Unisys 2025 Q2 Earnings Misses Targets as Net Income Widens by 60%

Unisys Corporation (NYSE: UIS) unveiled its Q2 2025 earnings on July 31, 2025, revealing a 1.1% rise in total revenue to $483.30 million, surpassing expectations of $443 million. However, the company missed on earnings, reporting a deeper loss of $0.28 per share. While Unisys raised its non-GAAP operating profit margin guidance to 8-9% for the year, it adjusted its revenue outlook to be flat year-over-year, reflecting ongoing market uncertainties. This mixed performance underscores the challenges and opportunities facing Unisys as it navigates its strategic initiatives.

Revenue

Unisys's total revenue reached $483.30 million in Q2 2025, a 1.1% increase from the previous year. The Services segment generated $412.20 million, while the Technology segment contributed $71.10 million, bringing the total to $483.30 million. This growth underscores a steady performance across its core business areas.

Earnings/Net Income

The company's net loss expanded to $20 million in Q2 2025, up from a $12.50 million loss in Q2 2024. Unisys's earnings per share (EPS) deteriorated to a loss of $0.28, compared to a loss of $0.17 in the same period last year, indicating a challenging quarter for profitability.

Post-Earnings Price Action Review

Over the past three years, a strategy of buying Unisys shares after a quarter-over-quarter revenue drop on the earnings release date and holding for 30 days has delivered remarkable returns. This approach yielded a total return of 132.4%, substantially outperforming a benchmark return of 60.52%, resulting in an excess return of 71.88%. With a compounded annual growth rate of 21.46% and no maximum drawdown, the strategy demonstrated impressive performance in both returns and risk management. This consistent success suggests that despite short-term price fluctuations, long-term investments in Unisys, following specific trading strategies, may offer significant benefits.

CEO Commentary

Unisys Corporation CEO and President Michael Thomson expressed satisfaction with the company's sequential growth and improved profitability in the second quarter, highlighting strong consumption in License and Support solutions. He noted that investments in agentic and generative artificial intelligence are beginning to yield positive results, advancing growth and efficiency priorities, as evidenced by enhanced profitability and cash generation. Thomson's remarks reflect an optimistic outlook for the company's ability to leverage innovative solutions for future success.

Guidance

Unisys has tempered its mid-point of full-year constant currency revenue guidance to flat year-over-year while raising its full-year non-GAAP operating profit margin guidance to a range of 8.0% to 9.0%. The company aims to maintain this adjusted outlook as it continues to navigate market conditions and focus on strategic growth initiatives.

Additional News

In recent weeks, Unisys has undertaken significant strategic moves, including the completion of a $700 million private placement of Senior Secured Notes. The proceeds are intended for refinancing existing notes and funding a portion of the U.S. pension plan. This financial maneuver aims to optimize Unisys's balance sheet and enhance liquidity. Additionally, Unisys has been recognized in Newsweek's Global Top 100 Most Loved Workplaces® for 2025, showcasing its commitment to fostering a positive workplace culture. Furthermore, Unisys announced the winners of its 16th annual Unisys Innovation Program, highlighting its engagement with engineering students to drive technological innovation.