Unisys Q1 revenue up 1.3%, Ex-L&S revenue +3.1% with margins and new business surge
Unisys posted 1Q26 revenue of $437.6 million, up 1.3% year-over-year (down 4.5% in constant currency) and Ex-L&S revenue of $372.1 million, up 3.1% year-over-year. Gross margin rose 80 basis points to 25.7%, non-GAAP operating margin widened 170 basis points to 4.5%, new business TCV jumped 45%, and guidance was reaffirmed.
1. First Quarter Revenue Performance
Unisys reported first-quarter 2026 revenue of $437.6 million, a 1.3% increase year-over-year, though down 4.5% in constant currency. Excluding License and Support revenue reached $372.1 million, up 3.1% year-over-year, driven by strength in Cloud, Applications & Infrastructure Solutions.
2. Margin and Profitability Gains
Gross profit margin improved by 80 basis points to 25.7%, while Ex-L&S gross margin rose 170 basis points to 19.5%. Non-GAAP operating profit margin expanded to 4.5%, with a $3 million gross margin boost from a UK JV transaction contributing to an expected $12 million annual benefit.
3. New Business and AI Enhancements
Total contract value of new business signings surged 45% year-over-year to $158 million. Unisys also rolled out key AI-enabled products and tools within its ClearPath Forward ecosystem to accelerate enterprise AI deployment.
4. Full-Year Guidance Reaffirmed
Management reaffirmed its 2026 full-year guidance for constant currency revenue growth and non-GAAP operating profit margin, citing strong first-quarter client signings and ongoing operational efficiency initiatives.