Unisys Banks on License & Support Strength: Will the Momentum Hold?
This upward revision is largely driven by higher consumption patterns and longer-term renewals. Clients are increasingly relying on Unisys' Clear Path Forward platforms to support AI adoption, data integration and secure workload execution. As enterprises gear up for Windows 11 migrations and AI-enabled transformations, L&S systems are regaining relevance.
Unisys noted that many renewals are not only being executed earlier but are also spanning longer durations, as long as seven years. This points to deepening stickiness, especially among clients doubling down on data reliability and compute efficiency.
This licensing momentum is material given ongoing softness in the ex-L&S portfolio, which includes discretionary project work and services. These segments were impacted by delayed client decisions, particularly within the public sector. With approximately 65% of annual L&S revenues projected for the second half, the back-half weighting is expected to act as a stabilizing factor for full-year revenue and cash flow outlook. Management reiterated its target for approximately $100 million in pre-pension free cash flow in 2025, supported in part by the L&S performance.
Unisys' shares have gained 2.4% in the past three months compared with the industry's rise of 3.4%. In the same time frame, other industry players like C3.ai AI, Dynatrace, Inc. DT and Fujitsu Limited FJTSY have gained 5.7%, 13% and 15.8%, respectively.
UIS Three-Month Price Performance
Image Source: Zacks Investment Research
UIS stock is currently trading at a discount. It is currently trading at a forward 12-month price-to-sales (P/S) multiple of 0.15X, well below the industry average of 19.26X, indicating an attractive investment opportunity. Then again, other industry players, such as C3.ai, Dynatrace and Fujitsu Limited have P/S ratios of 6.66X, 8.32X and 1.75X, respectively.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Unisys' 2025 earnings per share has been revised upward, increasing from 25 cents to 58 cents over the past 60 days. This upward trend indicates strong analyst confidence in the stock's near-term prospects.
Image Source: Zacks Investment Research
The company is likely to report solid earnings, with projections indicating a 28.9% rise in 2025. Conversely, industry players like C3.ai, Dynatrace, and Fujitsu Limited are likely to witness growth of 9.8%, 13.7% and 42.3%, respectively, year over year in 2025 earnings.
UIS currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Unisys Corporation (UIS) : Free Stock Analysis Report
Fujitsu Ltd. (FJTSY) : Free Stock Analysis Report
C3.ai, Inc. (AI) : Free Stock Analysis Report
Dynatrace, Inc. (DT) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Verge
23 minutes ago
- The Verge
OpenAI will update GPT-5's 'personality' after user backlash.
Posted Aug 13, 2025 at 1:38 AM UTC OpenAI will update GPT-5's 'personality' after user backlash. CEO Sam Altman wrote on X that OpenAI plans to update the model to 'feel warmer than the current personality but not as annoying (to most users) as GPT-4o.' He added, 'One learning for us from the past few days is we really just need to get to a world with more per-user customization of model personality.' Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates. Hayden Field Posts from this author will be added to your daily email digest and your homepage feed. See All by Hayden Field Posts from this topic will be added to your daily email digest and your homepage feed. See All AI Posts from this topic will be added to your daily email digest and your homepage feed. See All News Posts from this topic will be added to your daily email digest and your homepage feed. See All OpenAI
Yahoo
39 minutes ago
- Yahoo
Prediction: Nvidia Stock Will Be Worth This Much by the End of 2025
Key Points Nvidia stock experienced an intense sell-off earlier this year, driven by uncertainty around tariffs and competition in China. Rising infrastructure spending by its largest customers suggests that demand remains strong across the artificial intelligence (AI) landscape. Despite a strong rebound over the last few months, valuation trends suggest that emerging AI opportunities may not be fully reflected in the share price yet. 10 stocks we like better than Nvidia › This year has been an emotional roller coaster for shareholders of Nvidia (NASDAQ: NVDA). Following the news of new tariffs, in combination with intensifying competition in China, the company's shares plummeted by as much as 30% earlier this year, wiping out nearly $1 trillion in market value. Such precipitous declines may have suggested that Nvidia's best days were in the rearview mirror, but the stock's more recent performance says otherwise. As of Aug. 7, it had rebounded by 93% from its 2025 lows and now has a market capitalization of $4.4 trillion, making it the most valuable company in the world. With such strong momentum fueling the stock to new highs, is it too late to invest in Nvidia? Read on to find out. Big tech is spending big bucks on Nvidia's chips Nvidia's largest source of revenue is its computing and networking business. This segment comprises the company's data center services and highly coveted graphics processing units (GPUs). A good way to gauge the health of its business is to look at spending on artificial intelligence (AI). The chart below illustrates capital expenditures over the last three years for cloud hyperscalers Amazon, Microsoft, and Alphabet, along with social media company Meta Platforms. These "Magnificent Seven" companies prove that accelerating AI infrastructure spending is a powerful tailwind for Nvidia's chip empire. Beyond the usual tech titan suspects, rising adoption of cloud infrastructure services from Oracle -- as well as neocloud platforms such as Nebius Group and CoreWeave -- offer another source for GPU demand, especially for Nvidia's latest Blackwell architecture. Neoclouds are gaining interest at the moment as they offer flexible software-hardware stacks in the form of high-performance computing (HPC) services and access to GPU clusters via cloud-based infrastructures. New opportunities are emerging Over the last few years, investors have repeatedly heard pundits chirp about the importance of data centers in powering generative AI development. This point is valid, but I think many investors are missing the broader picture when it comes to the evolution of AI infrastructure spending. A new phase of AI adoption involves sophisticated workloads across robotics, autonomous driving, and quantum computing. Companies such as Alphabet and Tesla are beginning to monetize their autonomous vehicles, while Microsoft, Alphabet, and Amazon are all developing their own custom quantum computing chips. Nvidia has just started to scale up its chips and CUDA software platform across these emerging opportunities. Given the company's existing deep integration with big tech, I'm optimistic that its product suite will still be crucial in future, more-advanced AI development. What will Nvidia stock be worth by the end of 2025? The chart below illustrates the company's forward price-to-earnings (P/E) multiple throughout the AI revolution. Given the trends cited above, the forward P/E range between 24 and 30 could be seen as a support zone or valuation floor for Nvidia. Each time its forward P/E dipped into this range, the stock has rebounded strongly. To me, this suggests that investors still see robust long-term growth for the company despite occasional fleeting periods of souring sentiment. I think these valuation trends subtly imply that the market could be underestimating the full breadth of Nvidia's ubiquitous platform. Despite the company's influence across AI infrastructure, many investors still view it purely through the lens of a semiconductor business. As these new opportunities are realized, I think the stock is well positioned for a prolonged breakout -- similar to the initial wave of AI-driven enthusiasm a couple of years ago. Although its forward P/E is fast-approaching prior highs, I think there is a solid case to be made that the company is positioned for further valuation expansion and could reach or exceed historical levels. My logic is that the monetization potential of future opportunities in robotics, autonomous vehicles, and quantum computing is still taking shape and not yet fully priced into the stock by investors. If Nvidia's current forward P/E expands to levels congruent with prior highs by the end of the year, the stock could blow past the $200 price point and reach closer to $220 -- implying an increase between 10% and 20% over current price levels. For this reason, I think Nvidia stock will be trading significantly higher by the end of the year than where it is today. Do the experts think Nvidia is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Nvidia make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,060% vs. just 182% for the S&P — that is beating the market by 877.59%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 11, 2025 Adam Spatacco has positions in Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, Oracle, and Tesla. The Motley Fool recommends Nebius Group and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Prediction: Nvidia Stock Will Be Worth This Much by the End of 2025 was originally published by The Motley Fool
Bloomberg
an hour ago
- Bloomberg
A New Approach to Sustainable Investing
Bill Davis, Portfolio Manager for the Hennessy Sustainable ETF, breaks down some of his top stock picks, which he says offer a unique hedge to a market riding high on the AI trade. Bill speaks with Carol Massar and David Gura on Bloomberg Businessweek Daily. (Source: Bloomberg)
