Unisys (UIS) Posts Q3 Loss and Falls Short of Revenue Projections
Quarterly Performance: Unisys reported a quarterly loss of $0.08 per share, outperforming the Zacks Consensus Estimate of a loss of $0.27, marking a 70.37% earnings surprise. However, revenues of $460.2 million fell short of expectations by 5.11%.
Stock Outlook: Despite surpassing EPS estimates consistently over the last four quarters, Unisys shares have declined by 46.8% this year, and the current Zacks Rank of #4 (Sell) suggests expected underperformance in the near future.
Earnings Estimates: The consensus EPS estimate for the upcoming quarter is $0.57 on revenues of $593 million, while the fiscal year estimate stands at $0.45 on $1.99 billion in revenues, indicating a cautious outlook.
Industry Context: The Computers - IT Services industry is currently in the top 30% of Zacks-ranked industries, which historically shows strong performance, but the overall market sentiment for Unisys remains negative due to unfavorable estimate revisions.
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- Significant Revenue Growth: Evolv Technologies reported Q1 revenue of $46.3 million, a 45% year-over-year increase, demonstrating the company's ability to achieve sustainable business growth amid strong market demand, thereby solidifying its position in the hardware subscription sector.
- Upward Guidance Revision: The company raised its 2026 revenue outlook to $175 million to $180 million from the previous $172 million to $178 million, reflecting management's confidence in future performance, which is expected to enhance shareholder value.
- Customer Base Expansion: The autonomous AI-based bag screening solution, Expedite, now has over 75 customers, representing approximately 6% of the total customer base, up from roughly 1% a year ago, indicating a significant increase in market acceptance of the company's innovative products.
- Adjusted Margin Variability: The adjusted gross margin for Q1 was 52%, down from 61% in the same period last year; however, management remains optimistic about maintaining margins in the mid-50s for the remainder of the year, reflecting ongoing efforts in cost control and profitability enhancement.
- Performance Overview: Evolv Technologies reported a non-GAAP loss of $0.02 per share with sales of $46.3 million in Q1, exceeding Wall Street's expectations by $2.6 million, and achieving a year-over-year growth of 44.7%, showcasing the company's competitive strength in the market.
- Guidance Upgrade: The company raised its full-year sales target to between $175 million and $180 million from a previous range of $172 million to $178 million, indicating management's confidence in future performance.
- Recurring Revenue Growth: Evolv closed Q1 with an annual recurring revenue (ARR) of $127.3 million, reflecting a 20% year-over-year increase, which lays a solid foundation for the company's long-term stability and growth.
- Market Reaction: Despite the strong Q1 results, the stock experienced a 13.5% decline, reflecting market sensitivity to short-term fluctuations, suggesting that the sell-off may be an overreaction to the company's outlook.
- Earnings Beat: Evolv Technologies reported first-quarter revenue of $46.3 million, surpassing analysts' expectations of $43.7 million, while the adjusted loss of $0.02 per share was better than the anticipated $0.03 loss, indicating strong performance in revenue growth and profitability improvement.
- Analyst Rating Upgrade: Michael Latimore from Northland raised Evolv's price target from $9.50 to $10, maintaining an 'Outperform' rating, which reflects increased market confidence in the company's growth prospects, particularly with the upcoming Analyst Day potentially serving as a catalyst for further upside.
- Improvement in RPO Growth Rate: The company's Remaining Performance Obligations (RPO) growth rate improved from 13% in Q4 to 18%, showcasing positive progress in customer deployments and revenue sustainability, which further bolsters investor confidence.
- Market Sentiment Shift: Retail sentiment on Stocktwits has shifted from 'bearish' to 'bullish', with message volume increasing from 'normal' to 'high', indicating a growing optimism among investors regarding the company's future performance, despite a more than 12% decline in stock price this year.
- Earnings Announcement Date: Evolv Technologies is set to release its Q1 2023 earnings report on May 12 after market close, with a consensus EPS estimate of -$0.02, indicating ongoing challenges in profitability.
- Revenue Growth Expectations: The anticipated revenue for Q1 is $43.7 million, reflecting a 36.6% year-over-year increase, which highlights the company's positive progress in market demand recovery and product promotion, potentially impacting future performance positively.
- Historical Performance Review: Over the past two years, Evolv has beaten EPS estimates 50% of the time and revenue estimates 88% of the time, indicating a degree of stability and market confidence in the company's financial performance.
- Estimate Revision Dynamics: In the last three months, EPS estimates saw one upward and one downward revision, while revenue estimates experienced four upward revisions with none downward, reflecting analysts' optimistic outlook on the company's future performance, which may influence investor decisions.
- Transaction Overview: Michael Ellenbogen, co-founder of Evolv Technologies, reported the sale of 80,745 shares of Class A Common Stock for approximately $510,000, as per SEC Form 4, indicating ongoing liquidity management within the company.
- Holding Impact: The transaction accounted for 3.73% of Ellenbogen's direct holdings, leaving him with 2,083,961 shares, which demonstrates his strong confidence in the company's future, alongside over one million options still outstanding.
- Market Reaction: The sale was executed under a Rule 10b5-1 plan established on June 12, 2025, indicating that Ellenbogen's actions were independent of short-term market fluctuations, occurring against a backdrop of a 104.39% stock price increase, reflecting his recognition of the company's performance.
- Financial Performance: Evolv reported a revenue of $38.5 million in Q4 2025, a 32% year-over-year increase, and transitioned from a net loss of $15.7 million in Q4 2024 to a net income of $10.9 million, showcasing strong growth potential in the security technology sector.

- Agreement Renewal and Expansion: Evolv Technologies announced the renewal and expansion of its multi-year agreement with Crypto.com Arena, covering the 2024 use of Evolv Express concealed weapons detection systems and adding Evolv eXpedite autonomous bag-screening systems at a designated entrance, aimed at enhancing venue security and efficiency.
- Security System Upgrade: The newly deployed Evolv eXpedite system is expected to optimize entry processes, significantly improving entry efficiency at the Los Angeles venue, which hosts a growing number of sports and live entertainment events, thereby addressing increasing safety demands.
- Market Impact: This agreement expansion not only solidifies Evolv's market position in security technology but may also drive further applications in other large event venues, enhancing the company's competitive edge in the industry.
- Stock Price Reaction: Evolv Technologies' stock rose 0.94% in pre-market trading to $6.4, reflecting positive market sentiment towards the company's expansion of security solutions.







