Unisys Reports Mixed Q2 2026 Results: Revenue Declines Amid Strong New Business Signings — Unisys Corporation

Event summary

Revenue declined 2.0% YoY to $473.5 million, down 5.2% in constant currency.
TS&S revenue increased 2.0% YoY to $403.8 million, but ClearPath revenue dropped 20.4% YoY to $69.7 million.
New Business TCV surged 57% YoY to $192 million, indicating strong demand for new contracts.
Gross profit margin decreased by 210 basis points YoY to 24.8%, while TS&S gross profit margin improved by 170 basis points to 19.3%.
Operating loss widened to $32.9 million, including a non-cash goodwill impairment charge of $47.2 million related to the DWS unit.

The big picture

Unisys's Q2 2026 results highlight a mixed performance, with strong new business signings contrasting against declining revenue and profitability challenges. The company's strategic focus on AI-First initiatives aims to drive future growth, but it must address the timing of ClearPath license renewals and improve operational efficiency in its DWS segment. The reaffirmation of full-year guidance suggests confidence in long-term trends, though investors will closely monitor execution risks.

What we're watching

Revenue Stability: Whether Unisys can stabilize revenue growth amid declining ClearPath license renewals and the impact of foreign currency fluctuations.
Profitability Trends: The pace at which Unisys can improve its gross profit margin, particularly in the DWS segment, which saw a significant decline.
New Business Momentum: How the 57% YoY increase in New Business TCV will translate into future revenue growth and whether it can offset declines in other areas.