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Dec 31, 2025
Unisys Q4 2025 Earnings Report
Unisys reported fourth quarter 2025 financial results, showing revenue growth and significant profitability improvements that exceeded guidance.
Key Takeaways
Unisys delivered a strong fourth quarter with revenue increasing 5.3% year-over-year to $574.5 million, driven by software license renewals. The company significantly improved its operating margins and finished the year with a solid cash balance of $413.9 million and a reduced pension deficit.
Q4 revenue grew 5.3% YoY (2.7% in constant currency) to $574.5 million.
Non-GAAP operating profit margin expanded 640 basis points YoY to 18.0%.
Total Contract Value (TCV) for the quarter increased 53% YoY to $1.15 billion.
The company reduced its defined benefit pension plan funding deficit by $301.7 million during the full year.
Revenue by Segment
Forward Guidance
Unisys provided full-year 2026 guidance reflecting a transition year with expected revenue declines but stable non-GAAP operating margins.
Positive Outlook
- Non-GAAP operating profit margin expected between 9.0% and 11.0%.
- L&S revenue projected to be approximately $415 million.
- Strong liquidity position with no major near-term debt maturities.
- Increasing recognition for AI-enabled solution frameworks.
- Continued focus on removal of pension liabilities.
Challenges Ahead
- Constant currency revenue growth projected to decline (6.5)% to (4.5)%.
- Reported revenue growth expected to be (3.8)% to (1.8)%.
- Ex-L&S constant currency revenue growth projected to decline (7.0)% to (4.5)%.
- Elongated sales cycles with prospective clients impacting new business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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