Unisys Q2 revenue falls on ClearPath license renewals

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

• TSS MARGIN IMPROVEMENT - TSS 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

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

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(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.)