UIS vs DXC: A Comprehensive Comparison of Two Legacy IT Services Stocks

Unisys (UIS) and DXC Technology (DXC) are legacy IT services players undergoing transformation to stay relevant in the digital modernization era. Unisys shows encouraging momentum in business development with a 50% sequential and 80% YoY growth in total contract value, fueled by new logos and demand for its device subscription services. DXC Technology is gaining momentum with a strong book-to-bill ratio of 1.2 in Q4 2025, driven by operational discipline and leadership changes. Both companies face short-term revenue challenges due to macroeconomic uncertainties and delayed deals. The better buy depends on individual investor preferences, with Unisys offering promising growth potential and DXC Technology showcasing operational discipline and strong demand.

Unisys (UIS) and DXC Technology (DXC) are legacy IT services players undergoing significant transformations to remain relevant in the digital modernization era. Both companies have shown encouraging momentum in their business development efforts, driven by different factors.

Unisys has exhibited strong growth, with a 50% sequential and 80% year-over-year (YoY) increase in total contract value, fueled by new logos and demand for its device subscription services. This growth indicates a robust market response to Unisys' offerings, particularly in the device subscription segment.

DXC Technology, on the other hand, has demonstrated operational discipline and strong demand, as evidenced by a robust book-to-bill ratio of 1.2 in the fourth quarter of 2025. This ratio indicates a healthy balance between the revenue booked and the revenue recognized, showcasing DXC's ability to manage its sales pipeline effectively.

However, both companies face short-term revenue challenges due to macroeconomic uncertainties and delayed deals. These challenges underscore the need for continued vigilance and strategic planning to navigate the current economic climate.

For investors, the choice between Unisys and DXC Technology depends on individual preferences and risk tolerance. Unisys offers promising growth potential, driven by its strong market demand and new service offerings. DXC Technology, meanwhile, showcases operational discipline and a strong demand for its services, making it an attractive option for those seeking stability and proven market traction.

In conclusion, both Unisys and DXC Technology are navigating the digital modernization era with encouraging momentum and strategic initiatives. The better buy depends on individual investor preferences and risk tolerance.

References:
[1] https://www.newstrail.com/insurance-claims-management-solution-market-eyeing-bigger-moves-sap-cognizant-accenture/
[2] https://sg.finance.yahoo.com/news/dxc-ranked-leader-isg-provider-130000699.html