William Blair Initiates Unisys (UIS) with Outperform Rating Highlighting Compelling Risk-Reward and Rising EBITDA Projections

Unisys Corporation (NYSE:UIS) is one of the cheap penny stocks to invest in. On December 10, William Blair analyst Maggie Nolan initiated coverage of Unisys with an Outperform rating. The firm views the global IT services provider as an attractive risk-reward opportunity. Nolan provided an optimistic financial forecast, estimating that Unisys will generate $253 million in EBITDA for 2025 and grow to $271 million in 2026.

The initiation report highlights a strategic pivot as Unisys reinvents itself as a next-generation IT solutions provider. By shifting toward higher-value solutions and expanding into the midmarket, the company aims to improve revenue quality and margin expansion. Nolan noted that while the transition is ongoing, the company’s legacy in mission-critical infrastructure, combined with new capabilities in AI and advanced cloud services, positions it to capture market share.

In Q3 2025, Unisys reported a substantial net loss of $309 million, which included a $228 million one-time, non-cash pension expense. Quarterly revenue also saw a decline, falling 7.4% year-over-year, attributed to light license and support renewals and a broader market pause in IT project spending. Despite the revenue shortfall, management remained confident in its profitability targets.

Unisys is currently on track to meet or exceed the midpoint of its improved non-GAAP operating profit margin guidance of 8% to 9%. This resilience is fueled by a 15% year-over-year increase in TCV and strong performance in the License and Support/LNS business. LNS revenue expectations for the year have been raised to $430 million, which is $40 million above original projections.

Unisys Corporation (NYSE:UIS), together with its subsidiaries, operates as an IT solutions company in the US, the UK, and internationally. It operates in three segments: Digital Workplace Solutions/DWS, Cloud, Applications & Infrastructure Solutions/CA&I, and Enterprise Computing Solutions/ECS.

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Disclosure: None. This article is originally published at Insider Monkey.