BLUE BELL, PA — Unisys Corp. (NYSE: UIS) reaffirmed its 2026 revenue and profit outlook after second-quarter sales declined and gross margins narrowed, while new business contract value rose 57% and its core services business returned to reported growth.
The technology services company posted quarterly revenue of $473.5 million, down 2% from a year earlier and 5.2% in constant currency. Gross profit margin fell 210 basis points to 24.8%, primarily because of the timing of ClearPath license renewals.
New business total contract value reached $192 million, a 57% increase from the prior-year period. Unisys characterized the rise in contract signings as evidence of improving client engagement despite continued pressure on reported revenue.
Technology Solutions & Services revenue increased 2% to $403.8 million, though it declined 1.3% in constant currency. The segment’s gross profit margin rose 170 basis points to 19.3%, benefiting from delivery improvements and labor cost reductions.
“The year is progressing well, with our strong second quarter performance building on the good start we had in the first quarter,” Chief Executive Officer Michael Thomson stated. He identified new business signings and increased client engagement as the quarter’s principal strengths.
Unisys recorded a $47.2 million noncash goodwill impairment charge tied to its Digital Workplace Solutions reporting unit, resulting in the full write-off of the unit’s remaining goodwill.
Digital Workplace Solutions revenue increased 2.8% on a reported basis but declined 1.1% in constant currency. Its gross profit margin fell 610 basis points to 10.8%, reflecting known client attrition, a larger share of lower-margin hardware revenue and transition costs associated with new contracts.
Cloud, Applications & Infrastructure revenue declined 0.4%, or 3.2% in constant currency. Gross profit margin increased 420 basis points to 25%, supported by delivery and labor-cost improvements.
Enterprise Computing Solutions revenue fell 10.1%, or 13.2% in constant currency, while gross profit margin declined 870 basis points to 44.8%. Unisys attributed both decreases primarily to the timing of ClearPath license renewals.
The company also reported that a first-quarter transaction involving its United Kingdom business process outsourcing joint venture added about 50 basis points to overall gross margin and 60 basis points to the Technology Solutions & Services margin during the second quarter.
Unisys expects the transaction to contribute approximately $3 million in gross profit per quarter and $12 million for the full year.
The company maintained its forecast for constant-currency revenue to decline between 5% and 3.5% in 2026. Based on second-quarter exchange rates, that range translates to a reported revenue decline of 2.6% to 1.1%.
Unisys also retained its forecast for a non-GAAP operating profit margin of 9% to 11%.
The outlook assumes approximately $425 million in ClearPath revenue and a constant-currency revenue decline of 6% to 4% for Technology Solutions & Services.
Chief Financial Officer Deb McCann noted that the company’s liquidity remained strong and that its estimated global pension deficit had improved, advancing its goal of eliminating U.S. pension obligations.
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