Unisys (USY1) AI Stock Analysis

Company Guidance

Unisys raised full-year 2026 total company revenue guidance to -3% to -1.5% in constant currency from -5% to -3.5%, equivalent to reported revenue decline of -0.4% to +1.1%, with TS&S revenue constant currency decline of 3% to 1%; it reaffirmed full-year ClearPath revenue of approximately $425 million, average annual ClearPath revenue of approximately $400 million in 2027 and 2028, fourth-quarter total company revenue of approximately $570 million including approximately $205 million of ClearPath revenue, non GAAP operating profit margin of 9% to 11% with fourth-quarter non GAAP operating margin in the mid to high teens, and free cash flow of approximately negative $25 million, translating to approximately $75 million of pre pension and post retirement free cash flow, based on approximate payments of $85 million in capital expenditures, $70 million of cash taxes, $70 million of net interest payments, $45 million in aggregate legal environmental and restructuring payments, and approximately $100 million of pension and postretirement contributions; it expects approximately $9 million of global pension contributions in the fourth quarter, resulting in total 26 contributions of approximately $97 million, expects aggregated expected cash contributions in 2027 through 2029 to remain essentially unchanged, expects to complete an additional pension transaction the first half of 27, and expects potential full removal of its U. S. Defined benefit pension plans in the next 3 to 4 years.