What factors drove the changes in Unisys's revenue and profit?

What guidance did Unisys's management provide for the next earnings period?

What is the market's earnings forecast for Unisys next quarter?

What does Unisys do and what are its main business segments?

What is Unisys's gross profit margin?

What is Unisys's latest dividend and current dividend yield?

What is the revenue and EPS growth rate for Unisys year over year?

Did Unisys beat or miss consensus estimates last quarter?

- **L&S Growth Acceleration**: Full-year L&S guidance raised to $430 million, with $400 million average annual target for 2026-2028. 
- **AI-Driven Margin Expansion**: Ex-L&S gross margin improved 70 bps YoY to 18.6%, with automation reducing delivery costs. 
- **Pension De-risking Progress**: $320 million U.S. pension liabilities removed via annuity purchase, with $600 million target by end-2026. 
- **Free Cash Flow Target**: On track to meet $110 million pre-pension free cash flow for 2025. 
- **Public Sector Challenges**: U.S. government shutdown delays project work, but renewals remain strong with improved margins. 
- **Competitive Pricing Pressure**: Attrition on unprofitable renewals reflects disciplined margin focus. 


**【CEO Summary】**
- **Revenue Growth and L&S Expansion**: Total revenue for Q3 2025 was $460 million, with L&S revenue at $83 million (down 20% YoY). Full-year L&S guidance increased to $430 million, with a $400 million average annual target for 2026-2028. Ex-L&S revenue was $377 million (down 3.9% YoY). 
- **AI-Driven Efficiency**: AI solutions are reducing delivery costs, enabling margin improvements. For example, DWS's service desk automation achieved 40% deflection of human support and a 28% increase in user engagement. 
- **Pension Progress**: Annually purchased $320 million of U.S. pension liabilities, bringing total annuity purchases to $600 million target by end-2026. 
- **Client Renewals**: Total contract value (TCV) for renewals year-to-date is $2 billion (book-to-bill of 1.1x), with Ex-L&S renewals up 78% YoY. 
- **Market Challenges**: Ex-L&S growth constrained by PC refresh delays, public sector project pauses, and competitive pricing pressure. 

**【CFO Financial Commentary】**
- **GAAP Results**: Q3 GAAP net loss was $309 million (including $228 million non-cash pension expense). Non-GAAP operating profit was $25 million (5.4% margin). 
- **Cash Flow**: Pre-pension free cash flow was $51 million (Q3) and $15 million YTD. Full-year pre-pension free cash flow target remains $110 million. 
- **Balance Sheet**: Cash balance of $322 million as of Q3, with no debt maturities until 2031. 
- **Pension Deficit**: U.S. pension deficit reduced to $470 million (from $500 million at year-end 2024), with $360 million of planned contributions through 2029. 
- **Margins**: Ex-L&S gross margin improved 70 bps YoY to 18.6%, driven by lower cost charges and workforce optimization. ECS gross margin declined due to L&S renewal timing. 

**【Q&A Highlights】**
- **AI Impact**: AI is reducing delivery costs (e.g., DWS automation saves 24% in abandonment rates) and driving L&S consumption growth (+$40 million YoY). However, competitive pricing pressure limits top-line growth. 
- **Revenue Timing**: Q3 Ex-L&S shortfall ($390 million vs. $377 million) due to hardware pass-through delays and public sector uncertainty. Q4 expects $570 million revenue with $185-190 million L&S. 
- **Public Sector Dynamics**: U.S. government shutdown delayed project work, but renewals remain strong (e.g., $125 million DWS renewal with improved margins). Non-discretionary public sector work (e.g., justice systems) shows resilience. 
- **Pricing Strategy**: Disciplined approach to renewals, refusing to cut prices below profitability threshold. Attrition rate on unprofitable renewals is acceptable. 
- **2026 Outlook**: Liquidity position strong ($322 million cash, undrawn $125 million ABL). L&S growth and margin expansion will drive free cash flow. Public sector project work expected to remain constrained for 2-3 quarters. 


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