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Xerox

Xerox (XRX) Q2 2026 Earnings

Reported Jul 30, 2026 at 6:44 AM ET · SEC Source

Q2 26 EPS

$0.38

BEAT +311.70%

Est. $-0.18

Q2 26 Revenue

$1.92B

BEAT +1.10%

Est. $1.90B

vs S&P Since Q2 26

+18.5%

BEATING MARKET

XRX +22.7% vs S&P +4.3%

Market Reaction

Did XRX Beat Earnings? Q2 2026 Results

Xerox Holdings Corp delivered a striking earnings beat in the second quarter of 2026, posting EPS of $0.38 against a consensus estimate of negative $0.18, a 311.70% positive surprise, while revenue of $1.92 billion edged past the $1.90 billion estima… Read more Xerox Holdings Corp delivered a striking earnings beat in the second quarter of 2026, posting EPS of $0.38 against a consensus estimate of negative $0.18, a 311.70% positive surprise, while revenue of $1.92 billion edged past the $1.90 billion estimate and climbed 21.9% year over year, lifted largely by the July 2025 Lexmark acquisition. The single most consequential driver of profitability, however, was a $105 million pre-tax benefit tied to IEEPA tariff receivables following a Supreme Court ruling, a one-time tailwind that Xerox subsequently monetized by selling those rights for $80 million in cash. On a pro forma basis that includes Lexmark in both periods, revenue actually declined 6.5%, underscoring that organic headwinds remain, with legacy equipment sales down 17.9% and IT Solutions revenue off 10.0%. Still, management struck a confident tone, raising its full-year 2026 revenue target to approximately $7.60 billion, lifting adjusted operating income guidance to $555 million to $605 million, and increasing the Lexmark gross cost synergy target by $50 million to at least $350 million.

Key Takeaways

  • • Lexmark acquisition contributed a 33.1-percentage point benefit to equipment sales revenue growth
  • • $105 million pre-tax benefit from IEEPA tariff receivables recognition following Supreme Court ruling
  • • Integration synergies and cost discipline driving pro forma gross margin expansion for second consecutive quarter
  • • Transformation-related productivity and cost savings
  • • $39 million gain on early extinguishment of debt

XRX Forward Guidance & Outlook

Xerox raised its full-year 2026 guidance: revenue of approximately $7.6 billion (up from above $7.5 billion), adjusted operating income of $555-$605 million (up from $450-$500 million), and free cash flow of approximately $250 million. The adjusted operating income guidance reflects a $105 million pre-tax benefit from IEEPA tariff receivables. Free cash flow guidance benefits from proceeds of the tariff receivable sale expected to be reclassified to operating cash flow, lower expected capital expenditures and taxes, partially offset by higher restructuring charges from the increased synergy target, higher net interest expense from the TPG JV, and lower than previously expected working capital. The company also raised its Lexmark gross cost synergy target by $50 million to at least $350 million.

24/7 Wall St

XRX YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

XRX Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q2 26

“Our second-quarter results gave us another reason for confidence. We made progress on each of our three strategic priorities: stabilizing revenue, increasing profitability, and reducing leverage. As a result, we are raising both revenue and adjusted operating income guidance, as well as our Lexmark gross synergy targets. While we have more to prove, I like how our team is showing up and executing with urgency and discipline.”

— Louie Pastor, Q2 2026 Earnings Press Release

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