Unisys Raises 2026 Constant-Currency Revenue Outlook

The Tip Desk · November 4, 2026 · 4 min read

Third-quarter revenue was $471.5 million, up 2.5% year over year, and the company lifted full-year constant-currency growth guidance to a 3.0% to 1.5% decline.

Unisys Corporation (UIS) reported third-quarter 2026 revenue of $471.5 million, up 2.5% from a year earlier and 0.6% in constant currency, reversing a 2.0% year-over-year decline in the second quarter.

The global technology solutions company raised its 2026 full-year constant-currency revenue growth outlook to a 3.0% to 1.5% decline from a prior 5.0% to 3.5% decline, and reaffirmed non-GAAP operating profit margin guidance of 9.0% to 11.0%. Constant-currency guidance translates to reported revenue growth of (0.4)% to 1.1% on year-end third-quarter exchange rates. The company said the revised outlook assumes ClearPath revenue of about $425 million and TS&S constant-currency revenue growth of (3.0)% to (1.0)%.

Chief Financial Officer Deb McCann said revenue came in ahead of expectations, led by TS&S, and that the non-GAAP operating profit margin of 7.2% was above what the company had guided.

Technology Solutions & Services revenue was $387.1 million, up 2.6% year over year and 0.9% in constant currency. ClearPath revenue was $84.4 million, up 1.7% year over year after a 20.4% year-over-year decline in the second quarter.

Gross profit margin was 26.7%, up 120 basis points year over year after a 210 basis-point year-over-year decline in the second quarter. The company said the improvement was primarily driven by a higher mix of software licenses relative to hardware within ClearPath renewals, partially offset by higher cost-reduction charges. TS&S gross profit margin was 16.6%, down 200 basis points year over year, primarily from higher cost-reduction charges.

A first-quarter transaction in the company’s United Kingdom business process outsourcing consolidated joint venture benefited gross profit margin by about 50 basis points and TS&S gross profit margin by about 70 basis points in the third quarter. The company said the transaction is expected to generate about $3 million of gross profit quarterly and $12 million for full-year 2026, with the financial impact fully recognized by year-end.

GAAP operating profit was $23.7 million, or a 5.0% margin, versus a $33.5 million operating loss, or a 7.3% margin, a year earlier. Non-GAAP operating profit was $34.0 million, or 7.2% of revenue, up 180 basis points year over year.

Net loss attributable to Unisys was $201.0 million, or $2.76 a share, including a $151 million after-tax non-cash pension settlement loss from the purchase of a group annuity contract that transferred about $200 million of projected U.S. defined benefit pension liabilities to a third-party insurer, funded with plan assets. Including that transaction, the company said it has reduced about $520 million of U.S. qualified defined benefit pension plan liabilities since July 2025, working toward an approximately $600 million reduction target. The company expects to complete an additional pension settlement in the first half of 2027 to substantially achieve that objective.

Digital Workplace Solutions revenue was $130.2 million, up 3.9% year over year, primarily from higher hardware revenue. DWS gross profit margin was 9.5%, down 670 basis points year over year, primarily due to known client attrition and increased implementation and delivery costs. Cloud, Applications & Infrastructure Solutions revenue was $180.3 million, down 0.1% year over year, with gross profit margin of 20.6%, up 100 basis points, primarily from delivery improvements. Enterprise Computing Solutions revenue was $140.6 million, up 5.6% year over year, primarily from higher specialized project work in business processing solutions. ECS gross profit margin was 55.5%, up 930 basis points year over year, primarily from a higher mix of software licenses relative to hardware within ClearPath renewals.

New Business total contract value was $221 million, up 78% year over year and 15% from the second quarter. Total company TCV was $594 million, up 43% year over year. Backlog was $2.92 billion.

Free cash flow was negative $57.7 million. Cash used for operations was $35.8 million, which the company said was impacted by the timing of cash interest payment on 10.625% Senior Secured Notes due 2031. Cash and cash equivalents were $264.2 million at September 30, 2026.