Revenue of $437.6 million, up 1.3% year over year (YoY), down 4.5% in constant currency(1)
Excluding License and Support (Ex-L&S)(13) revenue of $372.1 million, up 3.1% YoY, down 2.9% in constant currency
Gross profit margin of 25.7%, up 80 bps YoY; Ex-L&S gross profit margin of 19.5%, up 170 bps YoY
Operating profit margin of 3.7%, improved 250 bps YoY; non-GAAP operating profit(6) margin of 4.5%, improved 170 bps YoY
New Business(5) Total Contract Value (TCV)(3) of $158 million, an increase of 45% YoY
Unisys expands AI capabilities with key product releases for the ClearPath® Forward ecosystem
Unisys reaffirms 2026 full-year guidance ranges for both constant currency revenue growth and non-GAAP operating profit margin
BLUE BELL, Pa., May 5, 2026 /PRNewswire/ -- Unisys Corporation (NYSE:UIS) reported financial results for the first quarter of 2026 (1Q26).
"We are off to a good start in 2026, with solid financial performance and double-digit growth in New Business signings in the first quarter," said Michael Thomson, Unisys CEO and President. "Our proven ability to move tangible AI use cases into production, with measurable results, is making Unisys more relevant to clients and alliance partners. We also released a number of ClearPath Forward products and tools that enable enterprise AI both on our platforms and external systems, reinforcing the long-term value proposition of the ClearPath Forward ecosystem."
Unisys Chief Financial Officer Deb McCann said, "We are pleased to reaffirm our full-year financial guidance ranges for both revenue and profitability. Our strong first quarter client signings reinforce our confidence in our revenue outlook. Consistent progress on delivery and operational efficiency initiatives improved our first quarter margins and keeps us on track to meet our free cash flow expectations."
Financial HighlightsPlease refer to the accompanying financial tables for a reconciliation of the GAAP to non-GAAP measures presented, except for financial guidance since such a reconciliation is not practicable without unreasonable effort.
(In millions, except numbers presented as percentages)
1Q26
1Q25
Revenue
$437.6
$432.1
YoY revenue change
1.3 %
YoY revenue change in constant currency
(4.5) %
Ex-L&S revenue
$372.1
$361.0
YoY revenue change
3.1 %
YoY revenue change in constant currency
(2.9) %
License and Support(12) revenue
$65.5
$71.1
YoY revenue change
(7.9) %
YoY revenue change in constant currency
(12.4) %
Gross profit
$112.5
$107.5
Gross profit percent
25.7 %
24.9 %
Ex-L&S gross profit
$72.7
$64.2
Ex-L&S gross profit percent
19.5 %
17.8 %
Operating profit
$16.2
$5.1
Operating profit percent
3.7 %
1.2 %
Non-GAAP operating profit
$19.8
$11.9
Non-GAAP operating profit percent
4.5 %
2.8 %
Net loss attributable to Unisys Corporation
($35.8)
($29.5)
Non-GAAP net loss attributable to Unisys Corporation(8)
($9.9)
($3.5)
EBITDA(7)
$13.8
$5.1
Adjusted EBITDA(7)
$46.2
$40.2
Adjusted EBITDA as a percentage of revenue
10.6 %
9.3 %
First Quarter 2026 Results
Revenue increased 1.3% YoY, down 4.5% in constant currency. Foreign currency fluctuations contributed a 6 percentage-point positive impact on revenue in the current period compared with the prior-year period, which was partially offset by the timing of software license renewals, and a 2.9% decline in Ex-L&S revenue in constant currency.
Gross profit margin improved 80 bps YoY. Ex-L&S gross profit margin increased 170 bps YoY, primarily driven by delivery improvement and labor cost savings initiatives in the Cloud, Applications & Infrastructure Solutions (CA&I) segment.
During the first quarter of 2026, a transaction within the company's United Kingdom business process outsourcing consolidated joint venture generated approximately $3 million of gross margin benefit, resulting in a positive impact on gross profit margin and Ex-L&S gross profit margin of 50 basis points and 70 basis points, respectively. This transaction is expected to generate approximately $12 million of gross margin benefit for 2026.
Financial Highlights by Segment
(In millions, except numbers presented as percentages)
1Q26
1Q25
Digital Workplace Solutions (DWS):
Revenue
$118.2
$118.6
YoY revenue change
(0.3) %
YoY revenue change in constant currency
(6.5) %
Gross profit
$15.9
$16.9
Gross profit percent
13.5 %
14.2 %
Cloud, Applications & Infrastructure Solutions (CA&I):
Revenue
$182.0
$176.6
YoY revenue change
3.1 %
YoY revenue change in constant currency
(2.4) %
Gross profit
$39.6
$34.4
Gross profit percent
21.8 %
19.5 %
Enterprise Computing Solutions (ECS):
Revenue
$115.2
$118.7
YoY revenue change
(2.9) %
YoY revenue change in constant currency
(8.4) %
Gross profit
$54.0
$56.6
Gross profit percent
46.9 %
47.7 %
First Quarter 2026 Segment Results
DWS revenue declined 0.3% YoY, down 6.5% in constant currency. Fluctuations in foreign currency contributed a 6 percentage-point positive impact on DWS revenue compared to the prior-year period. DWS gross profit margin was 13.5%, a decrease of 70 bps YoY. The decreases in revenue and gross profit margin were primarily driven by lower volume due to client attrition.
CA&I revenue increased 3.1% YoY, down 2.4% in constant currency. Fluctuations in foreign currency contributed a 5 percentage-point positive impact on CA&I revenue compared to the prior-year period. This positive impact was partially offset by reduced volume due to client attrition. CA&I gross profit margin was 21.8%, an increase of 230 bps YoY, primarily driven by delivery improvement and labor cost savings initiatives.
ECS revenue declined 2.9% YoY, down 8.4% in constant currency. Foreign currency fluctuations contributed a 5 percentage-point positive impact on ECS revenue in the current period compared with the prior-year period. ECS gross profit margin was 46.9%, a decrease of 80 bps YoY. The decreases in revenue and gross profit margin were primarily driven by the timing of software license renewals.
Balance Sheet and Cash Flows
(In millions)
March 31,
2026
December 31,
2025
Cash and cash equivalents
$ 380.2
$ 413.9
Cash and cash equivalents decreased $33.7 million primarily due to the timing of cash interest payment associated with the 10.625% Senior Secured Notes due 2031 (the 2031 Notes).
(In millions)
1Q26
1Q25
Cash (used for) provided by operations
($4.4)
$33.3
Free cash flow(9)
($25.5)
$13.2
Pre-pension and postretirement free cash flow(10)
$2.9
$22.6
Adjusted free cash flow(11)
$13.9
$28.3
The decrease in both free cash flow and pre-pension and postretirement free cash flow was primarily due to the timing of cash interest payment related to the 2031 Notes.
Other Metrics
(In millions, except numbers presented as percentages)
1Q26
1Q25
YoY
Change
QoQ
Change*
Total Contract Value (TCV)(3)
New Business(5)
$ 158
$ 109
45 %
16 %
Ex-L&S Renewals
74
76
(3) %
(91) %
L&S Renewals
42
21
100 %
(82) %
Total company
$ 274
$ 206
33 %
(76) %
*
QoQ - quarter over quarter
Backlog(2) was $2.96 billion for the first quarter of 2026 compared to $2.89 billion for the first quarter of 2025.
2026 Financial GuidanceThe company reaffirms full-year 2026 revenue growth and profitability guidance:
Guidance
Revenue growth in constant currency
(6.5)% to (4.5)%
Non-GAAP operating profit margin
9.0% to 11.0%
Constant currency revenue guidance translates to reported revenue growth of (3.5)% to (1.5)%, based on exchange rates as of April 30, 2026, and assumes L&S revenue of approximately $415 million and Ex-L&S constant currency revenue growth of (7.0)% to (4.5)%.
Conference CallUnisys will hold a conference call with the financial community on Wednesday, May 6, at 8 a.m. Eastern Time to discuss the results of the first quarter of 2026.
The live, listen-only webcast, as well as the accompanying presentation materials, can be accessed on the Unisys Investor Website at www.unisys.com/investor. In addition, domestic callers can dial 1-844-695-5518 and international callers can dial 1-412-902-6749 and provide the following conference passcode: Unisys Corporation Call.
A webcast replay will be available on the Unisys Investor Website shortly following the conference call. A replay will also be available by dialing 1-855-669-9658 for domestic callers or 1-412-317-0088 for international callers and entering access code 2479208 from two hours after the end of the call until May 20, 2026.
(1) Constant currency, A significant amount of the company's revenue is derived from international operations. As a result, the company's revenue has been and will continue to be affected by changes in the U.S. dollar against major international currencies. The company refers to revenue growth rates in constant currency or on a constant currency basis so that the business results can be viewed without the impact of fluctuations in foreign currency exchange rates to facilitate comparisons of the company's business performance from one period to another. Constant currency is calculated by retranslating current and prior-period revenue at a consistent exchange rate rather than the actual exchange rates in effect during the respective periods.
(2) Backlog, Represents the estimated amount of future revenue to be recognized under contracted work, which has not yet been delivered or performed. The company believes that actual revenue reflects the most relevant measure necessary to understand the company's results of operations, but backlog can be a useful metric and indicator of the company's estimate of contracted revenue to be realized in the future, subject to certain inherent limitations. The timing of conversion of backlog to revenue may be impacted by, among other factors, the timing of execution, the extension, nullification or early termination of existing contracts with or without penalty, adjustments to estimates in pricing or volumes for previously included contracts, seasonality and foreign currency exchange rates. Investors are cautioned that backlog should not be relied upon as a substitute for, or considered in isolation from, measures in accordance with GAAP.
(3) Total Contract Value (TCV), Represents the initial estimated revenue related to contracts signed in the period without regard for early termination or revenue recognition rules. Changes to contracts and scope are treated as TCV only to the extent of the incremental new value. New Business TCV represents TCV attributable to expansion and new scope for existing clients and new logo contracts. L&S TCV is driven by software license renewals, and as such, changes in timing or terms of renewals can lead to fluctuations from period to period. The company believes that actual revenue reflects the most relevant measure necessary to understand the company's results of operations, but TCV can be a useful leading indicator of the company's ability to generate future revenue over time, subject to certain inherent limitations. Measuring TCV involves the use of estimates and judgments and the extent and timing of conversion of TCV to revenue may be impacted by, among other factors, the types of services and solutions sold, contract duration, the pace of client spending, actual volumes of services delivered as compared to the volumes anticipated at the time of contract signing, and contract modifications, including, without limitation, contract nullification and termination, over the lifetime of a contract. Investors are cautioned that TCV should not be relied upon as a substitute for, or considered in isolation from, measures in accordance with GAAP.
(4) Book-to-bill, Represents total contract value booked divided by revenue in a given period.
(5) New Business, Represents expansion and new scope for existing clients and new logo contracts.
(6) Non-GAAP operating profit, This measure excludes pretax pension and postretirement expense, pretax goodwill impairment charge and pretax charges or gains associated with certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings, and cost-reduction activities and other expenses.
(7) EBITDA & adjusted EBITDA, Earnings before interest, taxes, depreciation and amortization (EBITDA) is calculated by starting with net income (loss) attributable to Unisys Corporation common shareholders and adding or subtracting the following items: net income (loss) attributable to noncontrolling interests, interest expense (net of interest income), provision for (benefit from) income taxes, depreciation and amortization. Adjusted EBITDA further excludes pension and postretirement expense; goodwill impairment charge, foreign exchange (gains) losses, debt extinguishment, certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; cost-reduction activities and other expenses; non-cash share-based expense; and other (income) expense adjustments.
(8) Non-GAAP net income (loss) and non-GAAP diluted earnings (loss) per share, These measures exclude pension and postretirement expense and charges or (credits) in connection with goodwill impairment; foreign exchange (gains) losses, debt extinguishment, certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated ...
