Unisys Declines 12% in a Month: Time to Buy, Sell or Hold the Stock?

Unisys Corporation UIS shares have declined 12.1% over the past month compared to a 0.4% decrease in the industry. In the same time frame, the S&P 500 has risen 3.5%.

As of yesterday, the stock closed at $4.27, below its 52-week high of $8.93 but above its 52-week low of $3.32. In the past month, UIS has also lagged industry players like C3.ai AI, SoundHound AI SOUN and Genpact G as shown in the chart below.

Price Performance

The recent decline can be primarily attributed to lower levels of discretionary project work as well as declines in third-party volume. Additionally, while hardware-heavy Digital Workplace Solutions win support revenue growth, they carry lower margins and may slow overall profitability improvements.

Conversely, a decline in cloud applications and infrastructure solutions revenues is also concerning. The first-quarter decline was mainly caused by reduced volumes from existing clients. This was due to the timing of project work and anticipated cutbacks in traditional infrastructure projects, especially among public sector clients.

Earnings Estimates Trend & Growth Rate for UIS

In the past 60 days, the Zacks Consensus Estimate for UIS’ 2025 and 2026 earnings per share (EPS) has been unchanged. The company is likely to report solid earnings, with projections indicating a 28.9% and 120.7% jump in 2025 and 2026, respectively.
 

Conversely, industry players like C3.ai’s earnings in fiscal 2026 are likely to witness year-over-year growth of 9.8%. SoundHound and Genpact’s earnings in 2025 are anticipated to witness growth of 84.6% and 6.1%, respectively.

Factors Likely to Aid UIS

Unisys is benefiting from strong momentum in new business signings and client engagement. The company has been successful in expanding its client base with several new logo wins, especially in areas such as Device Subscription Services, application modernization and cybersecurity. These wins reflect the effectiveness of its go-to-market strategy and the growing appeal of its solutions, which align with clients’ needs for cost efficiency, data security and productivity enhancements. The ramp-up in multi-year contracts also supports future visibility and revenue consistency, reinforcing confidence in the business pipeline.

Operational execution continues to be a bright spot for Unisys. Field service activity is showing encouraging signs of recovery, supported by improving trends in infrastructure-related work and anticipation of a broader PC refresh cycle. 

The company expects clients to accelerate technology upgrades, especially in preparation for AI workloads and software transitions, which will likely boost demand for device support, imaging services and maintenance. These developments are expected to lift high-margin service volumes, helping to drive sequential improvement in the top-line performance.

Innovation remains central to Unisys’ value proposition. The company is advancing its capabilities in generative AI, cybersecurity and quantum-resistant technologies. For instance, new AI-powered frameworks and post-quantum cryptography solutions are gaining traction among clients concerned with future-proofing their data operations.

In addition, Unisys is investing in agentic AI and intelligent workflow automation to enhance service delivery and operational insights. These forward-looking offerings are helping the company stand out in competitive markets while deepening relationships with existing clients.

Unisys also benefits from a healthy financial and strategic foundation. The company has been disciplined in managing its cost structure, leading to lower operating expenses and improved cash generation. Liquidity remains strong, supported by substantial cash reserves and no immediate debt obligations.

At the same time, recognition from industry analysts and strengthened partnerships, such as its elevated status with key technology providers, are enhancing brand credibility and access to new opportunities. The company’s diverse revenue streams and non-discretionary contract base contribute to stability amid broader market uncertainties.

UIS Trades at a Discount

Unisys is currently priced at a discount relative to its industry, with a forward 12-month price-to-sales (P/S) ratio of 0.15, well below the industry average. Conversely, other industry players like C3.ai, SoundHound and Genpact are trading at 7.39X, 26.25X and 1.55X, respectively.

P/S(F12M)

End Notes

UIS appears to be in a transitional phase, marked by both challenges and encouraging signs of progress. While the recent stock underperformance reflects softer project volumes and pressure from low-margin hardware-heavy contracts, the company's solid earnings outlook, strong pipeline of business wins and focus on innovation offer reasons for cautious optimism. Ongoing efforts in areas like AI, cybersecurity and workflow automation show potential to drive long-term growth, and operational execution remains a bright spot.

However, given ongoing revenue pressure from infrastructure cutbacks and a lack of near-term catalysts, it is prudent for existing investors to hold on to the stock while awaiting more consistent top-line momentum. Meanwhile, prospective investors may want to wait for clearer signs of sustainable growth and margin recovery before initiating new positions. UIS currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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