Unisys to Pitch AI-Driven Growth Strategy Amid Financial Headwinds

BLUE BELL, PA – January 06, 2026 – Unisys Corporation is set to take the stage at the influential 28th Annual Needham Growth Conference next week, a moment that investors and market analysts are watching with keen interest. CEO and President Mike Thomson will present to a discerning audience in New York City on January 13, a presentation that comes at a pivotal time for the 150-year-old technology solutions firm as it navigates financial headwinds while aggressively pushing a strategy centered on artificial intelligence and digital transformation.

The announcement of its participation, which includes one-on-one investor meetings and subsequent virtual sessions, positions the conference as a critical platform for Unisys to articulate its value proposition. The company aims to convince Wall Street that its long-term vision can overcome recent performance challenges and deliver sustained shareholder value.

A Tale of Two Financials

Investors heading into the Needham conference will be weighing a complex and somewhat contradictory financial picture. Unisys's most recent earnings report for the third quarter of 2025, released on November 5, painted a challenging scene. The company reported total revenue of $460.2 million, a 7.4% year-over-year decrease. More concerning for its growth narrative, revenue excluding its legacy License and Support (Ex-L&S) business fell 3.9%, a drop attributed to lower volumes in its Digital Workplace Solutions (DWS) and Cloud, Applications & Infrastructure (CA&I) segments.

This performance led Unisys to lower its full-year 2025 revenue guidance, now projecting a decline between 2.6% and 3.6% in constant currency. Further adding to investor caution is the company's Altman Z-Score of -0.13, a metric that places it in a “distress zone” and suggests a non-trivial risk of financial difficulty within the next two years.

However, the story is not entirely negative. Despite the revenue dip, Unisys reported a smaller-than-expected loss per share in Q3 and, crucially, reiterated its full-year non-GAAP operating profit margin guidance of 8% to 9%. This suggests a firm grip on operational efficiency and cost management. A significant strategic move was the offloading of approximately $320 million in U.S. pension liabilities through an annuity purchase, a de-risking action designed to reduce future cash contribution volatility and improve balance sheet stability. With a healthy backlog of $2.83 billion and expectations of over $100 million in free cash flow, the company has foundational elements of stability to build upon.

Betting on Digital Workplace and AI Dominance

While the financials present a mixed bag, Unisys's strategic direction is clear and focused. The company is staking its future on its ability to lead in high-value service areas, particularly Digital Workplace Solutions (DWS), cloud, and AI. This is not just aspirational; Unisys has garnered significant external validation for its capabilities.

The company has been consistently recognized as a leader in the DWS space. It was named a Global Leader in the 2025 Gartner Magic Quadrant for Outsourced Digital Workplace Services and ranked first in multiple categories in Gartner's Critical Capabilities report, including for its global service desk and device management. This leadership status was further cemented by acknowledgments from IDC MarketScape and Avasant, which praised its human-first, AI-driven approach to IT support.

This strength in DWS serves as the bedrock for its broader AI ambitions. CEO Mike Thomson has repeatedly emphasized investments in agentic and generative AI to enhance its solution portfolio. The company's own “Top IT Insights for 2025” report signals its focus on emerging trends like smaller, more efficient AI models and the strategic use of hybrid cloud environments. The pitch to investors will likely center on how these advanced capabilities can not only improve client efficiency but also drive higher-margin revenue streams for Unisys, helping to reverse the recent decline in its Ex-L&S business.

The CEO's Pitch to a Wary Wall Street

For Mike Thomson, the presentation at Needham is an opportunity to directly address investor concerns and reset the narrative. His recent communications during earnings calls have consistently highlighted the stability of the company's core License & Support platforms, framing them as a reliable source of high-margin revenue that funds innovation. He is expected to build on this theme, arguing that while the transition to a services-led model creates some top-line volatility, the underlying strategy is sound.

Analysts and investors will be listening for a clear and convincing roadmap for growth. Key questions loom: How will Unisys translate its recognized leadership in DWS into renewed revenue growth? What tangible returns are emerging from its investments in AI, and when will they significantly impact the bottom line? How does the company plan to compete against larger rivals like Accenture and Oracle, given its market share of less than half a percent?

The current sentiment among analysts reflects this high-stakes environment. The consensus rating hovers around a “Hold,” but price targets from various Wall Street firms suggest a potential upside of over 90% from its current trading levels. This wide gap indicates a high-risk, high-reward scenario, where a compelling performance by leadership could unlock significant value. The high degree of institutional ownership, standing above 80%, suggests that major investors retain faith in the long-term strategy but are awaiting proof of execution.

Ultimately, the Unisys presentation will be scrutinized for signs of confidence and clarity. Investors will want to see more than just a vision; they will demand a data-backed plan that demonstrates how the company's technological prowess will convert into predictable revenue growth and sustained profitability. For Unisys, the Needham Growth Conference is more than a routine update; it is a crucial test of its narrative and its ability to convince Wall Street that its 150-year legacy is paving the way for a profitable, AI-driven future.