BLUE BELL, PA — Unisys Corporation (NYSE: UIS) reaffirmed its full-year financial outlook after first-quarter profitability improved and new business contract signings rose 45%, helping offset continued pressure on revenue from client attrition and software renewal timing.
The technology services company reported first-quarter revenue of $437.6 million, up 1.3% from a year earlier, though revenue declined 4.5% on a constant-currency basis.
Operating profit margin improved to 3.7% from 1.2% a year earlier, while non-GAAP operating margin increased to 4.5%.
New business total contract value reached $158 million during the quarter, up 45% year over year.
Michael Thomson attributed the quarter’s performance in part to growing demand for enterprise artificial intelligence applications and expanded offerings tied to the company’s ClearPath Forward platform.
“Our proven ability to move tangible AI use cases into production, with measurable results, is making Unisys more relevant to clients and alliance partners,” Thomson said in a statement.
The company also announced new ClearPath Forward product releases designed to support enterprise AI workloads across internal and external systems.
Gross profit margin increased 80 basis points year over year to 25.7%, while gross margin excluding license and support revenue improved 170 basis points to 19.5%.
Unisys attributed the improvement primarily to delivery and labor-cost efficiency initiatives within its Cloud, Applications & Infrastructure Solutions segment.
A transaction involving the company’s United Kingdom business-process-outsourcing joint venture generated approximately $3 million in gross-margin benefit during the quarter, according to the company.
Despite the gains, several operating segments continued to face revenue pressure.
Digital Workplace Solutions revenue declined 0.3%, while Enterprise Computing Solutions revenue fell 2.9%, with both segments affected by client attrition and software license renewal timing.
Cloud, Applications & Infrastructure Solutions revenue increased 3.1%, though it declined 2.4% in constant currency.
Cash and cash equivalents declined by $33.7 million during the quarter, primarily due to interest payments tied to the company’s 10.625% senior secured notes due 2031.
Deb McCann indicated the company remains on track to meet its annual profitability and cash flow targets.
“Our strong first quarter client signings reinforce our confidence in our revenue outlook,” McCann said.
Unisys maintained its 2026 guidance for constant-currency revenue decline of 6.5% to 4.5% and non-GAAP operating profit margin of 9% to 11%.
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