Unisys' Q2 revenue beats expectations

Overview

• Unisys Q2 revenue of $483.3 mln beats analyst expectations, per LSEG data

• Adjusted EPS for Q2 beats estimates, reflecting improved operational efficiency

• Co made a $250 mln discretionary contribution to U.S. pension plans

Outlook

• Unisys raises full-year non-GAAP operating profit margin to 8.0%-9.0%

• Company expects constant currency revenue growth of -1.0% to 1.0%

• Unisys anticipates L&S revenue of approximately $430 mln for 2025

Result Drivers

• SEQUENTIAL IMPROVEMENT - Unisys reports 11.8% QoQ revenue growth, driven by strong performance in License and Support solutions

• COST REDUCTION - Operating profit margin improved by 140 bps YoY due to cost reduction actions and reduced professional services expenses

• PENSION STRATEGY - Co significantly reduced future cash contribution volatility in U.S. pension plans with a $250 mln discretionary contribution

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the it services & consulting peer group is "buy."

• Wall Street's median 12-month price target for Unisys Corp is $8.00, about 48.1% above its July 29 closing price of $4.15

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nPn5bTg6Va