Unisys Q2 Earnings Call Highlights

Q2 revenue fell 2% year over year to $474 million, primarily because of ClearPath software-license renewal timing, though results exceeded the company’s outlook by about $20 million. Adjusted EBITDA was $54 million, while Unisys reported a $95 million GAAP net loss including a $47.2 million goodwill impairment. Second-quarter new-business TCV rose 57% year over year to $192 million, supported by demand for AI services, project work, device subscriptions and data-center infrastructure. Unisys ended the quarter with $2.8 billion in backlog and a 1.2x trailing book-to-bill ratio. Unisys reaffirmed its 2026 outlook for a 3.5%–5% constant-currency revenue decline, a 9%–11% non-GAAP operating margin and approximately negative $25 million in free cash flow. Management expects ClearPath revenue to exceed $200 million in Q4 and is considering a pension annuity purchase that could reduce U.S. pension liabilities by about $200 million.

Unisys NYSE: UIS reported second-quarter 2026 revenue of $474 million, down 2% year over year on a reported basis and 5.2% in constant currency, as the timing of ClearPath software license renewals weighed on results. The company said revenue exceeded its prior outlook by about $20 million, driven by stronger-than-expected performance in Technology Solutions & Services. CEO and President Mike Thomson said the company’s new-business momentum remained a bright spot, with new-business total contract value, or TCV, rising 57% from a year earlier and 22% sequentially. He said demand for project work, AI-related services, field services and device subscription offerings supported results.

Technology Solutions & Services, or TS&S, which includes the company’s operations outside of ClearPath, generated $404 million in revenue, up 2% from the prior-year period on a reported basis. In constant currency, TS&S revenue declined 1.3%. Digital Workplace Solutions revenue totaled $142 million, declining 1.1% in constant currency. Chief Financial Officer Deb McCann said revenue from recent business wins and high-end storage field services partially offset expected attrition and lower PC field-services volumes. The segment also benefited from hardware associated with Device Subscription Service, or DSS, engagements. Cloud, Applications & Infrastructure Solutions revenue was $184 million, down 3.2% in constant currency. McCann said project completions and prior-year attrition were headwinds, though delayed client ramp-downs helped performance. The company reported growth in higher-value security and application services. Enterprise Computing Solutions revenue fell 13.2% in constant currency to $126 million. ClearPath revenue was $70 million, down 22.9% year over year, reflecting license renewal timing. McCann said the ClearPath decline fully accounted for the overall revenue decline in the enterprise computing segment, while specialized services and next-generation computing solutions grew 3%, led by managed services and business process solutions.

Total second-quarter TCV was $422 million, including $192 million of new-business TCV. For the first half, Unisys signed $696 million in total TCV and $350 million in new-business TCV, with new-business TCV up 52% from the first half of 2025. The company exited the quarter with $2.8 billion in backlog and a trailing 12-month book-to-bill ratio of 1.2 times. Thomson said the company is seeing increasing demand for its DSS offering as clients seek to manage higher device costs tied to memory shortages. He said DSS helps clients shift from conventional capital purchases to lifecycle-based models using...