Unisys (UIS) Stock Forecast & Price Target

Unisys Corp has reported a 15% year-over-year increase in Total Contract Value (TCV) on new business for the second half of 2025 compared to the first half of 2024, primarily driven by the adoption of innovative solutions by new clients. This growth is indicative of the company's ability to secure long-term contracts and expand its client base across various sectors. Additionally, organic growth is expected to improve modestly in the latter half of 2025, reinforcing a positive outlook for the company's performance.

Unisys Corp is projecting a decline in non-GAAP operating margins to between 8% and 9% for FY25, attributed to diminishing profitability, indicating a continued downward trend in operational efficiency. Additionally, the company anticipates constant currency revenue growth to be in the negative range of (1)% to 1%, along with a forecasted drop in L&S revenue by approximately 0.5% year-over-year, signaling challenges in revenue generation and market demand. Furthermore, Unisys's net leverage ratio of 3.5x, significantly higher than the peer median of 0.8x, coupled with its historically lower organic growth and margins, contributes to a diminished valuation multiple, underlining a negative financial outlook.