Unisys Reports 2Q26 Results: New Business Signings Surge and Guidance Reaffirmed

Unisys 2Q26 Financial Overview

Unisys Corporation, a prominent technology solutions provider, recently released its financial results for the second quarter of 2026 (2Q26). Despite reporting a revenue of $473.5 million, which marks a 2.0% decrease year-over-year (YoY), there are notable highlights worth discussing. Not only did the company witness significant new business signings, but it has also reaffirmed its overall revenue guidance for the year.

Revenue Breakdown

The company's technology solutions and services (TSS) sector generated $403.8 million during the second quarter, reflecting a modest 2.0% increase from the prior year. However, when adjusted for constant currency, this represents a decline of 1.3%. The gross profit margin for TSS grew by 170 basis points to 19.3%, indicating some success in improving operational efficiency despite the challenging environment.

The decline in overall revenue can be attributed to timing issues surrounding ClearPath license renewals. ClearPath revenue was reported at $69.7 million, down 20.4% YoY, impacted significantly by the fluctuations in renewal timing.

Strong Signs of New Business

A standout feature of 2Q26 results is the impressive 57% YoY increase in total contract value (TCV) for new business, totaling $192 million. Unisys CEO Michael Thomson emphasized the positive trajectory of new signings and engaging clients, painting an optimistic picture regarding the company's future prospects. He stated, "The year is progressing well, with our strong second quarter performance building on the good start we had in the first quarter."

Moreover, the company reported a backlog of work valued at $2.82 billion, slightly lower than the previous year's corresponding period. Nonetheless, the ability to lock in new contracts indicates a favorable outlook for revenue generation in the coming quarters.

Adjusted Financial Measures

In terms of non-GAAP measures, the company reported an operating profit of $25.3 million, compared to $36.8 million in the prior year. The non-GAAP operating profit margin was 5.3%, down from 7.6%. These figures reflect various adjustments, including a goodwill impairment charge and the continued focus on cost savings across its service offerings.

Cost Management Initiatives

Unisys is also working on various initiatives to improve cost management. The improvements in delivery and a focus on labor cost efficiency contributed to the overall gross profit improvement in the TSS segment. CFO Deb McCann noted that liquidity remains strong and that proactive measures surrounding their pension obligations indicate ongoing efforts to enhance financial stability.

2026 Guidance Outlook

Looking ahead, Unisys remains committed to its previously revised revenue growth targets for 2026. The company has communicated expectations of a revenue decline of between 5.0% and 3.5% on a constant currency basis, paired with a consistent non-GAAP operating profit margin between 9.0% and 11.0%. This guidance builds confidence that Unisys is poised for stabilization as it navigates market dynamics.

Conference Call Details

For investors and stakeholders, Unisys will hold a conference call on July 30, 2026, at 8 a.m. ET to discuss the second-quarter results further. Accessing this event will provide deeper insights into the company's operations and strategic focus going forward.

Conclusion

The second quarter of 2026 demonstrates Unisys's resilience and adaptability in a fluctuating market environment. While revenue numbers faced headwinds, the uptick in new business signings and a robust guidance reaffirm the company's strategic foundation for future growth. As it continues to leverage its AI-First approach, Unisys is well-positioned to sustain competitiveness and achieve operational efficiencies that will serve it well into the future.