Unisys reported its fourth‑quarter 2025 results on February 24, 2026, posting non‑GAAP earnings per share of $0.86—an $0.22 to $0.27 beat over the consensus estimate of $0.59 to $0.64 and a 45.8% surprise. Revenue rose 5.3% year‑over‑year to $574.5 million, slightly outpacing the $575.4 million consensus estimate and the $571.08 million estimate from a different source.
The revenue lift was driven primarily by a 12% increase in License and Support Solutions (L&S) renewals, which offset a 3.9% decline in constant‑currency revenue from Digital Workplace Solutions (DWS) and Cloud, Applications & Infrastructure (CA&I). The company’s Enterprise Cloud Services (ECS) segment also contributed modest growth, while the legacy Digital Workplace segment saw a modest decline due to competitive pricing pressures in the public sector.
Operating performance improved markedly, with non‑GAAP operating margin expanding to 18.0% from 16.4% in the prior quarter—a 640‑basis‑point gain. The margin lift reflects disciplined cost management, a favorable mix shift toward higher‑margin L&S contracts, and improved operational leverage as revenue scales. Full‑year 2025 non‑GAAP operating margin guidance of 9.1% was exceeded, indicating stronger profitability than previously expected.
Management reiterated confidence in the company’s strategic pivot toward higher‑margin businesses. The CFO highlighted that the company’s cash balance of $413.9 million and a $301.7 million improvement in the defined‑benefit pension deficit provide a solid liquidity foundation. For 2026, Unisys guided constant‑currency revenue growth of 4.5% to 6.5% and a non‑GAAP operating margin of 9.0% to 11.0%, while forecasting negative free cash flow of $25 million.
During the earnings call, the CEO noted, “In our wins and pipeline, we’re seeing more instances of clients placing increased value on delivery quality and viewing it as a real differentiator.” He added that the company had won back a public‑sector client in Australia for a large DWS scope, “setting a powerful new foundation for our business in the region and providing a global playbook for showcasing delivery differentiation.” The CFO emphasized that the company secured multiyear renewals in both CA&I and DWS with several of its largest U.S. public‑sector clients, underscoring the resilience of its core service contracts.
Investors responded positively to the earnings release, with analysts citing the substantial EPS beat and the significant margin expansion as key drivers of the favorable reception. The strong profitability metrics, coupled with the company’s improved cash position and pension de‑risking progress, reinforced confidence in Unisys’s ability to sustain higher margins while navigating a challenging revenue environment.
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