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Unisys Corporation Reports First Quarter 2026 Results

Unisys Corporation recently released its financial results for the first quarter of 2026, demonstrating solid growth and affirming its full-year guidance. The company reported revenues of $437.6 million, which reflects a 1.3% increase year over year. Despite challenges posed by constant currency fluctuations, Unisys remains optimistic about its future.

Financial Performance Highlights

In contrast to the previous year, Unisys has shown marked improvements in both profitability and new business signings. Key highlights from the report include:

• - Revenue: $437.6 million, up 1.3% YoY; down 4.5% in constant currency.
• - Excluding License and Support (Ex-LS) revenue: $372.1 million, increased by 3.1% YoY.
• - Gross profit margin: 25.7%, an improvement of 80 basis points YoY, while the Ex-LS gross profit margin improved to 19.5%, showing a 170-basis points increase.
• - Operating profit margin: 3.7%, enhancing by 250 basis points YoY, with non-GAAP operating profit margin achieving 4.5%, up 170 basis points from last year.

Unisys also reported a 45% YoY increase in Total Contract Value (TCV) for new business, amounting to $158 million. CEO Michael Thomson emphasized the company’s focus on moving tangible AI use cases into production, underscoring the growing relevance of Unisys for clients and partners alike.

AI Capabilities Expansion

An exciting expansion of Unisys's AI capabilities accompanies the Q1 results, featuring significant product releases for the ClearPath® Forward ecosystem. This initiative is aimed at enhancing enterprise AI initiatives on both their platforms and external systems, solidifying the long-term value proposition of the ClearPath Forward ecosystem.

Financial Guidance Reaffirmed

Unisys Chief Financial Officer, Deb McCann, expressed satisfaction in reaffirming the 2026 full-year guidance for both revenue growth and profitability. With a positive outcome from new client signings and continuous advancements in operational efficiency, Unisys maintains its confidence in the projected revenue outlook for the remainder of the year.

Detailed Revenue Breakdown

The company's revenue segments reflect its strategic positioning:

• - Digital Workplace Solutions (DWS): Revenue slightly declined to $118.2 million, showing a decrease of 0.3% YoY.
• - Cloud, Applications, and Infrastructure Solutions (CAI): Revenue grew to $182 million, with a YoY increase of 3.1%.
• - Enterprise Computing Solutions (ECS): Revenue was reported at $115.2 million, a decline of 2.9% YoY due in part to software license renewal timing issues.

The report also indicates that foreign currency fluctuations positively impacted revenue by 6 percentage points during the current quarter, thereby partially offsetting the observed declines in constant currency figures.

Future Outlook and Upcoming Conference Call

Looking to the future, Unisys reaffirms its guidance for a year of revenue growth in constant currency between (6.5)% to (4.5)%, alongside a non-GAAP operating profit margin target of 9.0% to 11.0%. As a part of maintaining investor relations and transparency, Unisys plans to host a conference call on May 6, 2026, at 8 a.m. Eastern Time to discuss the quarter's results in detail.

Conclusion

Unisys’s first-quarter results signify promising growth and fine-tuning in operational strategy, particularly with the incorporation of AI initiatives and robust client signings. The company continues to position itself as a leader in technology solutions, challenging conventional paradigms and setting a course for future success. Investors and stakeholders are encouraged to monitor the upcoming developments closely as Unisys navigates the year ahead.