Xerox reports $1 billion third-quarter loss, cuts full-year outlook despite printing gains
Register to get 3 free articles
Support the Dead Pixels Society and get access to exclusive content by becoming a subscriber!
Want unlimited access? View Plans
Already have an account? Sign in
Xerox’s Print and Other segment generated $1.69 billion in revenue, declining 2.9%, while segment profit more than doubled to $136 million. Equipment sales increased 2.6% to $393 million, supported by 20.9% growth in entry-level devices and 14.1% growth in high-end equipment. Mid-range equipment sales declined 15.2%.
Adjusted operating income rose to $124 million from $65 million, with margins improving to 6.6%.
CEO Louie Pastor said Xerox was making progress stabilizing revenue and improving profitability but acknowledged intensifying market pressures.
“This quarter, Print equipment revenue grew and adjusted operating margin doubled as we continued to execute against our three priorities: stabilize revenue, increase profitability and reduce leverage,” said Pastor. “We are seeing results in the areas where we have focused our execution, but the headwinds affecting our outlook have intensified, creating greater near-term pressure than we expected. As a result, we are lowering our full-year adjusted operating income and free cash flow guidance. We’re responding with actions and cost measures to mitigate these pressures, improve profitability, and preserve cash, including the suspension of our common and preferred dividends, while maintaining our focus on reducing debt.”
The company lowered its full-year adjusted operating income forecast to $450 million–$475 million and free cash flow guidance to $50 million–$100 million. Xerox also suspended common and preferred dividends to conserve cash while pursuing debt reduction. The company recently announced new production printing devices and a Xeikon partnership targeting packaging and labels.
Xerox Q3 2026 Financial Results
Third quarter ended September 30, 2026 | Figures in US$ millions
Consolidated Financial Results
| Metric | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Revenue | $1,868 | $1,961 | -4.7% |
| Gross profit | $545 | $445 | +22.5% |
| Adjusted operating income | $124 | $65 | +90.8% |
| Adjusted operating margin | 6.6% | 3.3% | +3.3 pts |
| GAAP net loss | ($1,015) | ($760) | $255 worse |
| Free cash flow | $7 | $88 | -$81 |
Divisional Performance
| Division | 2026 Revenue | 2025 Revenue | Change | 2026 Profit |
|---|---|---|---|---|
| Print and Other | $1,688 | $1,739 | -2.9% | $136 |
| IT Solutions | $187 | $226 | -17.3% | $8 |
Divisional Revenue Comparison
US$ millions | Red = 2026, Gray = 2025
Print and Other
2026: $1,688
2025: $1,739
IT Solutions
2026: $187
2025: $226
Bar lengths use the same scale, with $1,739 million representing 100%.
Printing Equipment Sales
| Category | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Entry | $156 | $129 | +20.9% |
| Mid-range | $151 | $178 | -15.2% |
| High-end | $81 | $71 | +14.1% |
| Other | $5 | $5 | 0% |
| Total equipment | $393 | $383 | +2.6% |
Key takeaway: Xerox improved adjusted operating
profitability despite declining revenue. Entry-level and high-end
printing equipment sales increased, while mid-range equipment
and recurring post-sale revenue declined. A $959 million
non-cash goodwill impairment contributed to the reported net loss.
Source: Xerox Holdings Corporation, Q3 2026 Earnings Release,
October 29, 2026. Divisional revenue excludes intersegment
eliminations. Adjusted figures are non-GAAP.
