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Can Unisys Capitalize Early With Looming Quantum Threats?

Can Unisys Capitalize Early With Looming Quantum Threats?

Yahoo25-07-2025
As the specter of quantum computing edges closer to reality, cybersecurity has entered a new era—one where legacy encryption may soon be obsolete. Unisys Corporation UIS is betting on that future. In its first-quarter 2025 earnings call, the company introduced its first Post-Quantum Cryptography solution—a cryptographic posture assessment designed to help organizations identify vulnerabilities in their encryption frameworks ahead of the quantum curve.This strategic move aligns with Unisys' broader 'Clear Path Forward 2050' roadmap, which aims to modernize client infrastructure with future-proof solutions. The company's pivot toward quantum-resilient security, coupled with its growing presence in AI-enabled services, endpoint management, and data protection, could provide a differentiated edge as enterprises reassess their cybersecurity strategies.While revenue declined 11.4% year over year in the first quarter, Unisys grew new business total contract value (TCV) by 80%, highlighting strong forward momentum. Management reiterated full-year guidance and sees back-half tailwinds, especially in high-margin License & Support and infrastructure field services. Its balance sheet also remains robust, with $393 million in cash and improving free cash flow.The quantum race is still in early innings, but Unisys' proactive investments suggest it's trying to be more than a follower. Whether this niche play delivers meaningful upside depends on client adoption rates, the speed of quantum innovation, and execution across its diversified portfolio.With mounting cyber risk and rising demand for AI-ready infrastructure, Unisys may be positioning itself early—investors just have to decide if they believe it's early enough.
Rivals in the Quantum Race: How DXC Technology and Leidos Compare
As Unisys moves early on quantum-resilient cybersecurity, two key competitors—DXC Technology DXC and Leidos Holdings LDOS—are also accelerating their investments in post-quantum security and AI-driven defense solutions. DXC Technology has emphasized modernizing IT infrastructure and securing hybrid environments for large enterprises, with quantum-readiness emerging as a focal point in its recent federal and financial services contracts. DXC's positioning in digital transformation makes it a natural rival to Unisys in government and enterprise sectors, where data protection is paramount.Meanwhile, Leidos continues to expand its cybersecurity capabilities through government defense contracts, many of which now include quantum threat mitigation as a requirement. Leidos' focus on advanced threat intelligence and secure data transport challenges Unisys' ambitions, especially in public-sector security deployments. Both DXC Technology and Leidos boast stronger scale and federal exposure than Unisys, but UIS's focused innovation in quantum security could help it carve a niche if it executes ahead of DXC and Leidos.
UIS Stock's Price Performance
Shares of this Pennsylvania-based technology solutions company have inched up 9.6% in the past three months, outperforming the Zacks Computers - IT Services industry, but underperforming the broader Zacks Computer and Technology sector and the S&P 500 index, as evidenced by the chart below.
UIS Share Price Performance
Image Source: Zacks Investment Research
UIS' Discounted Valuation Trend
UIS stock is currently trading at a discount compared with the industry peers, with a forward 12-month price-to-sales (P/S) ratio of 0.16, as evidenced by the chart below.
UIS Valuation
Image Source: Zacks Investment Research
EPS Trend of Unisys
Unisys' earnings estimates for 2025 and 2026 have remained unchanged over the past 30 days. However, the estimated figures for 2025 and 2026 imply year-over-year growth of 28.9% and 120.7%, respectively.
Image Source: Zacks Investment Research
UIS stock currently carries 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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Unisys Corporation (UIS) : Free Stock Analysis Report
Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report
DXC Technology Company. (DXC) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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How a Gen Xer clawed his way back to a $900K income working 5 remote jobs after layoffs demolished his overemployment strategy

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