Unisys Cuts Pension Deficit by $300M, Guides 9%–11% 2026 Margin
Unisys posted Q4 net income of $19 million (non-GAAP $63 million), $575 million revenue up 5.3% and 18% non-GAAP operating margin. Full-year revenue fell 2.9% to $1.95 billion while non-GAAP net income was $68 million with 9.1% margin; pension deficit cut by $300 million and 9%–11% 2026 margin guided.
1. Q4 and Full-Year Financial Results
Unisys reported Q4 GAAP net income of $19 million and non-GAAP net income of $63 million, driven by $575 million in revenue (up 5.3% year-over-year) and an 18% non-GAAP operating margin. For fiscal 2025, revenue was $1.95 billion (down 2.9%) and non-GAAP net income reached $68 million with a 9.1% operating margin, offset by a $228 million pension annuity charge.
2. Segment Performance
Digital Workplace Solutions generated $126 million in Q4 revenue (down 3.7%), while Cloud, Applications & Infrastructure delivered $191 million (down 4.1%). Enterprise Computing Solutions saw a 14% rise to $237 million, with license and support revenue at $186 million (up 19.8%), offset by a 3.7% decline in specialized services.
3. Bookings and Backlog
Unisys secured $1.7 billion in renewal total contract value for 2025, including over $1 billion in Q4, and ended the year with $3.2 billion backlog (up 11% year-over-year). Total new business TCV was $491 million, down 38%, reflecting elongated sales cycles and a $200 million contract termination adjustment.
4. Pension De-risking, Liquidity and Guidance
The company reduced its global GAAP pension deficit by approximately $300 million to $450 million and made $250 million in discretionary pension contributions. Unisys ended 2025 with $414 million cash, no major debt maturities until 2031, net leverage of 2.8x and guides 9%–11% non-GAAP operating margin for 2026, positioning AI initiatives as growth drivers.