Xerox (XRX) Q3 2026 Earnings
GAAP diluted loss of $(7.73) per share includes a pre-tax non-cash goodwill impairment charge of $959 million ($955 million after-tax), or $6.87 per diluted share; adjusted EPS excludes this and restructuring ($14 million), intangible amortization ($31 million), non-service retirement costs ($21 million) and a $5 million gain on early debt extinguishment.
How Did XRX Stock React to Q3 2026 Earnings?
Did XRX Beat Earnings? Q3 2026 Results
Yes. Xerox reported Q3 2026 earnings of $0.02 a share on Oct 29, 2026, beating the $-0.12 consensus estimate by 116.4%. Revenue was $1.9B against a $1.9B estimate.
Xerox Holdings Corp delivered a narrow but meaningful earnings beat in Q3 2026, posting adjusted EPS of $0.02 against a consensus estimate of negative $0.12, a beat of 116.45%, while revenue of $1.87 billion edged past the $1.86 billion estimate despite slipping 4.7% year over year. The headline figures, however, were overshadowed by a $959 million pre-tax non-cash goodwill impairment charge tied to the Print and Other reporting unit, which drove a GAAP diluted loss of $7.73 per share and pushed Xerox shareholders' equity into a deficit of $683 million. On the operational side, adjusted operating income more than doubled to $124 million from $65 million a year ago, with margin expanding to 6.6% from 3.3%, powered by Lexmark integration synergies and aggressive cost actions. Those gains were tempered by sharply lowered full-year guidance, with adjusted operating income now projected at $450 to $475 million versus a prior range of $555 to $605 million, and free cash flow cut to $50 to $100 million; management also suspended common and preferred dividends to prioritize debt reduction amid rising input costs and a weaker market outlook.
- Double-digit equipment revenue growth in Entry (+20.9%) and High-end/Production (+14.1%); total installs up 9.0%
- Lexmark integration synergies, Transformation cost and productivity actions drove adjusted operating margin to 6.6% from 3.3%
- Lower SAG expense from cost actions, lower incentive compensation and bad debt expense
- Lower tariff-related costs
- Post sale revenue down 4.5% on lower service, managed print, supplies, rental and financing revenue
- IT Solutions revenue down 18.9% on timing of large prior-year public sector placements
- Higher non-financing interest expense tied to TPG joint venture financing
“This quarter, Print equipment revenue grew and adjusted operating margin doubled as we continued to execute against our three priorities: stabilize revenue, increase profitability and reduce leverage.”
Xerox CEO, on the earnings call
What Is Xerox's Outlook?
Xerox updated its full-year 2026 guidance: - Revenue of approximately $7.6 billion. - Adjusted operating income of $450–475 million, down from $555–605 million. - Free cash flow of $50–100 million, down from $250 million. The lower adjusted operating income reflects higher-than-expected input costs, a mix shift from Mid-range to Entry, a weaker market outlook and lower-than-expected IT Solutions profit. The lower free cash flow also reflects finance receivable and IEEPA tariff receivable proceeds being pushed into 2027. The adjusted operating income guidance includes a $105 million pre-tax IEEPA tariff receivable benefit. The corresponding free cash flow benefit from selling that receivable is $80 million. Estimated full-year pre-tax loss is approximately $(195) million, and estimated operating cash flow is $145–195 million, with $95 million of capital expenditures. Management is taking cost actions and has suspended common and preferred dividends to preserve cash for debt reduction.
XRX YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $1.9B | $2.0B | −4.7% |
| Gross Profit | $545.0M | $1.2B | −53.5% |
| Net Income | −$1.0B | −$1.5B | −33.6% |
XRX Revenue by Segment
When Does Xerox Report Next?
Figures from SEC filings and company reports. Not investment advice.