Latest news with #Unisys'
Yahoo
4 days ago
- Business
- Yahoo
Can Unisys Capitalize Early With Looming Quantum Threats?
As the specter of quantum computing edges closer to reality, cybersecurity has entered a new era—one where legacy encryption may soon be obsolete. Unisys Corporation UIS is betting on that future. In its first-quarter 2025 earnings call, the company introduced its first Post-Quantum Cryptography solution—a cryptographic posture assessment designed to help organizations identify vulnerabilities in their encryption frameworks ahead of the quantum strategic move aligns with Unisys' broader 'Clear Path Forward 2050' roadmap, which aims to modernize client infrastructure with future-proof solutions. The company's pivot toward quantum-resilient security, coupled with its growing presence in AI-enabled services, endpoint management, and data protection, could provide a differentiated edge as enterprises reassess their cybersecurity revenue declined 11.4% year over year in the first quarter, Unisys grew new business total contract value (TCV) by 80%, highlighting strong forward momentum. Management reiterated full-year guidance and sees back-half tailwinds, especially in high-margin License & Support and infrastructure field services. Its balance sheet also remains robust, with $393 million in cash and improving free cash quantum race is still in early innings, but Unisys' proactive investments suggest it's trying to be more than a follower. Whether this niche play delivers meaningful upside depends on client adoption rates, the speed of quantum innovation, and execution across its diversified mounting cyber risk and rising demand for AI-ready infrastructure, Unisys may be positioning itself early—investors just have to decide if they believe it's early enough. Rivals in the Quantum Race: How DXC Technology and Leidos Compare As Unisys moves early on quantum-resilient cybersecurity, two key competitors—DXC Technology DXC and Leidos Holdings LDOS—are also accelerating their investments in post-quantum security and AI-driven defense solutions. DXC Technology has emphasized modernizing IT infrastructure and securing hybrid environments for large enterprises, with quantum-readiness emerging as a focal point in its recent federal and financial services contracts. DXC's positioning in digital transformation makes it a natural rival to Unisys in government and enterprise sectors, where data protection is Leidos continues to expand its cybersecurity capabilities through government defense contracts, many of which now include quantum threat mitigation as a requirement. Leidos' focus on advanced threat intelligence and secure data transport challenges Unisys' ambitions, especially in public-sector security deployments. Both DXC Technology and Leidos boast stronger scale and federal exposure than Unisys, but UIS's focused innovation in quantum security could help it carve a niche if it executes ahead of DXC and Leidos. UIS Stock's Price Performance Shares of this Pennsylvania-based technology solutions company have inched up 9.6% in the past three months, outperforming the Zacks Computers - IT Services industry, but underperforming the broader Zacks Computer and Technology sector and the S&P 500 index, as evidenced by the chart below. UIS Share Price Performance Image Source: Zacks Investment Research UIS' Discounted Valuation Trend UIS stock is currently trading at a discount compared with the industry peers, with a forward 12-month price-to-sales (P/S) ratio of 0.16, as evidenced by the chart below. UIS Valuation Image Source: Zacks Investment Research EPS Trend of Unisys Unisys' earnings estimates for 2025 and 2026 have remained unchanged over the past 30 days. However, the estimated figures for 2025 and 2026 imply year-over-year growth of 28.9% and 120.7%, respectively. Image Source: Zacks Investment Research UIS stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Unisys Corporation (UIS) : Free Stock Analysis Report Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report DXC Technology Company. (DXC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
04-07-2025
- Business
- Yahoo
How is Unisys Navigating the Shift Toward AI-Driven IT Services?
As the enterprise IT landscape rapidly evolves, Unisys Corporation UIS is making deliberate strides to reposition itself as a key player in AI-driven IT services. The company's ClearPath Forward 2050 strategy centers on embedding AI, automation and data-driven intelligence across its core offerings, from application modernization to digital workplace is leveraging AI to solve longstanding enterprise pain points such as data fragmentation, inefficient workflows and low employee productivity. Its Service Experience Accelerator, for instance, uses generative AI, analytics and workflow automation to transform traditional service desk operations. This solution is gaining traction with clients and showcases how Unisys is making AI adoption more turnkey and company is also building agentic-AI frameworks to structure unrefined data and improve decision-making. Its intelligence accelerator connects siloed datasets across hybrid environments, enabling secure and real-time insights. These innovations not only enhance Unisys' service delivery but also unlock new revenue opportunities through endpoint management, device subscription services and AI-enabled infrastructure the firm is expanding its AI credentials with industry recognition and strategic partnerships. In first-quarter 2025, Unisys was named a 'disruptor' in Avasant's AI Services Radar and continues to invest in post-quantum cryptography and threat detection solutions, critical components in the AI macroeconomic uncertainty, Unisys remains committed to refining its delivery model and investing in emerging technologies. The transformation is still unfolding, but early signs suggest Unisys is not just adapting to the AI shift, it is actively building a platform to thrive in the current scenario. Unisys strengthens its position in AI-powered IT services. The company finds itself navigating the same space as key players like and competitors such as Palantir Technologies Inc. PLTR and International Business Machines Corporation IBM, each with distinct AI Technologies continues to deepen the enterprise AI footprint through its Foundry and Gotham platforms, offering data integration and decision intelligence tools across government and commercial sectors. Its edge lies in real-time operational AI, which has been especially effective in defense, logistics and healthcare IBM leverages its Watsonx platform to drive generative AI and machine learning adoption in enterprise settings. Its longstanding enterprise relationships and hybrid cloud capabilities give IBM scale and depth, especially in regulated industries like finance and insurance. Shares of Unisys have gained 12% in the past three months compared with the industry's growth of 20.1%. Image Source: Zacks Investment Research Unisys' current valuation looks promising for investors. The stock is currently trading at a discount compared with the industry peers, with a forward 12-month price-to-earnings ratio of 4.73X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for UIS' 2025 and 2026 earnings implies a year-over-year uptick of 28.9% and 120.7%, respectively. Image Source: Zacks Investment Research Unisys currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report International Business Machines Corporation (IBM) : Free Stock Analysis Report Unisys Corporation (UIS) : Free Stock Analysis Report Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
19-06-2025
- Business
- Yahoo
Unisys Banks on License & Support Strength: Will the Momentum Hold?
Unisys Corporation UIS is leaning more heavily on its Licensing and Support (L&S) services, which emerged as a bright spot in the first-quarter 2025 performance. The company expects L&S revenues in 2025 to hit $410 million, up from previous expectations of $390 million. This upward revision is largely driven by higher consumption patterns and longer-term renewals. Clients are increasingly relying on Unisys' Clear Path Forward platforms to support AI adoption, data integration and secure workload execution. As enterprises gear up for Windows 11 migrations and AI-enabled transformations, L&S systems are regaining relevance. Unisys noted that many renewals are not only being executed earlier but are also spanning longer durations, as long as seven years. This points to deepening stickiness, especially among clients doubling down on data reliability and compute efficiency. This licensing momentum is material given ongoing softness in the ex-L&S portfolio, which includes discretionary project work and services. These segments were impacted by delayed client decisions, particularly within the public sector. With approximately 65% of annual L&S revenues projected for the second half, the back-half weighting is expected to act as a stabilizing factor for full-year revenue and cash flow outlook. Management reiterated its target for approximately $100 million in pre-pension free cash flow in 2025, supported in part by the L&S performance. Unisys' shares have gained 2.4% in the past three months compared with the industry's rise of 3.4%. In the same time frame, other industry players like AI, Dynatrace, Inc. DT and Fujitsu Limited FJTSY have gained 5.7%, 13% and 15.8%, respectively. UIS Three-Month Price Performance Image Source: Zacks Investment Research UIS stock is currently trading at a discount. It is currently trading at a forward 12-month price-to-sales (P/S) multiple of 0.15X, well below the industry average of 19.26X, indicating an attractive investment opportunity. Then again, other industry players, such as Dynatrace and Fujitsu Limited have P/S ratios of 6.66X, 8.32X and 1.75X, respectively. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Unisys' 2025 earnings per share has been revised upward, increasing from 25 cents to 58 cents over the past 60 days. This upward trend indicates strong analyst confidence in the stock's near-term prospects. Image Source: Zacks Investment Research The company is likely to report solid earnings, with projections indicating a 28.9% rise in 2025. Conversely, industry players like Dynatrace, and Fujitsu Limited are likely to witness growth of 9.8%, 13.7% and 42.3%, respectively, year over year in 2025 earnings. UIS currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Unisys Corporation (UIS) : Free Stock Analysis Report Fujitsu Ltd. (FJTSY) : Free Stock Analysis Report Inc. (AI) : Free Stock Analysis Report Dynatrace, Inc. (DT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
