down 13.2% in constant currency. 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. | $126.0 million | – | (10.1)% |
2026 full-year outlook
- RevenueRevenue growth in constant currency: (5.0)% to (3.5)%
- NoteNon-GAAP operating profit margin: 9.0% to 11.0%
- NoteReported revenue growth: (2.6)% to (1.1)%, based on exchange rates as of the end of 2Q26
- NoteClearPath revenue of approximately $425 million
- NoteTS&S constant currency revenue growth of (6.0)% to (4.0)%
What drove it
- The declines in total revenue and gross profit margin were primarily driven by the timing of ClearPath license renewals.
- TS&S gross profit margin benefited from delivery improvement and labor cost savings initiatives.
- 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.
- The United Kingdom business process outsourcing consolidated joint venture transaction is expected to generate gross profit benefit of approximately $3 million quarterly and $12 million for the full 2026 year.
- New Business TCV increased 57% YoY to $192 million.
- The company renamed License and Support to ClearPath and Excluding License and Support to Technology Solutions & Services (TS&S). The changes did not impact reportable segments, revenue and expense recognition or measurement, or consolidated financial statements.
Concerns
- Total revenue decreased 2.0% YoY and declined 5.2% in constant currency.
- ClearPath revenue was $69.7 million, down 20.4% YoY and down 22.9% in constant currency.
- DWS gross profit margin decreased 610 bps YoY to 10.8%.
- ECS gross profit margin decreased 870 bps YoY to 44.8%.
- Operating loss included a non-cash goodwill impairment charge of $47.2 million related to the DWS reporting unit, representing the full write-off of its remaining goodwill balance.
- Total company TCV decreased 3% YoY to $422 million, and backlog was $2.82 billion compared with $2.92 billion for the second quarter of 2025.
- Adjusted EBITDA as a percentage of revenue declined to 11.3% from 12.7%.
What to watch
- ClearPath license renewal timing, as it was identified as the primary driver of the declines in revenue and gross profit margin.
- Progress against the guidance assumption of approximately $425 million of ClearPath revenue.
- TS&S constant currency revenue growth relative to the full-year guidance range of (6.0)% to (4.0)%.
- Whether DWS client attrition, hardware mix and implementation delivery costs continue to pressure its gross profit margin.
- Delivery improvement and labor cost savings initiatives supporting TS&S and CA&I profitability.
- Conversion of New Business TCV and backlog into future revenue.
Balance sheet and cash flow
- Cash and cash equivalents were $324.3 million as of June 30, 2026, compared with $413.9 million as of December 31, 2025.
- Cash used for operations was ($26.3 million) in 2Q26, compared with ($316.2 million) in 2Q25.
- Free cash flow was ($49.0 million) in 2Q26, compared with ($336.5 million) in 2Q25.
- Pre-pension and postretirement free cash flow was ($19.3 million) in 2Q26, compared with ($58.3 million) in 2Q25.
- Adjusted free cash flow was ($9.4 million) in 2Q26, compared with ($49.4 million) in 2Q25.
- In the second quarter of 2025, the company made a discretionary contribution of $250 million to its U.S. defined benefit pension plans.
Analysis
Unisys reported a mixed second quarter. Revenue was $473.5 million, down 2.0% YoY and down 5.2% in constant currency. The company attributed the declines in revenue and gross profit margin primarily to the timing of ClearPath license renewals. ClearPath revenue was $69.7 million, down 20.4% YoY, while TS&S revenue increased 2.0% YoY to $403.8 million but declined 1.3% in constant currency.
Profitability reflected material divergence by business. Consolidated gross profit margin was 24.8%, down 210 bps YoY, while TS&S gross profit margin increased 170 bps YoY to 19.3%, supported by delivery improvement and labor cost savings initiatives. CA&I gross profit margin increased 420 bps YoY to 25.0%. DWS gross profit margin fell 610 bps YoY to 10.8% amid known client attrition, a greater proportion of lower-margin hardware revenue and implementation delivery costs. ECS gross profit margin declined 870 bps YoY to 44.8% alongside the ClearPath renewal timing effect.
GAAP earnings were affected by a $47.2 million non-cash goodwill impairment charge related to DWS, which fully wrote off the reporting unit's remaining goodwill balance. The company recorded an operating loss of ($32.9 million) and a net loss attributable to Unisys Corporation of ($95.3 million). On a non-GAAP basis, operating profit was $25.3 million, compared with $36.8 million, while adjusted EBITDA was $53.5 million, compared with $61.4 million. Adjusted EBITDA as a percentage of revenue was 11.3%, compared with 12.7%.
Commercial indicators were uneven but New Business TCV was notably strong. New Business TCV increased 57% YoY to $192 million, while total company TCV declined 3% YoY to $422 million because TS&S Renewals and ClearPath Renewals declined. Backlog was $2.82 billion, compared with $2.92 billion for the second quarter of 2025. The company stated that new business signings and client engagement improved.
Cash flow remained negative but comparisons were affected by the $250 million discretionary U.S. pension contribution made in the second quarter of 2025. Cash used for operations was ($26.3 million), free cash flow was ($49.0 million), and adjusted free cash flow was ($9.4 million). Cash and cash equivalents were $324.3 million at June 30, 2026. Unisys reaffirmed full-year constant-currency revenue growth guidance of (5.0)% to (3.5)% and non-GAAP operating profit margin guidance of 9.0% to 11.0%, with assumptions for approximately $425 million of ClearPath revenue and TS&S constant-currency revenue growth of (6.0)% to (4.0)%.
Management, verbatim
The year is progressing well, with our strong second quarter performance building on the good start we had in the first quarter. 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.
Michael Thomson, Unisys CEO and President
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.
Deb McCann, Unisys Chief Financial Officer
Not in the filing
stated, not guessed- GAAP diluted earnings per share
- Non-GAAP diluted earnings per share
- Debt balance
- Capital returns, including share repurchases and dividends
- Operating expenses
- Tax rate
- Prior-quarter figures for revenue, gross profit, operating income, net income, EBITDA, and cash flow metrics
- Prior guidance figures sufficient to compare actual 2Q26 results with prior guidance
- Segment prior-quarter revenue figures
- Year-to-date segment gross profit and gross profit margin comparisons beyond the figures reported in the filing tables
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K with the company’s 2Q26 results release (Item 2.02) and related financial tables, including segment performance and guidance language.
Ticker impact
Unisys reported 2Q26 revenue of $473.5M, gross margin 24.8%, and reaffirmed 2026 constant-currency guidance, including ClearPath assumptions.
Near-term trading likely hinges on whether investors focus on reaffirmed guidance and TCV strength versus the DWS impairment and ClearPath revenue decline.
The filing provides multiple decision-relevant datapoints: reaffirmed guidance ranges, ClearPath revenue down 20.4% YoY, and a $47.2M non-cash goodwill impairment tied to the DWS reporting unit, alongside improved TCV New Business.
Market effects
Enterprise IT services and outsourcing peers may see read-across from Unisys ClearPath renewal timing and margin drivers (delivery improvement, labor savings, JV benefit).
UK business process outsourcing JV transaction is cited as a margin tailwind, which may matter for regional sentiment around similar deals.
AI-first positioning and liquidity/pension progress may influence broader investor perception of US IT services balance-sheet risk.
Counterpoint
The consolidated operating loss includes a non-cash goodwill impairment, so cash generation and the reaffirmed guidance could be more important than the headline earnings weakness.
Key entities
- companyUnisys Corporation
Reported 2Q26 results, including a DWS goodwill impairment, ClearPath revenue decline, and reaffirmed 2026 guidance.
