Xerox (XRX) Q3 2025

Q1 2026 Q4 2025 Q3 2025 Q2 2025

Earnings

Xerox delivered a sharply mixed third quarter, posting adjusted earnings of $0.20 per share against a consensus estimate of negative $0.18, a 212.80% beat, while revenue of $1.96 billion fell 3.65% short of the $2.04 billion Wall Street had expected,… Read more Xerox delivered a sharply mixed third quarter, posting adjusted earnings of $0.20 per share against a consensus estimate of negative $0.18, a 212.80% beat, while revenue of $1.96 billion fell 3.65% short of the $2.04 billion Wall Street had expected, triggering a notable pre-market sell-off. The headline revenue figure rose 28.3% year over year, but that growth was almost entirely attributable to the July 1 close of the $1.50 billion Lexmark acquisition; on a pro forma basis, revenue actually declined 7.8%, with equipment sales falling 16.4% as tariff uncertainty and government funding delays suppressed transactional print demand. Gross margin compressed to 22.7% from 32.4%, weighed down by a $102 million Lexmark inventory purchase accounting charge and higher tariff-related product costs. Free cash flow strengthened to $131 million from $107 million a year ago, offering some balance. Management raised Lexmark cost synergy targets by $50 million to at least $300 million but trimmed full-year free cash flow guidance to approximately $150 million from $250 million, reflecting roughly $35 million in incremental net tariff costs.