Unisys Stock Soars 17.63% on Q1 Earnings, New Business

Unisys Corporation's stock surged 17.63% in pre-market trading on May 1, 2025, driven by a strong first-quarter performance and strategic initiatives.

Unisys reported a significant improvement in operating and free cash flow for the first quarter of 2025. The company generated $33.3 million in cash from operations, a substantial increase from $23.8 million in the same period last year. Free cash flow also saw a notable rise, reaching $13.2 million compared to $3.9 million in the previous year. This financial strength was bolstered by a 83% year-over-year increase in new business signings, driven by new logo contracts, which totaled $337 million in total contract value (TCV).

Despite a decline in total revenue to $432.1 million, excluding license and support (Ex-L&S) revenue, the company's performance showed resilience. The Ex-L&S revenue stood at $361.0 million, reflecting a decrease of 8.5% year-over-year. However, the company's gross profit margin remained stable at 24.9%, with the Ex-L&S gross profit margin at 17.8%. The operating profit margin was 1.2%, while the non-GAAP operating profit margin was 2.8%.

Unisys reiterated its full-year 2025 guidance, projecting constant currency revenue growth of 0.5% to 2.5% and a non-GAAP operating profit margin of 6.5% to 8.5%. The company's strategic focus on improving efficiency, bolstering security, and unlocking data insights continues to drive its financial performance and market position.