Xerox Q3 Revenue Falls 4.7% to $1.87 Billion as Adjusted Operating Income Doubles to $124 Million; Guidance Cut and Dividends Suspended
Xerox Holdings Corporation (NASDAQ: XRX) announced its 2026 third-quarter results. Revenue was $1,868 million, down 4.7% year over year (down 4.5% in constant currency). Gross profit was $545 million and gross margin 29.2%, up 650 basis points.
Adjusted operating income rose to $124 million from $65 million, with the adjusted operating margin doubling to 6.6% from 3.3%. Adjusted diluted EPS was $0.02, versus $0.20 a year earlier. On a GAAP basis, Xerox posted a diluted loss of $7.73 per share, including an after-tax non-cash goodwill impairment charge of $955 million, or $6.87 per diluted share.
By segment, Print and Other revenue fell 2.9% to $1,688 million while segment profit rose 112.5% to $136 million, with double-digit equipment revenue growth in both Entry and Production. IT Solutions revenue fell 17.3% to $187 million.
Xerox lowered its full-year 2026 guidance to revenue of approximately $7.6 billion, adjusted operating income of $450 million to $475 million, and free cash flow of $50 million to $100 million. CEO Louie Pastor said print equipment revenue grew and the adjusted operating margin doubled, but headwinds affecting the outlook have intensified, and the company is responding with cost measures, including the suspension of its common and preferred dividends, while maintaining its focus on reducing debt.
Source: GSM · USA (original Chinese edition)
Photo: 图：Xerox总部大楼（资料图）。DanielPenfield摄，CC BY-SA 3.0，经Wikimedia Commons。 / Xerox headquarters building (file photo). Photo by DanielPenfield, CC BY-SA 3.0, via Wikimedia Commons.
