Xerox raises 2026 outlook as Lexmark integration boosts second-quarter results

Xerox Inc. reported stronger second-quarter 2026 results, driven by the integration of Lexmark, improved profitability, and ongoing restructuring efforts, prompting the company to raise its full-year revenue and operating income guidance.

Revenue increased 22% year over year to $1.92 billion, although on a pro forma basis that includes Lexmark in the prior-year comparison, revenue declined 6.5%. GAAP net income improved to $13 million, or $0.07 per share, compared with a $106 million loss a year earlier. Adjusted operating income climbed to $203 million, while adjusted operating margin expanded to 10.6%, up from 3.7% in the second quarter of 2025. Operating cash flow reached $37 million and free cash flow totaled $11 million.

CEO Louie Pastor said Xerox made progress on its three strategic priorities of stabilizing revenue, increasing profitability, and reducing debt, citing improved execution and raising synergy targets for the Lexmark acquisition. During the quarter, the company increased its expected Lexmark cost synergies to at least $350 million, launched new A3 and A4 printer platforms under a unified Xerox brand, and reduced outstanding debt by more than $200 million.

The Print and Other segment, which includes Xerox’s core printing and document technologies, generated $1.73 billion in revenue, accounting for 90% of company sales. Equipment revenue increased 15.2%, helped by the Lexmark acquisition, while supplies and post-sale revenue also benefited from the combination. Excluding Lexmark, however, legacy print equipment demand continued to decline.

For 2026, Xerox now expects approximately $7.6 billion in revenue, adjusted operating income of $555 million to $605 million, and free cash flow of about $250 million.