Xerox (XRX) Q2 2025

Q1 2026 Q4 2025 Q3 2025 Q2 2025

Earnings

Xerox delivered a deeply disappointing second quarter, swinging to an adjusted loss of $0.64 per share against a consensus estimate of $0.07, a miss of more than 1,000%, even as revenue of $1.58 billion edged modestly ahead of the $1.55 billion analy… Read more Xerox delivered a deeply disappointing second quarter, swinging to an adjusted loss of $0.64 per share against a consensus estimate of $0.07, a miss of more than 1,000%, even as revenue of $1.58 billion edged modestly ahead of the $1.55 billion analysts had expected and held essentially flat year-over-year, down just 0.1%. The headline EPS collapse was driven by a sharp contraction in gross margin, which fell 440 basis points to 28.6%, compounded by higher interest expense tied to Lexmark acquisition financing and an outsized tax burden, all of which pushed GAAP net loss to $106 million compared to net income of $18 million a year ago. Shares fell sharply on the results, with the stock down roughly 51% year-to-date entering the print. Looking ahead, the company's revised 2025 guidance now incorporates six months of Lexmark activity, targeting constant-currency revenue growth of 16 to 17% and free cash flow of approximately $250 million, though management cautioned that $50 to $75 million in one-time synergy costs will weigh on near-term results.