The earnings call highlighted successful strategic moves such as the Lexmark acquisition and strong performance in the IT Solutions segment, which were countered by challenges in print revenue, declining operating income margin, tariff and tax issues, and negative free cash flow. The outlook includes cautious optimism with expected synergies from acquisitions and strategic cost reductions.

Company Guidance -

Q3 2025

During the Xerox Holdings Corporation Second Quarter 2025 Earnings Release Conference Call, CEO Steve Bandrowczak provided guidance highlighting several key metrics. The company reported revenue of approximately $1.58 billion, which was flat year-over-year in actual currency but declined by 1.1% in constant currency. Adjusted operating income margin stood at 3.7%, marking a decrease of 170 basis points compared to the previous year. Free cash flow was a negative $30 million, attributed partly to delays in finance receivables sales. Additionally, adjusted loss per share was $0.64, a decline of $0.93 from the previous year, primarily due to an unfavorable tax rate. The company emphasized the strategic benefits expected from its Reinvention initiatives and the recent Lexmark acquisition, projecting cost synergies to exceed $250 million within two years. Looking ahead, Xerox anticipates 16% to 17% revenue growth for the full fiscal year 2025, driven by the integration of Lexmark, despite some conservative assumptions regarding equipment demand stability.

Lexmark Acquisition Completed

The closing of the Lexmark acquisition in early July marked an important milestone in Xerox's Reinvention strategy. The integration is progressing well with expected cost synergies increased to over $250 million from the original estimate of $200 million, all realizable within the next two years.

IT Solutions Segment Growth

Strong demand for cloud enablement services led to IT Solutions revenue and gross profit increasing by more than 150% year-over-year. Pro forma for the acquisition of ITsavvy, IT Solutions gross billings increased by 8% year-over-year.

Cost Control and Reduction

Xerox achieved a 12% year-over-year reduction in operating expenses excluding certain costs, contributing to cost control efforts that offset some revenue declines.

Debt Reduction Strategy

The Lexmark acquisition was funded primarily with debt but resulted in a lower gross debt leverage ratio. The company plans to repay debt using improved free cash flow and proceeds from the reduction of finance receivables.

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)	0.19 / -	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.