Unisys (UIS) Stock Forecast & Price Target

Unisys Corp has demonstrated a robust growth trajectory, with total contract value (TCV) on new business rising 15% year-over-year in the second half of 2025 compared to the first half of 2024, highlighting strong demand for its innovative solutions. This growth is primarily driven by new clients from various sectors, which signals the efficacy of Unisys's strategies in attracting fresh business. Moreover, the company’s base case assumptions indicate a modest improvement in organic growth in the latter half of 2025, as it continues to secure long-term contracts across its diverse offerings, reinforcing a positive outlook for the stock.

Unisys Corp anticipates a decline in non-GAAP operating margins for FY25, projecting a range between 8% and 9%, indicative of decreasing profitability. Additionally, the company is guiding for constant currency revenue growth of -1% to 1%, with L&S revenue expected to contract by approximately 0.5% year-over-year. Furthermore, its net leverage ratio of 3.5x significantly exceeds the peer median of 0.8x, reflecting not only a historically lower organic growth trajectory but also contributing to a diminished valuation multiple.