3Q26
Filed Nov 4, 2026Unisys Continues Strong New Business Signings and Raises Full-Year Revenue Guidance
Third-quarter revenue, gross margin, operating profit and new-business TCV improved year over year, and the company raised constant-currency revenue guidance. However, GAAP net loss remained substantial due to a $151 million net-of-tax non-cash pension settlement loss, TS&S gross margin declined, and third-quarter free cash flow was negative.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30, 2026GAAP | $471.5M | – | 2.5% |
| Revenue, nine months ended September 30, 2026GAAP | $1.38B | – | 0.5% |
| Revenue change in constant currency, three months ended September 30, 2026other | 0.6% | – | 0.6% |
| Revenue change in constant currency, nine months ended September 30, 2026other | 0.5% | – | 0.5% |
| Gross profit, three months ended September 30, 2026GAAP | $126M | – | – |
| Gross profit margin, three months ended September 30, 2026GAAP | 26.7% | – | up 120 bps YoY |
| Gross profit, nine months ended September 30, 2026GAAP | $355.8M | – | – |
| Gross profit margin, nine months ended September 30, 2026GAAP | 25.7% | – | – |
| TS&S revenue, three months ended September 30, 2026other | $387.1M | – | 2.6% |
| TS&S revenue, nine months ended September 30, 2026other | $1.16B | – | 2.6% |
| TS&S gross profit, three months ended September 30, 2026other | $64.3M | – | – |
| TS&S gross profit margin, three months ended September 30, 2026other | 16.6% | – | decreased 200 bps YoY |
| TS&S gross profit, nine months ended September 30, 2026other | $214.8M | – | – |
| TS&S gross profit margin, nine months ended September 30, 2026other | 18.5% | – | – |
| ClearPath revenue, three months ended September 30, 2026other | $84.4M | – | 1.7% |
| ClearPath revenue, nine months ended September 30, 2026other | $219.6M | – | (9.1)% |
| ClearPath gross profit, three months ended September 30, 2026other | $61.7M | – | – |
| ClearPath gross profit margin, three months ended September 30, 2026other | 73.1% | – | – |
| ClearPath gross profit, nine months ended September 30, 2026other | $141M | – | – |
| ClearPath gross profit margin, nine months ended September 30, 2026other | 64.2% | – | – |
| Operating profit (loss), three months ended September 30, 2026GAAP | $23.7M | – | – |
| Operating profit (loss) margin, three months ended September 30, 2026GAAP | 5.0% | – | improved YoY |
| Operating profit (loss), nine months ended September 30, 2026GAAP | $7M | – | – |
| Operating profit (loss) margin, nine months ended September 30, 2026GAAP | 0.5% | – | – |
| Non-GAAP operating profit, three months ended September 30, 2026non-GAAP | $34M | – | – |
| Non-GAAP operating profit margin, three months ended September 30, 2026non-GAAP | 7.2% | – | improved 180 bps YoY |
| Non-GAAP operating profit, nine months ended September 30, 2026non-GAAP | $79.1M | – | – |
| Non-GAAP operating profit margin, nine months ended September 30, 2026non-GAAP | 5.7% | – | – |
| Net loss attributable to Unisys Corporation, three months ended September 30, 2026GAAP | ($201.0 million) | – | – |
| Net loss attributable to Unisys Corporation, nine months ended September 30, 2026GAAP | ($332.1 million) | – | – |
| Non-GAAP net loss attributable to Unisys Corporation, three months ended September 30, 2026non-GAAP | ($8.5 million) | – | – |
| Non-GAAP net loss income attributable to Unisys Corporation, nine months ended September 30, 2026non-GAAP | ($24.0 million) | – | – |
| Basic loss per share attributable to Unisys Corporation, three months ended September 30, 2026GAAP | ($2.76) | – | – |
| Diluted loss per share attributable to Unisys Corporation, three months ended September 30, 2026GAAP | ($2.76) | – | – |
| Non-GAAP diluted loss per share, three months ended September 30, 2026non-GAAP | ($0.12) | – | – |
| Basic loss per share attributable to Unisys Corporation, nine months ended September 30, 2026GAAP | ($4.58) | – | – |
| Diluted loss per share attributable to Unisys Corporation, nine months ended September 30, 2026GAAP | ($4.58) | – | – |
| Non-GAAP diluted loss earnings per share, nine months ended September 30, 2026non-GAAP | ($0.33) | – | – |
| EBITDA, three months ended September 30, 2026other | ($138.2 million) | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $59.7M | – | – |
| Adjusted EBITDA margin, three months ended September 30, 2026non-GAAP | 12.7% | – | – |
| EBITDA, nine months ended September 30, 2026other | ($164.2 million) | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $159.4M | – | – |
| Adjusted EBITDA margin, nine months ended September 30, 2026non-GAAP | 11.5% | – | – |
| Cash (used for) provided by operations, three months ended September 30, 2026GAAP | ($35.8 million) | – | – |
| Free cash flow, three months ended September 30, 2026non-GAAP | ($57.7 million) | – | – |
| Pre-pension and postretirement free cash flow, three months ended September 30, 2026non-GAAP | ($26.8 million) | – | – |
| Adjusted free cash flow, three months ended September 30, 2026non-GAAP | ($18.7 million) | – | – |
| Cash used for operations, nine months ended September 30, 2026GAAP | ($66.5 million) | – | – |
| Free cash flow, nine months ended September 30, 2026non-GAAP | ($132.2 million) | – | – |
| Pre-pension and postretirement free cash flow, nine months ended September 30, 2026non-GAAP | ($43.2 million) | – | – |
| Adjusted free cash flow, nine months ended September 30, 2026non-GAAP | ($14.2 million) | – | – |
| New Business TCV, 3Q26other | $221M | 15% | 78% |
| TS&S Renewals TCV, 3Q26other | $275M | 40% | 20% |
| ClearPath Renewals TCV, 3Q26other | $98M | 188% | 61% |
| Total company TCV, 3Q26other | $594M | 41% | 43% |
| New Business TCV, YTD26other | $571M | – | 61% |
| TS&S Renewals TCV, YTD26other | $545M | – | (5)% |
| ClearPath Renewals TCV, YTD26other | $174M | – | 33% |
| Total company TCV, YTD26other | $1.29B | – | 22% |
| Backlog, third quarter of 2026other | $2.92B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Digital Workplace Solutions (DWS)Higher hardware revenue. | $130.2M | – | 3.9% |
| Cloud, Applications & Infrastructure Solutions (CA&I)Revenue declined 0.1% YoY, or down 1.2% in constant currency; gross profit margin increased 100 bps YoY primarily driven by delivery improvements. | $180.3M | – | (0.1)% |
| Enterprise Computing Solutions (ECS)Higher specialized project work in the business processing solutions. | $140.6M | – | 5.6% |
| OtherNo driver was provided. | $20.4M | – | – |
Full-year 2026 outlook
- RevenueRevenue growth in constant currency: (3.0)% to (1.5)%; reported revenue growth: (0.4)% to 1.1%, based on exchange rates as of the end of 3Q26.
- NoteNon-GAAP operating profit margin: 9.0% to 11.0%.
- NoteClearPath revenue of approximately $425 million.
- NoteTS&S constant currency revenue growth of (3.0)% to (1.0)%.
What drove it
- Total gross profit margin improved 120 bps YoY primarily from a higher mix of software licenses relative to hardware within ClearPath renewals, partially offset by higher cost reduction charges.
- DWS gross profit margin decreased 670 bps YoY, primarily due to known client attrition and increased implementation and delivery costs.
- CA&I gross profit margin increased 100 bps YoY, primarily driven by delivery improvements.
- ECS gross profit margin increased 930 bps YoY, primarily driven by a higher mix of software licenses relative to hardware within ClearPath renewals.
- During 3Q26, gross profit margin and TS&S gross profit margin benefited by approximately 50 and 70 bps, respectively, from a first-quarter transaction within the United Kingdom business process outsourcing consolidated joint venture.
- The United Kingdom transaction is expected to generate gross profit benefit of approximately $3 million quarterly and $12 million for full-year 2026, with the financial impact fully recognized by year end.
- The company purchased a group annuity contract to transfer approximately $200 million of projected U.S. defined benefit pension liabilities to a third-party insurer, funded with plan assets.
Concerns
- Net loss attributable to Unisys Corporation included a $151 million non-cash pension settlement loss, net of tax.
- TS&S gross profit margin declined to 16.6% from 18.6%.
- DWS gross profit margin declined to 9.5% from 16.2%.
- Third-quarter cash used for operations was ($35.8 million), free cash flow was ($57.7 million), and adjusted free cash flow was ($18.7 million).
- Full-year 2026 revenue growth in constant currency is guided to (3.0)% to (1.5)%.
- TS&S constant currency revenue growth is guided to (3.0)% to (1.0)%.
What to watch
- Conversion of $594 million of 3Q26 total company TCV and $2.92 billion of backlog into revenue.
- ClearPath revenue relative to the approximately $425 million full-year 2026 assumption.
- TS&S constant currency revenue growth relative to the (3.0)% to (1.0)% full-year 2026 assumption.
- The expected full recognition by year end of the United Kingdom transaction's financial impact.
- The additional pension settlement expected in the first half of 2027 to substantially achieve the approximately $600 million reduction target.
Balance sheet and cash flow
- Cash and cash equivalents were $264.2 million as of September 30, 2026, compared with $413.9 million as of December 31, 2025.
- Current maturities of long-term debt were $12.3 million and long-term debt was $719.1 million as of September 30, 2026.
- Long-term pension and postretirement liabilities were $492.1 million as of September 30, 2026, compared with $517.7 million as of December 31, 2025.
- Total Unisys Corporation stockholders' deficit was ($425.1 million) as of September 30, 2026, compared with ($282.6 million) as of December 31, 2025.
- Cash used for operations in 3Q26 was impacted by the timing of the cash interest payment associated with the 10.625% Senior Secured Notes due 2031.
- Cash provided by operations in 3Q25 included receipt of $25 million related to a settled legal matter.
Analysis
Unisys reported $471.5 million of 3Q26 revenue, up 2.5% year over year and up 0.6% in constant currency. TS&S revenue rose 2.6%, or 0.9% in constant currency, while ClearPath revenue increased 1.7%. New-business TCV rose 78% to $221 million and total-company TCV increased 43% to $594 million. Backlog was $2.92 billion, compared with $2.83 billion for the third quarter of 2025.
Profitability improved at the consolidated level. Gross profit margin increased to 26.7% from 25.5%, primarily reflecting a higher mix of software licenses relative to hardware within ClearPath renewals. GAAP operating profit was $23.7 million, compared with a $33.5 million operating loss, and non-GAAP operating profit margin increased 180 bps to 7.2%. Adjusted EBITDA increased to $59.7 million from $48.2 million, and adjusted EBITDA margin increased to 12.7% from 10.5%.
The segment mix was uneven. DWS revenue increased 3.9% on higher hardware revenue, but its gross profit margin declined 670 bps to 9.5% due to known client attrition and increased implementation and delivery costs. CA&I revenue declined 0.1%, while gross profit margin increased 100 bps to 20.6% on delivery improvements. ECS revenue increased 5.6%, supported by specialized project work in business processing solutions, and its gross profit margin rose 930 bps to 55.5% from favorable ClearPath license mix.
GAAP net loss attributable to Unisys Corporation was ($201.0 million), including a $151 million net-of-tax non-cash pension settlement loss associated with the group annuity contract. Cash conversion was negative, with cash used for operations of ($35.8 million) and free cash flow of ($57.7 million). The company raised its full-year constant-currency revenue-growth guidance to (3.0)% to (1.5)% from prior issued guidance of (5.0)% to (3.5)% and reaffirmed its 9.0% to 11.0% non-GAAP operating profit margin guidance. The revised outlook still assumes declining full-year revenue and TS&S constant-currency revenue growth of (3.0)% to (1.0)%.
Management, verbatim
The year continues to gain momentum, with the third quarter building on a solid first half. New business signings once again were strong, and client interest continues to deepen across the portfolio. Our AI-First execution is transforming our delivery, opening new markets in agentic services, AI infrastructure and the ClearPath ecosystem.
Michael Thomson, Unisys CEO and President
We are pleased with our third quarter results. Revenue came in ahead of our expectations, led by TS&S, and our non-GAAP operating profit margin of 7.2% was above what we had guided. Together with our fourth quarter visibility, this supports the increase to our full-year revenue guidance and our reaffirmed profitability guidance.
Deb McCann, Unisys Chief Financial Officer
Not in the filing
stated, not guessed- Prior-quarter values for revenue, profitability, EPS, cash flow, balance-sheet metrics and segments were not reported.
- GAAP and non-GAAP tax rates were not reported.
- Capital returns, including share repurchases and dividends, were not reported.
- A previous-release outlook section was not provided; therefore, no actual-versus-prior-guidance comparison is included.
- Gross-margin, operating-expense and tax-rate guidance were not reported.
- Revenue and gross-profit metrics for the Other segment were only partially reported: Other revenue was reported, but Other gross profit, gross profit margin and related comparisons were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.