Unisys (UIS) Stock Forecast & Price Target

Unisys Corp has demonstrated robust growth with Total Contract Value (TCV) on new business increasing by 15% year-over-year in the second half of 2025 compared to the first half of 2024, indicating strong market demand for its technology solutions. The company's continued ability to attract new clients and secure long-term contracts across various sectors underpins a positive outlook for organic growth moving forward. The business segments, particularly the high-revenue generating Enterprise Computing Solutions, are well-positioned to capitalize on the increasing adoption of innovative solutions in the digital landscape.

Unisys Corporation anticipates a decline in non-GAAP operating margins for FY25, expected to range between 8% and 9%, primarily driven by reduced profitability. The company is also projecting a slight contraction in revenue growth, with constant currency figures expected between -1% and 1%, indicating stagnation in its core business segments, including a forecasted 0.5% decline in L&S revenue year-over-year. Furthermore, Unisys's net leverage ratio is concerning at 3.5x, significantly higher than the peer median of 0.8x, exacerbated by its historically lower organic growth and margins, leading to a diminished valuation multiple.