Will Device Subscriptions Drive the Next Growth Wave at Unisys?

Unisys Corporation UIS is leaning into Device Subscriptions Service (“DSS”) as a potential growth driver within its Digital Workplace Solutions (“DWS”) segment. The company is delivering solution innovations aligned with business outcomes that clients and prospects are actively seeking, such as cost optimization, data integration and security, improved asset and employee productivity, and artificial intelligence enablement. These focused efforts position Unisys to capitalize on evolving workplace needs and shifting IT consumption trends.

Building upon a solid pipeline of DSS opportunities developed in 2024, Unisys is beginning to see clients and prospects move forward with investments. These agreements are helping the company expand its service reach and strengthen long-term client engagement. In the first quarter of 2025, Unisys signed a contract with a global technology company to support 380,000 devices across 14 countries. Unisys also secured an agreement with a biotech client to provide workplace services for more than 21,000 devices across several regions.

Furthermore, the company added two technology partners, Easy Vista and Freshworks, to improve the DWS Alliance ecosystem and strengthen IT Service Management platform capabilities. Going forward, UIS expects DSS signings to increase in the second half of the year, which may support growth in the segment.

Other Players Targeting Growth in Device Subscription Services

In the fast-evolving device-as-a-service (DaaS) market, Unisys is competing with established tech giants like HP Inc. HPQ and Dell Technologies Inc. DELL, both of which have made significant inroads with their own subscription-based hardware and lifecycle management platforms.

HP’s DaaS model offers bundled solutions that include analytics-driven fleet management and predictive support, targeting large enterprises seeking operational efficiency and improved user experience. The scale, global logistics and integration with HP’s hardware ecosystem give it a strong edge in cost and breadth of service.

Dell’s APEX and ProSupport services also rival Unisys’ DSS with robust endpoint security, automation and hybrid infrastructure capabilities. The company recently deepened its partner ecosystem, much like Unisys did with Freshworks and EasyVista, highlighting the importance of flexibility and integration.

While Unisys lacks the manufacturing heft of these competitors, its service-centric approach and enterprise customization could give a differentiated niche, especially in highly regulated or multinational environments.

UIS’ Price Performance, Valuation & Estimates

Shares of Unisys have gained 22.4% in the past three months compared with the industry’s growth of 5%.

Unisys’ current valuation looks promising for investors. The stock is currently trading at a discount compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 5.23X.

The Zacks Consensus Estimate for UIS’ 2025 and 2026 earnings implies a year-over-year uptick of 28.9% and 120.7%, respectively. The earnings estimates for 2025 have remained unchanged in the past 30 days.

Unisys currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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

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