Unisys Corporation (UIS): Business Model Canvas [Dec-2025 Updated]

You're looking at Unisys Corporation right now, trying to figure out if their aggressive strategy of financial de-risking and pivoting to AI-driven services is actually working. Honestly, their 2025 story is all about execution: they are pushing hard on AI efficiency, claiming up to 40% deflection of support tickets, while still relying heavily on their core U.S. Public Sector business, which brings in 35% to 40% of their total revenue. This Business Model Canvas lays out precisely how Unisys Corporation is trying to balance that high-touch service delivery-supported by expected License and Support revenue of approximately $430 million for FY2025-against the structural costs of a massive transformation. Read on below to see the nine building blocks that define their current operational reality and where the next big opportunity or risk lies.

Unisys Corporation (UIS) - Canvas Business Model: Key Partnerships

Unisys Corporation maintains a network of strategic alliances to deliver its technology solutions, which are critical to its go-to-market strategy, including the Land and Expand imperative mentioned in its February 2025 Annual Report filing.

Dell Technologies (Titanium Partner)

Unisys Corporation holds the status of a Dell Titanium Partner. This collaboration has spanned over 30 years. The partnership focuses on joint solutions for Digital Workplace Services, including Device Subscription Services and Virtual Desktop Infrastructure, alongside enhanced Zero Trust strengthened cyber recovery offerings. Unisys received three Partner of the Year awards from Dell Technologies at Dell Technologies World 2025.

Google Cloud Alliance

Unisys Corporation joined the Google Cloud Partner Advantage Program as a reseller of Google Cloud and Google Workspace. This relationship supports Unisys in providing a complete array of cloud services, including advisory, migration, application modernization, and managed services.

Strategic Alliances with Major Cloud Providers (AWS, Microsoft Azure)

Unisys Corporation supports hybrid cloud solutions by partnering with major hyperscalers. For context on the environment Unisys operates within, the global cloud market size was projected to be $750 billion in 2025.

• Microsoft Azure held an estimated 26% market share in 2025.
• AWS held an estimated 31% market share in 2025.
• Google Cloud held an estimated 11% market share in 2025.
• The combined share of AWS, Azure, and Google Cloud was 68% in Q1 2025.

Unisys Corporation's total company reported revenue increased 1% year-over-year in Q2 2025.

Technology Partners for AI and Generative AI (GenAI)

Unisys emphasizes its investment in scalable, adaptable AI technologies and strategic partnerships. The company was recognized as a global Leader by Information Services Group (ISG) in its 2025 Provider Lens® report for Generative AI (GenAI) Services.

• Recognition was earned in two key quadrants: Strategy and Consulting and Deployment and Development Services for Mid-Size Providers.
• A Unisys study found 78% of organizations plan to increase investment in GenAI.
• 73% of business executives view agentic AI as critical to staying competitive.
• Only 36% of organizations are confident in their readiness to support large-scale AI workloads.

The company leverages its modular Service Experience Accelerator (SEA) technology, which features a configurable GenAI stack including RAG (Retrieval Augmented Generation) and LLMs (Large Language Models).

Unisys Corporation (UIS) - Canvas Business Model: Key Activities

Developing and deploying AI/GenAI solutions like the Service Experience Accelerator (SEA).

• Unisys (NYSE: UIS) was named a global Leader in Information Services Group (ISG)'s 2025 Provider Lens® report for Generative AI (GenAI) Services.
• The Service Experience Accelerator (SEA) features a modular, composable GenAI stack including retrieval augmented generation (RAG), large language models (LLMs), and semantic controls.
• SEA supports multilingual deployment across text and voice for consistent GenAI agent experiences.

Managing and modernizing legacy Enterprise Computing Solutions (ECS) platforms.

Executing a major financial de-risking strategy, including pension liability transfers.

• Unisys completed agreements to transfer approximately $320 million in U.S. defined benefit pension obligations to F&G Annuities & Life, Inc..
• This transfer is the first phase of a strategy to reduce approximately $600 million of U.S. qualified defined benefit pension plan liabilities through the end of 2026.
• The company expected to record a one-time, non-cash, pre-tax settlement charge of about $228 million in the third quarter of 2025.
• The Q3 2025 net loss of $308.9 million was significantly impacted by a non-cash pension settlement loss of $227.7 million related to this annuity contract purchase.
• The company also made a discretionary contribution of $250 million to its U.S. qualified defined benefit pension plans, funded by $50 million cash on hand and $200 million from senior secured notes issuance.

Delivering large-scale, multi-year Digital Workplace Solutions (DWS) and Cloud projects.

Unisys was named a global Leader in the 2025 Gartner Magic Quadrant for Outsourced Digital Workplace Services (ODWS).

Ex-L&S New Business Total Contract Value (TCV) reached $337 million in Q1 2025, representing an 83% Year-over-Year increase.

Unisys Corporation (UIS) - Canvas Business Model: Key Resources

You're looking at the core assets Unisys Corporation is relying on to drive its business forward in late 2025. These aren't just abstract concepts; they are tangible technologies and financial buffers.

Proprietary intellectual property (IP) like the ClearPath software and Unisys Stealth security represents the bedrock of the Enterprise Computing Solutions (ECS) segment. The ClearPath roadmap, as of late 2024, included planned support for Windows 2025 and .Net 8.0 in 2025 for ePortal, alongside exploring other GenAI features for OS 2200 systems.

The focus on next-generation capabilities is heavily weighted toward artificial intelligence. Unisys Corporation was named a global Leader by Information Services Group (ISG) in its 2025 Provider Lens® report for Generative AI (GenAI) Services. This recognition specifically cited the modular Service Experience Accelerator (SEA) technology stack, which features a configurable GenAI stack with pre-integrated retrieval augmented generation (RAG), large language models (LLMs), and semantic controls.

The company's expertise is concentrated in specific, complex sectors. Unisys Corporation delivers advanced IT solutions to some of the largest commercial and public sector clients globally. Expertise in enterprise computing and business process solutions has a concentrated client base in financial services, travel and transportation, and healthcare. For context on client base diversification, in 2024, no single client accounted for more than 10% of Unisys Corporation's revenue. Furthermore, the public sector focus is validated by being named a Leader in ISG's 2025 Public Sector Services and Solutions Provider Lens® report for Australia and the U.K. on November 20, 2025.

Liquidity remains a key resource for investment and operational stability, especially given recent financial performance. Here's the quick math on the balance sheet as of the end of Q3 2025:

The company also advanced its pension strategy by purchasing an annuity contract to transfer $320 million of projected U.S. defined benefit pension liabilities.

The core technology assets underpinning service delivery include:

• ClearPath MCP and OS 2200 mainframe platforms.
• Unisys Stealth security solutions.
• The modular Service Experience Accelerator (SEA) GenAI stack.
• Cloud-native platforms and AI-driven automation capabilities.

The SEA technology supports:

• Composable GenAI stack with RAG and LLMs.
• Domain-centric modularity with multilingual orchestration.
• Knowledge lifecycle automation for service delivery.

Finance: review the impact of the $321.9 million cash position against the Q4 2025 investment plan by next Tuesday.

Unisys Corporation (UIS) - Canvas Business Model: Value Propositions

You're looking at the core promises Unisys Corporation is making to its clients as of late 2025. These aren't just vague goals; they are tied to specific operational and financial results they are reporting to the street.

AI-driven operational efficiency, deflecting 40% of support tickets to automation.

This is about making the help desk smarter, faster. Unisys is actively pointing to this metric as a driver for margin and cash flow. In their Q3 2025 commentary, they specifically highlighted workforce optimization and AI-driven automation, citing a deflection rate of approximately 40% to automated support. This efficiency helps them maintain profitability even when top-line revenue faces headwinds, like the 7.4% year-over-year revenue decrease seen in Q3 2025.

Secure, unified Digital Workplace transformation (DWS) and Experience-as-a-Service.

The Digital Workplace Solutions segment is a key service pillar, though it saw some softness. For the third quarter of 2025, DWS revenue was reported at $125 million. Still, the market recognizes the strength here; Unisys was named a global Leader in the 2025 Gartner Magic Quadrant for Outsourced Digital Workplace Services. This recognition speaks to their ability to deliver that seamless, centralized user experience across devices.

Modernization of mission-critical legacy systems (ClearPath) via hybrid cloud integration.

For clients with mission-critical workloads, the ClearPath platform remains essential, evolving with Intel system architecture and hybrid cloud extensions. The License and Support (L&S) portion of this business is treated as a strong cash engine. Unisys actually raised its full-year 2025 L&S expectation to $430 million. Looking further out, they forecast an average annual L&S revenue of ~$400 million for the 2026-2028 period, signaling confidence in client retention for these core systems.

Zero Trust security and post-quantum cryptography readiness for public sector clients.

For government and highly regulated entities, security readiness is non-negotiable. Unisys is positioning its strategy around integrating zero-trust architecture and offering leadership in post-quantum cryptography implementation, specifically targeting the U.S. public sector. This focus is paying off in new business; Total Contract Value (TCV) growth in Q3 2025 was significantly driven by agreements with U.S. federal agencies. To be fair, the public sector also contributed to revenue headwinds due to paused projects amid government uncertainty.

Outcome-linked client engagements with strategic consulting maturity.

The firm is pushing its consulting maturity, especially around newer technologies like Generative AI. In fact, ISG recognized Unisys as a global Leader in its 2025 GenAI Services report, specifically citing their Outcome-linked client engagements with strategic consulting maturity. This means they are structuring deals to deliver measurable business results, not just technology deployment. This strategic approach is meant to differentiate their service delivery from pure transactional work.

Here's a quick look at some of the hard numbers underpinning these value propositions as of the third quarter of 2025:

The focus on operational efficiency, like that ~40% deflection rate, is critical because it directly supports the non-GAAP operating profit margin guidance of 8% to 9% for the full year, even with top-line pressure. Finance: draft 13-week cash view by Friday.

Unisys Corporation (UIS) - Canvas Business Model: Customer Relationships

You're looking at how Unisys Corporation builds and maintains its client base, which is heavily weighted toward long-term, sticky revenue streams. The focus here is on deep partnership rather than transactional sales, which you see reflected in their contract metrics.

Dedicated account teams and long-term, multi-year service contracts (typically 3-5 years).

While the exact typical contract length isn't published, the financial results from 2025 show strong commitment from existing clients. Total company Backlog stood at $2.83 billion at the end of Q3 2025, up from $2.80 billion in Q3 2024, indicating a stable base of committed future work. This backlog growth is supported by Total Contract Value (TCV) momentum; for instance, TCV reached $434 million in Q1 2025, marking a 17% year-over-year increase. The growth in Ex-L&S New Business TCV was even more pronounced, hitting $337 million in Q1 2025, which is an 83% year-over-year jump, suggesting successful acquisition of new, likely long-term, service work.

The relationship structure is clearly segmented to manage different client needs:

• The Enterprise Computing Solutions (ECS) segment, which includes high-margin software licenses and managed service contracts, remains the most profitable.
• The Cloud, Applications & Infrastructure (CA&I) segment represented roughly 41% of total sales in Q1 2025.
• Unisys derives approximately 35% to 40% of its revenue from the public sector, heavily reliant on multi-year federal contracts.

Here's a quick look at the contract and segment performance metrics from the first three quarters of 2025:

High-touch strategic consulting for digital transformation and AI adoption.

Unisys Corporation positions itself as a strategic partner for enterprise evolution, evidenced by external validation in key growth areas. The company was named a global Leader in Information Services Group (ISG)'s 2025 Provider Lens® report for Generative AI (GenAI) Services. Specifically, Unisys earned recognition in the Strategy and Consulting for Mid-Size Providers quadrant. This recognition highlights their focus on Outcome-linked client engagements with strategic consulting maturity, meaning they collaborate closely to deliver measurable business results. The company is actively helping clients prepare infrastructure for AI adoption, though research shows a gap: only 36% of organizations are confident in their data architecture for wholesome AI utilization.

Managed services model for continuous, proactive IT support and optimization.

The managed services approach is embedded within the structure of their core segments, particularly ECS, which relies on managed service contracts for its profitability. This model is designed for continuous operation, contrasting with more project-based work. For example, Digital Workplace Solutions (DWS) revenue, which includes support services, was $118.6 million in Q1 2025, making up about 27% of total revenue. The CEO noted strong client retention and consumption within the License & Support (L&S) platforms, which act as a cash generation engine, supporting the ongoing service delivery framework.

Client-centric advisory models for cybersecurity and cloud strategy.

Advisory services are critical, especially given the evolving risk landscape. Unisys Corporation was recognized as a Leader in Everest Group's 2025 Cloud Services PEAK Matrix® Assessment for Mid-market Enterprises, underscoring its capabilities in cloud strategy and modernization. The firm emphasizes cybersecurity and regulatory compliance, leveraging deep domain knowledge in regulated sectors like government, healthcare, and financial services. This advisory focus is timely; research indicates that 85% of organizations admit their cybersecurity strategies are too reactive. Conversely, 76% of organizations plan to increase cloud investment, creating a clear demand for proactive cloud strategy guidance.

Finance: draft 13-week cash view by Friday.

Unisys Corporation (UIS) - Canvas Business Model: Channels

You're looking at how Unisys Corporation gets its solutions and services into the hands of its clients. It's a mix of direct selling, working through others, and securing government business through established means.

Direct enterprise sales force for large, complex, multi-segment deals.

Unisys Corporation maintains a direct sales team focused on landing and expanding large, intricate technology transformation deals across various industry verticals. This channel is key for securing the multi-year agreements that form the foundation of their backlog.

Global partner channel for reselling and co-delivering solutions (e.g., Dell, Google Cloud).

The global partner channel is an additive layer, where strategic alliances help extend reach and solution capability. For instance, Unisys Corporation received three prestigious awards at Dell Tech World, including being named Dell's 2025 Global Alliances Growth Partner of the Year, signaling growth influence with that alliance partner.

The channel strategy supports the overall financial objectives for 2025, which included a constant currency revenue growth projection of 0.5% to 2.5%.

Here's a look at some key metrics related to contract momentum and segment revenue that touch upon channel effectiveness:

Public sector contract vehicles (e.g., U.S. federal agencies, state government contracts).

Securing business through public sector contract vehicles remains a significant component of Unisys Corporation's pipeline and revenue base. In Q1 2025, Total Contract Value (TCV) reached $434 million, a 17% YoY increase, with a large portion stemming from multi-year agreements with U.S. federal agencies and state governments. However, in Q2 2025, Cloud, Applications & Infrastructure (CA&I) revenue declined 4.5% YoY, which was primarily driven by lower volume with clients in the public sector.

The company's exposure to this sector is substantial; Unisys Corporation derives approximately 35% to 40% of its revenue from the public sector.

Investor Relations outreach via conferences to maintain transparency and confidence.

Unisys Corporation actively engages the financial community to maintain confidence and transparency regarding its strategy and performance. For example, Executive Vice President and Chief Financial Officer Deb McCann presented at the BofA Securities Leveraged Finance Conference on December 2, 2025. Further outreach included the Sidoti Year-End Virtual Investor Conference on December 10 and 11, 2025. The company also held its Q3 2025 financial results conference call on November 6, 2025, at 8:00 a.m. EST.

The company raised its full-year non-GAAP operating profit margin guidance to a range of 8% to 9% as of the Q2 2025 call.

• Q3 2025 Earnings Call Dial-in (Domestic): 1-844-695-5518
• Q3 2025 Earnings Call Passcode: Unisys Corporation Call
• Q3 2025 Replay Access Code: 9285534

Unisys Corporation (UIS) - Canvas Business Model: Customer Segments

You're looking at the core client base for Unisys Corporation as of late 2025, which is heavily weighted toward large, complex organizations, both public and private sector. The company's strategy, as outlined in its 2025 filings, centers on landing initial engagements and then expanding those relationships across its solution portfolio.

The U.S. Federal and State Public Sector agencies represent a foundational pillar of the business. Unisys explicitly states that this group contributes approximately 35% to 40% of its total revenue. This reliance means that contract timing, especially with federal agencies like the Department of Homeland Security and Department of Defense, significantly influences quarterly results, as seen with revenue fluctuations tied to software license renewals in the Enterprise Computing Solutions segment.

For commercial clients, the focus is on large organizations that require the services delivered through the Digital Workplace Solutions (DWS) and Cloud, Applications & Infrastructure (CA&I) segments. In the first quarter of 2025, DWS alone generated revenue of $118.6 million, representing about 27% of the total company revenue for that period. The overall revenue for the trailing twelve months ending in Q1 2025 was $1.92 Billion USD.

The customer base is intentionally diversified across commercial sectors, though certain areas show higher concentration for specific offerings. For instance, Enterprise Computing and business process solutions have a more concentrated client base in travel and transportation, financial services, and healthcare. To be fair, in 2024, no single client accounted for more than 10% of Unisys Corporation's total revenue.

The segment targeting Global Financial Services clients-specifically for core modernization-is a key area for high-value work, often overlapping with the CA&I services. Similarly, Mid-market enterprises with annual revenues between $1 billion and $5 billion are a targeted growth area, as part of the company's stated imperative to expand market share beyond its largest enterprise and government accounts.

Here's a quick look at the financial context surrounding these segments based on early 2025 results and guidance:

You can see the focus on securing long-term, recurring revenue through these client types. The company's go-to-market approach relies on building trust through initial projects to expand the scope of services provided. This is evident in the 17% Year-over-Year increase in Total Contract Value (TCV) reported in Q1 2025, which saw significant contributions from U.S. federal agencies and state government projects.

The types of engagements sought from these segments include:

• Securing multi-year agreements with U.S. federal agencies.
• Driving cloud infrastructure and cybersecurity projects for state governments.
• Landing initial engagements with prospective clients for subsequent expansion.
• Focusing on high-quality delivery to support renewal rates across all client types.

Finance: draft 13-week cash view by Friday.

Unisys Corporation (UIS) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Unisys Corporation's operations as of late 2025. For a global IT services provider, the biggest drains are usually people and the cost to deliver those services. We can see this reflected in the Cost of Revenue figures.

For the nine months ended September 30, 2025, the Cost of Revenue for Services, which encompasses personnel and delivery costs for that segment, totaled \$876.6 million. Overall, the total Cost of Revenue for the company for the same nine-month period was \$1,052.1 million. This high cost base is typical for a firm relying heavily on global delivery teams for consulting and outsourcing contracts.

The debt structure introduces a fixed, significant annual cash outflow. Unisys Corporation utilized approximately \$200 million from the net proceeds of the 10.625% Senior Secured Notes due 2031 to fund a discretionary pension contribution in mid-2025. Based on the principal amount mentioned in your outline, the contractual annual interest charge on \$700 million of these notes at 10.625% would be \$74.375 million.

Streamlining corporate functions and real estate directly impacts Selling, General & Administrative (SG&A) costs. For the first half of 2025, operating expenses saw a 10% decline year-to-date, driven by the ongoing execution of SG&A reduction initiatives. Separately, during the nine months ended September 30, 2025, the company recognized net cost-reduction charges and other costs totaling \$3.0 million.

Costs related to fulfilling long-term outsourcing agreements are capitalized and then expensed over the contract life. For the nine months ended September 30, 2025, the Depreciation and amortization of capitalized contract costs amounted to \$11.4 million. This same figure was reported for the third quarter of 2025.

Here's a look at some of the key expense and cost-related figures from the nine months ended September 30, 2025, compared to the prior year:

You should also keep an eye on non-cash charges that affect reported profit but not necessarily cash flow from operations, like goodwill impairment. The goodwill impairment charge for the third quarter of 2025 was \$55.0 million.

The company is actively managing its pension liabilities, which impacts costs, though often through non-operating or non-cash means. For instance, a U.S. pension plan settlement in Q3 2025 resulted in a post-tax loss of \$227.7 million. Also, pension and postretirement expense for the nine months ended September 30, 2025, was \$286.8 million.

The structure of the business means personnel and delivery are the largest variable costs. Finance: draft a sensitivity analysis on Cost of Revenue changes against the 8% to 9% non-GAAP operating profit margin guidance by Monday.

Unisys Corporation (UIS) - Canvas Business Model: Revenue Streams

You're looking at how Unisys Corporation (UIS) pulls in its money as of late 2025, focusing on the hard numbers they are projecting and reporting.

The License and Support (L&S) stream remains a key anchor, which the company views as a powerful cash generation engine. For the full year 2025, the expectation for this high-margin revenue is approximately $430 million. To give you a snapshot of how that stream is performing recently, the L&S revenue for the third quarter of 2025 was $83.0 million.

The rest of the business, what they call Excluding License and Support (Ex-L&S) revenue, is where the recurring managed services and project-based consulting live. In the third quarter of 2025, the Ex-L&S revenue was $377.2 million. This segment includes the multi-year managed services contracts and the project-based work from Cloud, Applications & Infrastructure (CA&I) consulting and migration.

Here's a quick look at the reported revenue components from the third quarter of 2025, which gives context to the streams making up the Ex-L&S portion:

The recurring revenue from multi-year managed services contracts is embedded within the Ex-L&S figure. For instance, within the Enterprise Computing Solutions (ECS) segment, Specialized Services and Next Generation Compute Solutions-which includes managed services-grew 9.2% in the first quarter of 2025.

Project-based revenue from CA&I consulting and migration contributes to the Ex-L&S total as well. Looking at the segment performance from the end of 2024, the CA&I segment revenue was $132.1 million for the fourth quarter of 2024. The company is seeing momentum in newer AI solutions aligning with client priorities within this area.

The Device Subscription Service (DSS) is a component aimed at converting client Capital Expenditures (CapEx) into predictable Operating Expenditures (OpEx). While specific FY2025 DSS revenue isn't explicitly broken out, the strategy is noted, with DSS signings expected to ramp starting in the second half of 2025 to drive growth in the Digital Workplace Solutions segment.

You can see the mix of the business streams driving the overall financial picture:

• Full-Year 2025 L&S Revenue Guidance: approximately $430 million.
• Q3 2025 Ex-L&S Revenue: $377.2 million.
• CA&I Segment Revenue (Q4 2024): $132.1 million.
• ECS Managed Services Growth (Q1 2025): 9.2%.

Finance: draft 13-week cash view by Friday.