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.
Revenue Mix and Segment Performance
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.
Signings, AI Services and Data Center Opportunities
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 device telemetry, persona mapping and predictive analytics.
The company also cited several new business wins, including expanded DSS and Azure cloud-governance work for a U.K.-based construction company, a multi-year infrastructure-services contract with a community college system, and a data center engagement with a large original equipment manufacturer. Under the latter engagement, Unisys will provide dedicated resident technicians for an AI data center build-out and maintenance work.
Thomson said Unisys is investing in technicians and training for AI data center services, including work involving servers, liquid cooling and networking equipment. He said the company believes its global field-services footprint could make it an attractive partner for system integrators managing data center build-outs across multiple countries.
In its ClearPath business, the company released a core operating-system upgrade during the quarter intended to improve integration of ClearPath data with third-party AI applications. It also introduced an AI developer toolkit and updated security capabilities, including post-quantum cryptography features. Separately, Unisys moved a quantum fraud-detection solution into production at U.K.-based payments platform Paysafe.
Margins, Earnings and Cash Flow
Second-quarter gross profit was $117 million, representing a 24.8% gross margin, compared with 26.9% a year earlier. The lower consolidated margin primarily reflected ClearPath license renewal timing. TS&S gross margin increased 170 basis points year over year to 19.3%.
Digital Workplace Solutions gross margin declined to 10.8% from 16.9%, reflecting hardware mix, lower volumes and transition costs for a complex client deployment involving Agentic Service Desk across thousands of restaurant locations. Cloud, Applications & Infrastructure gross margin increased 420 basis points to 25%, benefiting from delivery efficiencies and labor-cost savings. Enterprise Computing Solutions gross margin declined to 44.8% from 53.5%, again due largely to ClearPath renewal timing.
Unisys recorded a GAAP operating loss of $33 million, including a $47.2 million non-cash goodwill impairment charge related to the remaining goodwill balance assigned to the Digital Workplace Solutions segment. McCann said the impairment reflected a slower pace of profitability improvement amid competitive pressures, pricing dynamics and near-term delivery investments.
Net loss was $95 million, or $1.31 per diluted share. On an adjusted basis, the company reported a net loss of $6 million, or $0.08 per share. Adjusted EBITDA was $54 million, or an 11.3% margin.
Cash from operations was negative $26 million, while capital expenditures totaled $23 million. Free cash flow was negative $49 million, compared with negative $337 million in the prior-year quarter, which included a $250 million discretionary pension contribution. Unisys ended June with $324 million in cash and an undrawn $125 million asset-based lending facility.
Guidance and Pension Strategy
The company reaffirmed its full-year revenue outlook, which calls for a constant-currency revenue decline of 5% to 3.5%. At June 30 foreign-exchange rates, that equates to a reported revenue decline of 2.6% to 1.1%. The guidance assumes TS&S revenue declines 6% to 4% in constant currency and ClearPath revenue reaches $425 million.
Unisys also reaffirmed its forecast for non-GAAP operating profit margin of 9% to 11% and free cash flow of approximately negative $25 million for 2026. For the third quarter, the company expects about $450 million in reported revenue, including roughly $80 million of ClearPath revenue, and a non-GAAP operating margin of approximately 4%.
McCann said the company expects ClearPath revenue to exceed $200 million in the fourth quarter and said management has a “high degree of confidence” that key large deals will close by year-end. The company also expects about $200 million of third-quarter non-operating items affecting GAAP net income, primarily related to a potential pension annuity purchase that could remove about $200 million in liabilities from its U.S. qualified defined-benefit plans.
Unisys estimated its global pension deficit improved by about $30 million from year-end to approximately $420 million as of June 30. The company said it remains focused on using pension contributions and operational execution to reduce leverage and target the removal of its U.S. pension obligations by 2030.
About Unisys (NYSE:UIS)
Unisys Corporation (NYSE: UIS) is a global information technology company that delivers a broad portfolio of digital workplace, cloud and infrastructure, application and security services. Formed in 1986 through the merger of Burroughs Corporation and Sperry Corporation, Unisys combines decades of experience in IT modernization with a focus on secure, data-driven transformations for government and enterprise organizations.
The company operates two core business segments: Services and Technology.
