Unisys Shares Gain Momentum from Contract Win and Industry Recognition

Unisys Corporation has started the year on a strong note, buoyed by significant industry accolades and a major new government contract. These developments raise questions about the company's potential to return to sustained growth by 2026. Here is an analysis of the key facts and what investors should monitor.

In a notable commercial victory, Unisys secured an $84 million contract in mid-December to provide deskside support services for the Australian Department of Defence. This agreement, set to commence in March 2026 and run through 2028 with an option to extend, replaces the incumbent provider Fujitsu. Contracts of this nature with government entities are typically recurring and could solidify the company's revenue base in the Asia-Pacific region.

This win follows closely on the heels of prestigious industry validation. Unisys was recently ranked first in three critical categories within Gartner's assessment of Outsourced Digital Workplace Services. The company led the field among 18 global providers in Global Service Desk Support, Global Device Management, and North America ODWS Support. This Gartner report comes after other December acknowledgments, including a positioning in the IDC MarketScape for Europe and an innovation award from Plug and Play.

Should investors sell immediately? Or is it worth buying Unisys?

Financial Positioning and Forward Path

From a balance sheet perspective, Unisys took a decisive step late last September to reduce long-term liabilities. The company transferred approximately $320 million in U.S. pension obligations to F&G, a move funded directly from pension assets. This action mitigates financial uncertainty without impacting corporate liquidity.

Operationally, the central challenge remains translating these contract wins and accolades into accelerated, constant-currency revenue growth. Management has reaffirmed its target for a non-GAAP EBIT margin of 8–9% for 2025. Technically, the stock is consolidating with immediate support observed near the $2.80 level.

Looking ahead, CEO Mike Thomson, who assumed the role in April, is expected to present updated strategic targets during investor events in January 2026. The immediate priorities are the execution of the $84 million Australian defence contract and demonstrating whether its top-tier rankings in analyst reports from IDC and Gartner can catalyze faster sales growth.