Xerox snížil výhled upraveného provozního zisku na rok 2026 na 450–475 mil. USD z červencového rozpětí 555–605 mil. USD. Levi & Korsinsky prověřuje zveřejňování informací o účetním zachycení pohledávek souvisejících s cly.
Xerox cut its 2026 adjusted operating income outlook by up to $130 million on October 29, three months after raising it by $105 million, partly based on an IEEPA tariff-receivable benefit. Investors who suffered losses may have legal rights.
, /PRNewswire/ -- Xerox Holdings Corporation (NASDAQ: XRX) shares fell sharply on October 29, 2026, after the Company cut its full-year 2026 adjusted operating income outlook to $450 million to $475 million. The revised outlook was as much as $130 million below the range announced in July, which included a $105 million pretax benefit from recognizing IEEPA tariff receivables. If you bought Xerox stock and are now holding losses, this affects you directly. Shareholders who lost money are encouraged to report their XRX losses here or contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.
On July 30, 2026, Chief Financial Officer Chuck Butler said adjusted operating income was "now expected in the range of $555 million to $605 million, up $105 million from the prior outlook, primarily because of the recognition of IEEPA tariff receivables in Q2."
Xerox's Form 10-Q, submitted to the SEC on August 6, 2026, recorded a $105 million reduction to Cost of Sales in connection with the tariff receivables. The entry was disclosed under Note 12 -- Debt. It increased reported operating income by $105 million, while related financing costs were recorded elsewhere over time. The revised outlook now sits $105 million to $130 million below the July range.
Levi & Korsinsky is investigating whether Xerox may not have adequately disclosed how its tariff-receivable accounting shaped reported results and guidance. The investigation also concerns whether investors may have claims arising from potential securities law violations.
Xerox investors who lost money can have their Xerox losses reviewed today or call (212) 363-7500.
WHY LEVI & KORSINSKY -- Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors.
Frequently Asked Questions About the XRX Investigation
Q: Who is eligible to participate in the XRX investigation?A: Investors who purchased XRX stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.
Q: Which statements are being investigated as potentially misleading?A: The investigation concerns whether Xerox made materially false or misleading statements or omissions regarding its recognition of $105 million in IEEPA tariff receivables and the resulting benefit to its full-year 2026 adjusted operating income outlook. On October 29, 2026, Xerox cut its outlook to $450 million–$475 million, down from $555 million–$605 million announced in July. The investigation will examine whether the Company adequately disclosed the nature and implications of the tariff-related accounting benefit before the guidance reduction.
Q: What do XRX investors need to do right now?A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible to participate in the investigation.
Q: What documents do I need to participate?A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.
Q: What if my XRX losses are small -- is it still worth contacting a lawyer?A: Yes. There is no minimum loss amount required to participate in the investigation.
Q: Do I need to go to court or give testimony?A: No. Participating in the investigation does not require court appearances or depositions. If legal action is later pursued, the overwhelming majority of affected investors never appear in court either.
Q: What does it cost me to participate?A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in any resulting action, these matters are generally handled on a contingency basis, with any attorneys' fees and expenses subject to court approval.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
Attorney Advertising. Prior results do not guarantee similar outcomes.
Xerox ve čtvrtletí končícím v září 2026 vykázal upravený zisk na akcii ve výši 0,06 USD, zatímco se očekávala ztráta 0,07 USD; tržby dosáhly 1,87 mld. USD.
Xerox Holdings Corporation (XRX - Free Report) came out with quarterly earnings of $0.06 per share, beating the Zacks Consensus Estimate of a loss of $0.07 per share. This compares to earnings of $0.2 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +185.71%. A quarter ago, it was expected that this company would post earnings of $0.06 per share when it actually produced earnings of $0.36, delivering a surprise of +500%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Xerox, which belongs to the Zacks Office Supplies industry, posted revenues of $1.87 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 0.21%. This compares to year-ago revenues of $1.96 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Xerox shares have added about 17.7% since the beginning of the year versus the S&P 500's gain of 13.1%.
What's Next for Xerox?While Xerox has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Xerox was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.27 on $1.96 billion in revenues for the coming quarter and $0.17 on $7.59 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Office Supplies is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Industrial Products sector, LiqTech International, Inc. (LIQT - Free Report) , is yet to report results for the quarter ended September 2026.
This company is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of +60%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
LiqTech International, Inc.'s revenues are expected to be $6 million, up 57.5% from the year-ago quarter.
Xerox na veletrhu PRINTING United Expo 2026 rozšířil portfolio produkčního tisku o tři nové platformy včetně inkjetových a šestibarevného vlajkového stroje pro grafické umění.
LAS VEGAS--(BUSINESS WIRE)--Xerox Holdings Corporation (NASDAQ: XRX) today announced a major production print portfolio expansion as part of PRINTING United Expo 2026, introducing three new press platforms and enhancements to existing presses.
With these introductions, Xerox is deepening its commitment to production print with an inkjet portfolio spanning cut-sheet and continuous-feed, alongside a new 6-color flagship press for graphic arts. Integrated with the Xerox end-to-end production ecosystem of presses, workflow automation software, media expertise and lifecycle services, the new offerings extend specialty color and intelligent automation capabilities across the broader portfolio, helping print providers bring more work in-house, streamline production and pursue new revenue opportunities.
“PRINTING United is the ideal stage to show how Xerox is driving the future of production print,” said Terry Antinora, President, Global Production Print Services at Xerox. “We’re giving print providers a complete inkjet portfolio, embellishment, intelligent automation, and AI-powered tools that help them grow, differentiate, and win. Everything we’re launching is designed to improve customer profitability — not just increase print volume.”
Attendees can explore the following additions to the Xerox production print portfolio:
Xerox® Proficio™ Jet CS1100: A B3 cut-sheet inkjet press that delivers speeds of up to 300 images per minute. New Xerox-developed printheads and a high-definition ink formulation deliver 1200 × 1200 dots per inch resolution with 2-bit variable-drop imaging for precise dot placement. A scalable drying architecture supports media up to 350 grams per square meter, including coated stocks. The platform enables print providers to shift a wider range of work, from transactional and direct mail to graphic communications and commercial print, onto a single press without compromising quality. Xerox® Proficio™ Jet CF1200: An industrial continuous-feed inkjet press that delivers speeds of up to 525 feet per minute at 1200 dpi within a compact 28-foot footprint. The smallest 20-inch press in its class handles between 4 million and 30 million Letter / A4 impressions per month, helping high-volume print providers increase capacity, operate more efficiently and protect margins. Xerox® Proficio™ PX700 FLX: A new graphic arts production press that delivers speeds of up to 120 pages per minute and supports up to six colors inline at rated speed. New Fluorescent Green specialty toner further expands the color gamut and improves RGB accuracy when paired with Fluorescent Pink. Intelligent automation helps reduce operator intervention and improve consistency, enabling print providers to create differentiated, high-value applications. Xerox® Proficio™ PX300 and PX500 feature updates: Enhanced with new Beyond CMYK and fifth-color options, including Gold, Silver and White, the Proficio PX300 and Proficio PX500 expand opportunities for metallic effects and printing on dark and transparent media. The Proficio PX300 now also features the Xerox® PredictPrint Media Manager, which uses AI-assisted cloud intelligence to simplify media setup and optimize color stability. At PRINTING United, Xerox will host demonstrations and discussions on generative AI for specialty print, workflow analytics and automation through Xerox® FreeFlow® Core and Xerox® FreeFlow® Vision Connect Software, and generative AI, along with business development resources available through the Genesis Initiative. The Xerox Genesis Initiative helps creative teams maximize the value of Beyond CMYK technologies through specialty inks and embellishments, and application development resources.
To learn more, visit Xerox at PRINTING United booth #N6729 or explore the company’s production print portfolio at Xerox.com.
About Xerox Holdings Corporation (NASDAQ: XRX)
Xerox is a global technology company with more than 120 years of innovation leadership. We design, manufacture, deliver, and support print, IT, and digital services for nearly 200,000 clients worldwide. Our integrated, AI-powered portfolio includes managed and production print, document management, workflow automation, cybersecurity, cloud managed services, IT infrastructure and collaboration technology. Serving clients from growing SMBs to 90 percent of the Fortune 500, Xerox supports leading healthcare, government, financial services, education, legal, retail and commercial organizations. Through direct sales and a global network of channel partners, we deliver the technology, expertise, and support organizations need to operate efficiently, securely and at scale.
Note: To receive RSS news feeds, visit www.news.xerox.com. For open commentary, industry perspectives and views, visit www.linkedin.com/company/xerox or www.youtube.com/XeroxCorp.
Xerox za tři měsíce vzrostl o 11,5 % a zároveň zvýšil výhled tržeb na zhruba 7,6 miliardy USD pro rok 2026. Cíl synergií z Lexmarku zvýšil alespoň na 350 milionů USD.
Key Takeaways Xerox gained 11.5% in three months, beating the industry and S&P 500 Composite over the period.Lexmark expanded customer reach as Q2 equipment sales rose 15.2% and post-sale revenues climbed 30.7%.Xerox raised 2026 revenues and operating income outlooks while targeting at least $350M in Lexmark synergies. Xerox Holdings Corporation (XRX - Free Report) stock has gained 11.5% over the past three months, outperforming the industry’s 2.8% growth and the Zacks S&P 500 Composite's 5.1% return.
Three-Month Share Price Performance
Image Source: Zacks Investment Research
Let us delve deeper into the factors that have contributed to the company’s outperformance.
Lexmark Combination Expands Revenue OpportunitiesFollowing the Lexmark acquisition, Xerox has expanded customer coverage, partner reach and cross-sell opportunities. In the second quarter of 2026, Equipment sales rose 15.2% year over year to $387 million, while post-sale revenues increased 30.7% to $1.35 billion. Management is targeting new customer wins and expansion across Entry, Production, IT Solutions and digital services. The broader portfolio and combined sales capabilities provide multiple avenues to stabilize revenues and support longer-term growth. Improved product coverage could also deepen customer relationships and increase recurring revenue opportunities over time.
Cash Flow Generation & Deleveraging ProgressXerox generated $37 million of operating cash flow in the second quarter of 2026 compared with an $11 million outflow a year earlier, while free cash flow improved to $11 million from a $30 million outflow. Debt reduction remains a key capital-allocation priority. During the quarter, Xerox cut total debt by more than $200 million, including repayment of $125 million of 2026 senior notes and repurchases of $93 million of 2028 notes. Gross leverage declined to 5.9X from 7.0X in the first quarter, while net leverage fell to 5.1X from 6.0X. Further deleveraging should reduce refinancing risk and improve financial flexibility ahead of upcoming maturities.
Liquidity Coverage Provides Financial FlexibilityXerox’s current ratio improved to about 1.18 in the second quarter of 2026 from roughly 1.11 at year-end 2025, mainly due to a $161 million reduction in short-term debt and higher other current assets. Current assets of $3.70 billion remained above current liabilities of $3.13 billion, providing a clearer cushion for near-term obligations. The stronger liquidity position supports Xerox’s ability to meet short-term commitments while continuing its deleveraging efforts. Maintaining current assets above current liabilities also provides added flexibility as the company executes its operational and integration priorities.
Raised Outlook Promises Higher GrowthXerox expects revenues of approximately $7.6 billion for 2026, up from its previous outlook of more than $7.5 billion, reflecting higher expectations for the Print & Other segment. Adjusted operating income is projected at $555 million to $605 million, up from the prior range of $450-$500 million, while free cash flow guidance remains approximately $250 million. Xerox also raised its Lexmark gross cost synergy target by $50 million to at least $350 million, with roughly half expected to be realized in 2026. The higher synergy target provides additional scope for margin improvement and cost efficiencies. Combined with the raised revenue outlook, these initiatives could support better earnings performance.
XRX’s Zacks Rank & Stocks to ConsiderXerox currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A couple of better-ranked stocks in the broader Industrial Products sector are Apogee Enterprises, Inc. (APOG - Free Report) and Caterpillar Inc. (CAT - Free Report) .
Apogee Enterprises carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 12%.
APOG beat earnings estimates in three of the last four reported quarters and missed once, with an average earnings surprise of 12.2%.
Caterpillar carries a Zacks Rank #2 at present. It has a long-term earnings growth expectation of 21.1%.
CAT delivered a trailing four-quarter earnings surprise of 18.1%, on average.
Starteepo vyzvala Xerox ke strategickému přezkumu finanční divize XFS, kterou oceňuje na 1,3–1,5 miliardy USD. Akcie Xeroxu v premarketu rostou až o 8 %.
Společnost Starteepo, vedená českým investorem Františkem Bostlem, vyzvala společnost Xerox, v níž navýšila svůj podíl na 7,34 procenta včetně opcí, k přijetí kroků, které by odemkly hodnotu pro akcionáře. Zároveň požaduje strategické přezkoumání podnikání Xeroxu v oblasti finančních služeb. Akcie Xeroxu reagují v premarketu růstem až o osm procent.
Pražská investiční společnost je aktuálně se zmíněným podílem 7,34 procenta včetně opcí po firmách Blackrock a Vanguard třetím největším akcionářem Xeroxu. V otevřeném dopise firmu vyzývá ke snížení zadlužení rozvahy a k disciplinovanějšímu nakládání s kapitálem.
„Starteepo oceňuje pokrok současného managementu při integraci Lexmarku, zvyšování ziskovosti a snižování zadlužení. Za další významnou příležitost považuje Xerox Financial Services (XFS), finanční divizi zajišťující financování zařízení zákazníkům. Podle analýzy Starteepo by XFS mohla mít hodnotu 1,3–1,5 miliardy dolarů, tedy přibližně 7,69 USD na akcii Xeroxu. Fond proto navrhuje zvýšit transparentnost výsledků XFS a zahájit strategické posouzení možností jejího dalšího rozvoje, včetně zapojení externího kapitálu, joint venture, částečné monetizace či případného prodeje,“ uvádí Bostlova společnost v tiskové zprávě.
Zmíněná hodnota XFS podle Starteepo – 7,69 USD na akcii – značí více než dvojnásobek ceny akcií celé společnosti, které v pátek na newyorské burze uzavřely na ceně 3,32 USD.
Xerox vyrábí tiskárny, skenery, spotřební materiál a příslušenství. Akcie firmy za posledních 12 měsíců ztratily přibližně 13 procent, což tržní hodnotu dostalo na úroveň kolem 418 milionů dolarů, píše agentura Bloomberg.
Starteepo také uvedla, že divize XFS by měla zvážit takzvanou optimalizovanou kapitálovou strukturu, v níž by financování portfolia poskytovala třetí strana, zatímco Xerox by si ponechal správu služeb a vztahy se zákazníky. Starteepo poukázalo na to, že podobné modely financování využívají například společnosti HP, Siemens nebo General Electric.
„Domníváme se, že pokračující snižování zadlužení, větší transparentnost divize XFS a vybudování kapitálově nenáročné platformy společně povedou k růstu hodnoty vlastního kapitálu společnosti. V konečném důsledku vidíme méně zadlužený a nově přeceněný Xerox jako firmu, která bude lépe schopna podílet se na konsolidaci odvětví a dosahovat prémiového ocenění. Jsme přesvědčeni, že po úspěšném snížení zadlužení rozvahy a následném přecenění společnosti by Xerox mohl být pro potenciální zájemce o převzetí v budoucnu oceněn až na 3,3 mld. USD hodnoty vlastního kapitálu, což představuje více než 18 USD na akcii, pokud by se společnost rozhodla dále zvažovat další strategické alternativy,“ stojí dále v dopise Starteepo.
Xerox ve 2. čtvrtletí překonal odhady a zvýšil výhled na rok 2026 díky synergiím Lexmarku a úsporám nákladů. Upravená provozní marže vzrostla na 10,6 %.
Key Takeaways Xerox beat Q2 estimates and raised 2026 revenue and adjusted operating income guidance.Lexmark synergies and cost actions lifted margins, with adjusted operating margin reaching 10.6%.Pro forma revenue fell 6.5%, while free cash flow improved to $11 million in the second quarter. Xerox Holdings Corporation (XRX - Free Report) topped second-quarter 2026 expectations and raised its full-year outlook as Lexmark integration benefits and cost actions lifted profitability. Revenue growth was acquisition-driven, while underlying demand remained softer.
The main question is how much of the profit improvement can persist without the $105 million tariff-receivable benefit. Margin expansion excluding that item and higher Lexmark synergy targets support the operating case, but pro forma revenue declines and modest free cash flow keep execution in focus.
XRX's Q2 Beat Included a $105 Million TailwindXRX reported earnings of 36 cents per share, topping the Zacks Consensus Estimate by more than 100%. Revenues of $1.92 billion beat the consensus mark by 1% and increased 22% year over year.
Profitability received material support from a $105 million pre-tax benefit tied to tariff receivables. Adjusted operating margin reached 10.6%, but excluding that benefit, the margin was 5.1%, still up 140 basis points year over year.
Xerox Raises 2026 Profit Guidance After Q2Xerox now expects 2026 revenues of approximately $7.6 billion, up from its prior outlook of more than $7.5 billion. The revision reflects higher expectations for the Print and Other segment.
Adjusted operating income guidance increased to $555-$605 million from $450-$500 million. Free cash flow guidance remained approximately $250 million, making the unchanged cash target an important counterpoint to the higher profit outlook.
XRX's Lexmark Synergies Add Operating LeverageXerox raised its Lexmark gross cost synergy target by $50 million to at least $350 million, with half expected to be realized in 2026. The higher target builds on Project Reinvention and the company's broader effort to reduce its cost base.
Adjusted gross margin improved to 36.4% from 29.3%, aided by Lexmark, integration synergies and transformation savings. The margin progress suggests operating leverage is emerging, although the tariff-receivable benefit also contributed to reported profitability.
Xerox's Pro Forma Revenue Decline Tests MomentumReported revenue rose 22% year over year, but pro forma revenue declined 6.5%. Print and Other revenue fell 6.1% on a pro forma basis, while pro forma equipment revenue dropped 13%, showing that acquisition-driven growth has not yet translated into underlying expansion.
HP Inc. (HPQ - Free Report) remains a relevant print benchmark because it continues to report a dedicated Printing segment. Canon Inc. (CAJPY - Free Report) likewise competes across office multifunction devices, laser printers and production printing through its Printing Business Unit.
XRX's Free Cash Flow Must Catch UpFree cash flow improved to $11 million in the second quarter from an outflow of $30 million a year earlier. Operating cash flow reached $37 million compared with an $11 million outflow in the prior-year period.
Image Source: Zacks Investment Research
The improvement is directionally positive, but Xerox still expects approximately $250 million of free cash flow for 2026. Delivery against that target will help show whether margin gains and integration savings are translating into stronger cash generation.
XRX's Style Scores Point to Mixed Near-Term SignalsThe quarter strengthened Xerox's profit outlook, but the mix of tariff benefits, synergy gains and contracting pro forma revenues keeps the durability question open. Stabilization in underlying revenue trends would make the margin improvement more convincing.
XRX currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term stance. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It also has a Value Score of A, Growth Score of A, Momentum Score of A and VGM Score of A. Those grades are constructive within the Style Score framework, but Style Scores are designed to complement rather than override the Zacks Rank.
Key Takeaways XRX earnings rose to 36 cents per share, while revenues increased 22% y/y to $1.92 billion.Lexmark and a $105 million tariff benefit helped lift its adjusted operating margin to 10.6% y/y.Xerox raised 2026 revenue guidance to about $7.6 billion and profit outlook to $555-$605 million. Xerox Holdings Corporation (XRX - Free Report) reported impressive second-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate.
XRX’s earnings of 36 cents per share topped the Zacks Consensus Estimate by more than 100%. In the year-ago quarter, the company had incurred an adjusted loss of 64 cents per share.
Revenues of $1.92 billion surpassed the consensus mark by 1% and rose 22% year over year. The Lexmark acquisition lifted reported growth, while pro forma revenues declined 6.5%. A $105 million pre-tax benefit from IEEPA tariff receivables materially supported profitability.
However, the better-than-expected results and a raised 2026 revenue guidance failed to impress investors, as the stock has declined 15.5% since the earnings release on July 30.
For 2026, Xerox expects revenues of approximately $7.6 billion, up from its previous outlook of more than $7.5 billion. The revision reflects higher expectations for the Print and Other segment. The Zacks Consensus Estimate for the same is pegged at $7.59 billion.
Xerox shares have depreciated 28.6% over the past year compared with the Office Supplies industry’s 7.2% decline. The Zacks S&P 500 composite has risen 21.1% over the same time frame.
XRX’s Revenue Mix Reflects Lexmark ContributionEquipment sales revenues increased 15.2% year over year on a reported basis and 15% at constant currency to $387 million. However, pro forma equipment revenues declined 13%, reflecting lower installations and a shift toward entry-level products.
Post-sale revenues climbed 30.7% on a reported basis and 29.7% at constant currency to $1.35 billion. On a pro forma basis, the metric fell 3.9%, hurt by lower equipment service, managed print services and financing revenues.
Xerox’s Print Business Posts Strong Profit GrowthPrint and Other revenues totaled $1.73 billion, up 26.9% year over year but down 6.1% on a pro forma basis. Segment profit surged to $220 million from $65 million, while the segment margin expanded to 12.7% from 4.8%.
Total installations declined 6% on a pro forma basis. Entry color installations rose 6%, but mid-range and high-end installations fell 13% and 19%, respectively. Management expects the entry-product backlog to support installations and revenues during the second half of 2026.
XRX’s IT Solutions Revenues DeclineIT Solutions revenues declined 8.9% year over year to $194 million. Product revenues fell 8.5% to $140 million, while services revenues decreased 14% to $49 million. Segment profit dropped 30% to $7 million and margin contracted to 3.7% from 4.8%.
Underlying activity was firmer than reported revenues. Pro forma non-GAAP gross billings rose 4% to $228 million, with year-to-date gross billings and gross bookings increasing 11% and 6%, respectively. Xerox cited double-digit growth in infrastructure and networking offerings and endpoints.
Xerox’s Margins Benefit From Tariff ReceivablesAdjusted operating income increased to $203 million from $59 million. The adjusted operating margin expanded 690 basis points to 10.6%. Excluding the tariff receivables benefit, the margin was 5.1%, up 140 basis points year over year.
Adjusted gross margin improved to 36.4% from 29.3%, aided by Lexmark, integration synergies and transformation savings. These benefits were partly offset by higher incentive compensation, product costs and lower finance-related fees. Non-financing interest expense increased 82% to $100 million.
XRX Strengthens Cash Flow & Lowers DebtOperating cash flow was $37 million compared with an outflow of $11 million a year earlier. Free cash flow improved to $11 million from an outflow of $30 million. Cash and cash equivalents were $495 million at June 30, 2026, compared with $512 million at year-end 2025.
The company reduced total debt by $223 million during the quarter. Total debt was $4.22 billion, while gross and net leverage improved to 5.9 times and 5.1 times, respectively, from 7 times and 6 times at the end of the first quarter.
Xerox’s Other Raised Guidance For 2026Adjusted operating income is now projected between $555 million and $605 million, up from $450 million to $500 million. Free cash flow guidance remains approximately $250 million. Xerox also raised its Lexmark gross cost synergy target by $50 million to at least $350 million, with half expected to be realized in 2026.
Currently, Xerox carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings SnapshotsTrane Technologies plc (TT - Free Report) reported impressive second-quarter 2026 results. TT’s adjusted earnings of $4.31 per share outpaced the consensus mark by 0.9% and rose 11.1% from the year-ago quarter’s actual. TT’s total revenues of $6.35 billion surpassed the consensus mark by 2.9% and increased 6.4% year over year.
Rollins, Inc. (ROL - Free Report) posted unimpressive second-quarter 2026 results. ROL’s adjusted earnings of 32 cents per share missed the Zacks Consensus Estimate by 5.9% but rose 6.7% year over year. Total revenues of $1.08 billion fell short of the consensus estimate by 1.7% but increased 7.9% from the year-ago quarter.
Xerox Holdings Corporation (XRX) ve 2. čtvrtletí vykázala zisk 0,36 USD na akcii a tržby 1,92 miliardy USD, obojí nad odhady. Loni ve stejném období měla ztrátu 0,64 USD na akcii.
Xerox Holdings Corporation (XRX - Free Report) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to a loss of $0.64 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +500.00%. A quarter ago, it was expected that this company would post a loss of $0.2 per share when it actually produced a loss of $0.11, delivering a surprise of +45%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Xerox, which belongs to the Zacks Office Supplies industry, posted revenues of $1.92 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.96%. This compares to year-ago revenues of $1.58 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Xerox shares have added about 11.4% since the beginning of the year versus the S&P 500's gain of 6.9%.
What's Next for Xerox?While Xerox has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Xerox was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.10 on $1.88 billion in revenues for the coming quarter and $0.03 on $7.59 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Office Supplies is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Industrial Products sector, Astec Industries (ASTE - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.
This maker of equipment for building, paving and mining is expected to post quarterly earnings of $1.05 per share in its upcoming report, which represents a year-over-year change of +19.3%. The consensus EPS estimate for the quarter has been revised 1.4% higher over the last 30 days to the current level.
Astec Industries' revenues are expected to be $402.5 million, up 21.9% from the year-ago quarter.
