Unisys' Device Subscription Service (DSS) Sets Stage for Long-Term Growth

Unisys Corporation's Device Subscription Service (DSS) is gaining traction, driving new contract wins and long-term growth. The managed offering provides clients with a subscription model for devices, including procurement, deployment, and support services. DSS is also being used as an entry point to deepen customer relationships and expand into adjacent service areas, with cross-selling opportunities in high-margin offerings. The company's backlog in the DWS segment is growing at a double-digit pace year over year, with major DSS contracts set to roll out over the next several quarters.

Unisys Corporation (UIS) is experiencing significant growth in its Device Subscription Service (DSS), which is driving new contract wins and long-term revenue visibility. The managed offering provides clients with a subscription model for devices, including procurement, deployment, and support services. This service is also serving as an entry point to deepen customer relationships and expand into adjacent service areas, presenting cross-selling opportunities in high-margin offerings.

In the first quarter of 2025, Unisys signed a contract with a global technology company to support 380,000 devices across 14 countries. Additionally, the company secured an agreement with a biotech client to provide workplace services for more than 21,000 devices across several regions. These contracts are part of a broader strategy to increase DSS signings in the second half of the year, which may support growth in the segment [1].

Unisys's DSS is not only gaining traction but also demonstrating strong operational efficiency. The backlog in the DWS segment is growing at a double-digit pace year over year, with major DSS contracts set to roll out over the next several quarters. This growth is supported by the company's expanding strategic partnerships, including the addition of technology partners Easy Vista and Freshworks to the DWS Alliance ecosystem. These partnerships aim to strengthen IT Service Management platform capabilities and improve client outcomes in areas such as threat detection, data optimization, and employee productivity [1].

The company's forward-looking strategy, centered on software innovation, secure hybrid infrastructure, and client-centric service models, is driving broader client engagement and longer-term revenue visibility. Unisys continues to innovate in artificial intelligence and cybersecurity, launching a Post-Quantum Cryptography assessment service and expanding its AI-driven solutions such as the service experience accelerator. These tools aim to improve client outcomes and reinforce the company's role at the heart of mission-critical IT operations [1].

Unisys's earnings estimates trend and growth rate indicate strong analyst confidence in the stock's near-term prospects. Over the past 60 days, the Zacks Consensus Estimate for UIS' 2025 earnings per share (EPS) has been revised upward, increasing from 25 cents to 58 cents. This upward trend reflects a 28.9% jump in 2025, indicating solid earnings projections. Conversely, industry players like C3.ai and SoundHound AI are anticipated to witness year-over-year growth of 12.2% and 84.6%, respectively [1].

Investors may consider buying Unisys' stock due to its compelling turnaround potential and deep undervaluation relative to peers. The company's focus on high-value areas such as device subscription services, AI-driven solutions, and cybersecurity, supported by major contract wins and expanding strategic partnerships, positions it as an attractive opportunity for value-focused investors. UIS currently sports a Zacks Rank #1 (Strong Buy) [1].

References:
[1] https://www.nasdaq.com/articles/unisys-stock-492x-p-e-should-you-buy-sell-or-retain