Unisys Reports $35.8 Million Net Loss and 1.3% Revenue Growth in Q1 2026

Unisys Corporation reported a net loss of $35.8 million, or $0.50 per diluted share, for the first quarter of 2026, compared to a net loss of $29.5 million, or $0.42 per diluted share, in the same period of 2025. The company's revenue increased by 1.3% to $437.6 million from $432.1 million year-over-year. The growth in revenue was positively impacted by foreign currency fluctuations, which contributed approximately 6 percentage points to the increase, although this was partially offset by the timing of software license renewals. The company’s License and Support (L&S) revenue decreased by 7.9% to $65.5 million, primarily due to the timing of renewals, while Excluding License and Support (Ex-L&S) revenue rose by 3.1% to $372.1 million.

In terms of operational performance, Unisys reported an operating income of $16.2 million for the first quarter of 2026, a significant increase from $5.1 million in the prior year. This improvement was attributed to higher gross profit, which rose to $112.5 million, and a gross profit margin of 25.7%, up from 24.9% in the previous year. The company also noted a reduction in selling, general, and administrative expenses, which fell to $91.5 million from $96.8 million, primarily due to lower compensation costs. However, interest expenses increased to $18.5 million from $8.2 million, reflecting a higher long-term debt balance following the issuance of $700 million in senior secured notes.

Unisys's total assets decreased to $1.73 billion as of March 31, 2026, down from $1.85 billion at the end of 2025. The company’s cash and cash equivalents also declined to $380.2 million from $413.9 million, largely due to the timing of cash interest payments. The company reported a backlog of $2.96 billion, an increase from $2.89 billion a year earlier, indicating a stable pipeline of future revenue. The company’s workforce reduction initiatives resulted in net cost-reduction charges of $0.7 million during the quarter, compared to a net credit of $0.3 million in the same period last year.

Looking ahead, Unisys anticipates continued challenges related to market conditions, including the impact of foreign currency fluctuations and the timing of software license renewals. The company expects to make cash contributions of approximately $97 million to its global defined benefit pension plans in 2026, reflecting ongoing commitments to its pension obligations. Management remains focused on improving operational efficiency and aligning its workforce with business needs, while also navigating the complexities of the competitive landscape in the technology sector.