Overview

• Unisys Q3 revenue falls 7.4% YoY, missing analyst expectations

• Company reiterates full-year non-GAAP operating profit margin guidance

• Unisys advances pension strategy with $320 mln annuity purchase transaction

Outlook

• Unisys lowers full-year constant currency revenue guidance to (4.0)% to (3.0)%

• Unisys reiterates full-year non-GAAP operating profit margin guidance of 8% to 9%

• Company expects momentum in AI solutions to support Ex-L&S gross margin expansion

Result Drivers

• LICENSE & SUPPORT - Strong client retention and consumption in L&S platforms, key to cash generation, per CEO Michael Thomson

• AI SOLUTIONS MOMENTUM - New AI solutions gaining traction, expected to support Ex-L&S gross margin expansion

• PENSION STRATEGY - Annuity purchase transaction to transfer $320 mln of pension liabilities, part of strategy to reduce $600 mln by 2026

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy"

• Wall Street's median 12-month price target for Unisys Corp is $7.50, about 55.1% above its November 4 closing price of $3.37

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release: ID:nPn9QXv19a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)