Unisys Corp. (UIS)
NYSEInformation TechnologyInformation Technology ServicesSnapshot 2026-09-09
$2.44-3.56%
Close 2026-09-09 · 1-day change
NYSEInformation TechnologyInformation Technology ServicesSnapshot 2026-09-09
Warn: Management is running behind on a stated commitment.
Unisys aims to grow ClearPath revenue to about $425 million in 2026. It targets an operating profit margin between 9% and 11%. The company has won new contracts, including a UK government deal and a major EU cybersecurity contract. These wins support growth despite recent revenue challenges.
Revenue is declining, with 2026-Q1 down to $437.6 million from $574.5 million in 2025-Q4. Free cash flow is negative and expected to remain around negative $25 million in 2026. Operating income fell sharply in early 2026, showing weak margin progress.
The price is about 59% below our fair value near $9. Analysts expect flat revenue growth next year. The market prices in a weak outlook, which matches the company's current challenges.
Breaks if: ClearPath revenue falls below $415 million in FY26
Breaks if: Free cash flow falls below negative $30 million in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This is a turnaround investment thesis, as UIS is currently loss-making and struggling to meet its financial targets. The current state reflects a mixed outlook, with management emphasizing growth areas like AI while facing declining revenue in key segments.
The valuation suggests UIS is priced cheaply compared to its peers, but there is a significant expectations gap. The market seems to have factored in the company's recent struggles, as indicated by a low fragility tier and a muted price reaction to recent earnings.
Fundamentals are likely to remain under pressure in the near term, given the company's recent earnings miss and declining revenue in key areas. Management's focus on maintaining profit margins and expanding AI capabilities will be crucial, but current performance shows limited progress.
The thesis hinges on UIS's ability to stabilize its earnings and meet its revenue targets, particularly in the ClearPath segment. Additionally, favorable macroeconomic conditions, such as potential Fed rate cuts and positive performance from sector peers, could provide a supportive backdrop.
The most important moves since the prior daily snapshot.
Signal changed from 'mixed' to 'mild_favorable'.
Mixed, the news cuts both ways. Strong ClearPath momentum supports revenue growth objectives. However, the latest earnings miss and revised free cash flow target indicate potential cash flow issues.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Unisys targets a free cash flow of approximately negative $25 million for the fiscal year 2026.
Breaks if: Operating margin falls below 8% in FY26
Sustain non-GAAP operating profit margin within the 9.0% to 11.0% range for full-year 2026 as a key profitability target.
Stated as a priority in 3 of last 3 quarters. Management reaffirmed the full-year 2026 non-GAAP operating profit margin guidance range of 9.0% to 11.0% in 2026-Q1 and 2026-Q2. Actual non-GAAP operating profit margin declined to 5.3% in 2026-Q2 from 7.6% in 2025-Q2, indicating the company is currently below the target range and showing limited progress toward this margin goal.
“Unisys reaffirms previously raised 2026 full-year constant currency revenue growth guidance and maintains non-GAAP operating profit margin guidance.”
“Unisys reaffirms full-year 2026 revenue growth and profitability guidance: Non-GAAP operating profit margin 9.0% to 11.0%.”
“Non-GAAP operating profit margin 9.0% to 11.0% guidance reaffirmed.”
Over the next 1 to 3 years, UIS will need to demonstrate improved execution and financial performance to regain investor confidence. Not investment advice.