Unisys Q2 revenue falls on ClearPath license renewals

Unisys

29/07/2026 21:54

Overview
Global tech solutions provider's Q2 revenue fell 2% yr/yr, beating analyst expectations
Company posted Q2 net loss of $95.3 mln, including $47.2 mln goodwill impairment charge

Outlook
Unisys reaffirms 2026 full-year constant currency revenue growth guidance of (5.0)% to (3.5)%
Company maintains 2026 non-GAAP operating profit margin guidance of 9.0% to 11.0%
Unisys guidance assumes ClearPath revenue of approximately $425 mln for 2026

Result Drivers
CLEARPATH LICENSE TIMING - Co said declines in revenue and gross profit margin were mainly due to timing of ClearPath license renewals
TS&S MARGIN IMPROVEMENT - TS&S gross profit margin rose, driven by delivery improvement and labor cost savings, partially offset by lower-margin DWS business
DWS MARGIN PRESSURE - DWS gross profit margin fell due to client attrition, higher proportion of lower-margin hardware, and increased delivery costs from new business implementation

Company press release: ID:nPn9B5B0ma

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$473.50 mln
$448.88 mln (5 Analysts)
Q2 Net Loss
 
$95.30 mln
 
Q2 Gross Profit
 
$117.30 mln
 
Q2 Operating Income
 
-$32.90 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 $6.00, about 74.9% above its July 28 closing price of $3.43
The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 3 three months ago

Reuters Recommended Reads
July 29 - Cognizant lifts annual profit forecast on strong financial services growth
July 29 - Canada's CGI Q3 revenue slightly beats estimates
July 29 - Sopra Steria raises growth target on strong European AI, cybersecurity demand

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