The earnings call presented a mixed picture. The successful completion of the Lexmark acquisition and strong IT Solutions growth are significant positives, but these are somewhat offset by flat revenues, declining operating margins, and challenges related to tariffs. The company's strategic direction remains positive, with expectations of synergy realizations driving future improvements.

Company Guidance -

Q3 2025

During the Xerox Holdings Corporation Q2 2025 earnings call, guidance was provided on several key metrics and strategic initiatives. The company reported a revenue of approximately $1.58 billion, which was flat year-over-year in actual currency and declined by 1.1% in constant currency. The adjusted operating income margin was 3.7%, down 170 basis points from the previous year. Xerox experienced a free cash flow use of $30 million, partly due to a delay in the sale of a large portfolio of finance receivables. The adjusted loss per share was $0.64, down $0.93 year-over-year, primarily driven by an unfavorable tax rate. Guidance for fiscal year 2025 includes revenue growth of 16% to 17% in constant currency, incorporating around $1 billion from the Lexmark acquisition. The adjusted operating income margin is projected at around 4.5%, and free cash flow is expected to be approximately $250 million. The Lexmark acquisition is anticipated to generate more than $250 million in cost synergies within the next two years, while the company remains focused on debt repayment as its top capital allocation priority.

Lexmark Acquisition Completion

The acquisition of Lexmark was completed in early July, marking a significant milestone in Xerox's Reinvention strategy. The integration is progressing well, with expectations of more than $250 million in cost synergies within two years.

IT Solutions Segment Growth

Strong demand for cloud enablement services at the IT Solutions segment helped offset softer demand for print equipment, with IT Solutions revenue and gross profit increasing more than 150% year-over-year.

Cost Synergy Expectations Increased

Expected cost synergies from the Lexmark acquisition have been revised upwards from $200 million to more than $250 million, realizable within the next two years.

Improved Competitive Profile

The combined Xerox and Lexmark businesses are now a top 3 player in each major print category, with a significant portion of revenue from recurring sources.

Xerox (XRX) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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XRX Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 28, 2025	2025 (Q3)	-0.03 / -	0.25	―	―	―
Jul 31, 2025	2025 (Q2)	0.07 / -0.64	0.29	-320.69% (-0.93)
May 01, 2025	2025 (Q1)	-0.04 / -0.06	0.06	-200.00% (-0.12)
Jan 28, 2025	2024 (Q4)	0.53 / 0.36	0.43	-16.28% (-0.07)
Oct 29, 2024	2024 (Q3)	0.51 / 0.25	0.46	-45.65% (-0.21)
Jul 25, 2024	2024 (Q2)	0.43 / 0.29	0.44	-34.09% (-0.15)
Apr 23, 2024	2024 (Q1)	0.35 / 0.06	0.49	-87.76% (-0.43)
Jan 25, 2024	2023 (Q4)	0.52 / 0.43	0.89	-51.69% (-0.46)
Oct 24, 2023	2023 (Q3)	0.35 / 0.46	0.19	142.11% (+0.27)
Jul 25, 2023	2023 (Q2)	0.32 / 0.44	0.13	238.46% (+0.31)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

XRX Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jul 31, 2025	$5.22	$4.05	-22.41%
May 01, 2025	$4.39	$4.32	-1.59%
Jan 28, 2025	$9.43	$8.88	-5.83%
Oct 29, 2024	$9.70	$8.01	-17.42%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.