Unisys Stock Earnings Reports

Unisys started 2026 with modest outperformance versus expectations: Q1 revenue was $438M (up 1.3% reported; down 4.5% in constant currency) and Ex-L&S revenue grew 3% reported. New business TCV was $158M (up 45% YoY) and total TCV was $274M; trailing 12-month book-to-bill was 1.2x and backlog was $2.96B. Gross margin expanded (+80 bps company; +170 bps Ex-L&S) driven by intelligent automation and workforce optimization. Management highlighted strong demand for AI-enabled offerings (agentic service desk, intelligent operations, DSS) and meaningful wins across quick-service restaurants, public sector (Australia Department of Health, Disability and Aging), education and Air Traffic Control (ENAIRE). Field services and AI data-center installation/maintenance were called out as growing TAM areas. The company reaffirmed full-year guidance (constant-currency revenue decline of 6.5%–4.5%; non-GAAP operating margin 9%–11%) and reiterated target Ex-L&S gross margin improvement of ~100–200 bps for the year. Cash and liquidity remain solid ($380M cash, undrawn $125M ABL, no material debt maturities until 2031); net leverage (including pension) improved to 2.9x. Free cash flow was negative $26M in the quarter (expected full-year free cash flow ~ negative $25M, or +$72M pre-pension). Management noted pension funding stability after prior actions and indicated additional (cashless) annuity purchases are planned but subject to market timing. Key investor takeaways: accelerating AI-driven wins and margin expansion in Ex-L&S, improving TCV/book-to-bill and backlog, reaffirmed guidance with conservative macro assumptions, continued focus on field services/data-center opportunities, and disciplined cash/pension management.