Xerox (XRX)
NASDAQ:XRX
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Earnings Data
Report Date
Jul 28, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
-0.08Last Year’s EPS
-0.64Same Quarter Last Year
Based on 0 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call contained meaningful positive operational and financial signs: strong reported revenue growth driven by the Lexmark acquisition, meaningful margin expansion (adjusted operating margin +240 bps), improved IT Solutions bookings/billings, stated integration and transformation savings, liquidity actions (IP JV) and reaffirmed 2026 guidance. However, material challenges remain in the underlying organic business (pro forma revenue declined 4%), elevated leverage (~7x pro forma), Q1 negative free cash flow, higher interest expense and component cost pressure (memory and oil). Management presented a credible multi‑quarter plan focused on stabilizing revenue, increasing profitability and reducing leverage and provided clear near‑term initiatives and targets to address the headwinds. Overall, the positives (margin inflection, bookings growth, cost savings plan, liquidity actions and reaffirmed guidance) modestly outweigh the negatives tied to leverage, cash flow and organic demand softness.Company Guidance
Reported Revenue Growth (Q1 2026)
Total revenue of $1.85 billion, up 27% year‑over‑year on a reported basis and up 24% in constant currency, reflecting Lexmark acquisition contribution; management notes Q1 would have exceeded consensus by approximately $80 million after adjusting for a ~1% pull‑forward benefit.
Improving Profitability and Margins
Adjusted operating margin improved to 3.9%, up 240 basis points year‑over‑year (first YoY increase in 5 quarters). Adjusted gross margin was 30.3%, up 60 basis points YoY.
Print Segment Performance and Product Momentum
Print equipment revenue was $378 million, up 33% reported (31% constant currency); print post‑sales revenue was $1.31 billion, up 30% reported (27% CC). Print segment margin rose to 5.1%, up 190 basis points YoY. New production device Proficio is tracking ahead of plan and Toshiba Americas added Xerox PrimeLink production printers to its portfolio.
IT Solutions Growth and Pipeline Expansion
IT Solutions bookings increased 32% and gross billings grew 21% YoY; gross profit in the segment was $30 million with gross margin of 19.5%, up 230 basis points YoY. Segment profit was $6 million with a 3.9% margin (up 80 bps). Total contract value of new deals and pipeline improved sequentially.
Cost Savings and Integration Synergies Guidance
Company expects $250 million to $300 million of incremental savings in 2026, including $150 million to $200 million from Lexmark integration and $100 million of in‑year transformation savings; reiterated target of reaching double‑digit operating margins over time.
Capital Structure Actions and Liquidity
Completed IP JV with TPG Angelo Gordon raising >$400 million net liquidity; repurchased $101 million face value of 2028 notes for $45 million capturing $56 million of discount; ended Q1 with $637 million cash and intends to be opportunistic on further repurchases.
Reaffirmed 2026 Guidance
Management reaffirmed full‑year guidance: revenue > $7.5 billion; adjusted operating income $450–$500 million (an increase of >$200 million vs 2025); expected free cash flow of approximately $250 million for 2026.
Commercial and Go‑to‑Market Operational Improvements
Unified go‑to‑market structure, inside sales equipment sales grew 24% YoY, account coverage expanded from 35,000 to 65,000 clients with revenue accountability quadrupling to > $200 million; greater owner control of product design and manufacturing to improve margins over time.
XRX Earnings History
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 |
|---|---|---|---|
Apr 30, 2026 | $1.57 | $2.25 | +43.31% |
Jan 29, 2026 | $2.28 | $2.00 | -12.43% |
Oct 30, 2025 | $3.33 | $3.00 | -9.92% |
Jul 31, 2025 | $5.03 | $3.90 | -22.42% |
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.
FAQ
When does Xerox (XRX) report earnings?
Xerox (XRX) is schdueled to report earning on Jul 28, 2026, Before Open (Confirmed).
What is Xerox (XRX) earnings time?
Xerox (XRX) earnings time is at Jul 28, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is XRX EPS forecast?
XRX EPS forecast for the fiscal quarter 2026 (Q2) is -0.08.
