Companies /Industrials

Xerox Holdings Corp

NASDAQ: XRX Business Equipment & Supplies
$2.97
▼ $0.01 (−0.34%) today
Markets closed · 5:04pm ET

Q4 2025 Earnings

Reported Jan 29, 2026, 6:35am ET · SEC source
$-0.10
Miss −202.67%
EPS · est. $0.10
$2.0B
Miss −1.22%
Revenue · est. $2.1B
−14.7%
Trailing market
XRX vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
0+5%+10%+15%Jan 29Jan 30report 6:35am ETearnings−0.9%+1.7%
0+5%+10%+15%Jan 29Jan 30earnings−0.9%+1.7%
XRX +1.7%S&P 500 −0.9%
0+6%+12%Jan 29Jan 30report 6:35am ETearnings−1.7%+1.7%
0+6%+12%Jan 29Jan 30earnings−1.7%+1.7%
XRX +1.7%NASDAQ −1.7%
−10%−5%0+5%Jan 28Feb 6report 6:35am ETearnings−2.4%−6.3%
−10%−5%0+5%Jan 28Feb 6earnings−2.4%−6.3%
XRX −6.3%S&P 500 −2.4%
−10%−5%0+5%Jan 28Feb 6report 6:35am ETearnings−5.4%−6.3%
−10%−5%0+5%Jan 28Feb 6earnings−5.4%−6.3%
XRX −6.3%NASDAQ −5.4%
−12.45%
Day of report
+7.35%
Next session
+3.92%
One week
−16.67%
30 days

S&P 500 over the same 30 days: −1.98%.

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-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

“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.”

Xerox CEO, on the earnings call

Forward Guidance & Outlook

For 2026, Xerox guided to revenue above $7.5 billion, adjusted operating income in the range of $450-$500 million (representing more than $200 million of growth year-over-year), and free cash flow of approximately $250 million. Guidance reflects approximately $50 million of revenue headwinds and $40 million of adjusted operating income headwinds from Xerox Financial Services forward flow dynamics. Free cash flow guidance incorporates approximately $335 million of forward flow benefits, $290 million of net interest expense, and $160 million of pension contributions. Management expects no material tariff impact on Lexmark due to USMCA-compliant manufacturing in Mexico, but anticipates rising DRAM prices will have more significant pricing and availability impacts on Print in the second half of 2026. The company reaffirmed at least $300 million in Lexmark integration synergies and continues to expect over $1/share of accretion from the Lexmark transaction.

XRX YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$0$600.0M$1.2B$1.8B$1.6B$2.0BRevenue$502.0M$579.0MGross Profit
$0$600.0M$1.2B$1.8BRevenueGross Profit

XRX Revenue by Segment

Print and Other
Equipment Sales - Mid-range$258.0M−0.8%
IT Solutions$158.0M+38.6%
Equipment Sales - Entry$168.0M+180.0%
IT Products$100.0M+35.1%
Equipment Sales - High-end$52.0M−23.5%
IT Services$55.0M+41.0%

Figures from SEC filings and company reports. Not investment advice.