Unisys misses Q3 revenue estimates

Unisys

05/11/2025 21:25

Overview

Unisys Q3 revenue falls 7.4% YoY, missing analyst expectations

Company reiterates full-year non-GAAP operating profit margin guidance

Unisys advances pension strategy with $320 mln annuity purchase transaction

Outlook

Unisys lowers full-year constant currency revenue guidance to (4.0)% to (3.0)%

Unisys reiterates full-year non-GAAP operating profit margin guidance of 8% to 9%

Company expects momentum in AI solutions to support Ex-L&S gross margin expansion

Result Drivers

LICENSE & SUPPORT - Strong client retention and consumption in L&S platforms, key to cash generation, per CEO Michael Thomson

AI SOLUTIONS MOMENTUM - New AI solutions gaining traction, expected to support Ex-L&S gross margin expansion

PENSION STRATEGY - Annuity purchase transaction to transfer $320 mln of pension liabilities, part of strategy to reduce $600 mln by 2026

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$460.20 mln
$493.78 mln (4 Analysts)
Q3 Net Income
-$308.90 mln
Q3 Adjusted Operating Income
$24.80 mln
Q3 Gross Profit
$117.20 mln
Q3 Operating Income
-$33.50 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for Unisys Corp is $7.50, about 55.1% above its November 4 closing price of $3.37

The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release: ID:nPn9QXv19a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)