Xerox (XRX) Q4 2025 Earnings
Reported Jan 29, 2026 at 6:35 AM ET · SEC Source
Q4 25 EPS
$-0.10
MISS 202.67%
Est. $0.10
Q4 25 Revenue
$2.03B
MISS 1.22%
Est. $2.05B
vs S&P Since Q4 25
+19.9%
BEATING MARKET
XRX +28.2% vs S&P +8.3%
Full Year 2025 Results
FY 25 EPS
$-0.60
FY 25 Revenue
$7.02B
Market Reaction
Did XRX Beat Earnings? Q4 2025 Results
Xerox delivered a disappointing close to fiscal 2025, missing on both the top and bottom lines as the financial weight of its Lexmark acquisition overshadowed headline revenue growth. The company posted Q4 revenue of $2.03 billion, up 25.7% year-over… Read more Xerox delivered a disappointing close to fiscal 2025, missing on both the top and bottom lines as the financial weight of its Lexmark acquisition overshadowed headline revenue growth. The company posted Q4 revenue of $2.03 billion, up 25.7% year-over-year but roughly $20 million shy of the $2.05 billion consensus, while adjusted EPS came in at a loss of $0.10, missing the $0.10 estimate by 202.67% and falling sharply from the $0.36 profit recorded a year ago. The primary culprit was acquisition-related debt servicing, with non-financing interest expense surging to $80 million from $31 million in Q4 2024, compressing margins even as Reinvention cost actions provided partial offset. Equipment gross margin also contracted severely, to 12.0% from 27.4%, reflecting Lexmark's lower-margin product mix and rising DRAM costs. Analyst scrutiny over execution risks remains elevated, with shares already down roughly 80% over the past three years. Looking ahead, management guided 2026 revenue above $7.50 billion and adjusted operating income of $450 million to $500 million, contingent on realizing at least $300 million in Lexmark integration synergies.
Key Takeaways
- • Lexmark acquisition contributed 35.2 percentage points to equipment installation growth
- • Reinvention-related cost and productivity actions partially offset revenue declines
- • Pricing initiatives helped mitigate higher tariff-related costs
- • IT Solutions pro forma bookings, billings, and revenue grew double digits in FY 2025
- • Post-sale gross margin improved 1.3 percentage points year-over-year on a reported basis
XRX YoY Financials
Q4 2025 vs Q4 2024, source: SEC Filings
XRX Revenue by Segment
With YoY comparisons, source: SEC Filings
“We continue to execute with discipline in a difficult macro backdrop, including the lingering effects of government uncertainty and rising memory costs. The Lexmark integration is advancing ahead of plan, and the teams are delivering tangible synergies.”
— Steve Bandrowczak, Q4 2025 Earnings Press Release
XRX Earnings Trends
XRX vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
XRX EPS Trend
Earnings per share: estimate vs actual
XRX Revenue Trend
Quarterly revenue: estimate vs actual
XRX Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 MISS | $-0.28 | $-0.43 | -56.36% | $1.85B | +5.67% |
| Q4 25 MISS FY | $0.10 | $-0.10 | -202.67% | $2.03B | -1.22% |
| FY Full Year | — | $-0.60 | — | $7.02B | — |
| Q3 25 BEAT | $-0.18 | $0.20 | +212.80% | $1.96B | -3.65% |
| Q2 25 MISS | $0.07 | $-0.64 | -1,014.29% | $1.58B | +1.97% |