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Xerox releases first-quarter revenue down 3.7 percent

GaryPageau
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Xerox Corp., Norwalk, Conn, reported first-quarter revenue of $1.85 billion, up 26.7 percent, or 23.6 percent in constant currency. On a pro forma basis, revenue is down 3.7 percent. The GAAP net (loss) of $(105) million, or $(0.84) per share, down $15 million or $0.09 per share, year-over-year, respectively.

“This quarter’s results demonstrated tangible progress as revenue and profit trajectory improved, adjusted1 operating margin expanded, and we further enhanced our liquidity,” said Louie Pastor, chief executive officer at Xerox. “When I took this role, I was unequivocal that we must be clear about our priorities — stabilize revenue, increase profitability, and reduce leverage — and establish credibility by executing on them one quarter at a time. I am genuinely optimistic about the future of this business and confident we are closer to an inflection point than the external narrative suggests. Reaffirming our 2026 guidance reflects that confidence.”

First-Quarter Key Financial Results

B/(W)                          Pro Forma2

(in millions, except per share data)                                  Q1 2026                        Q1 2025                           YOY                   B/(W) YOY

Revenue   $1,846     $1,457        26.7% AC 23.6% CC1     (3.7)% AC
Gross Profit   $549     $426   $123     $(16)
Gross Margin   29.7%     29.2%   50 bps     20 bps
   RD&E %   3.5%     2.9%   (60) bps      
   SAG %   23.3%     25.9%   260 bps      
Pre-Tax (Loss)   $(73)     $(67)   $(6)      
Pre-Tax (Loss) Margin   (4.0)%     (4.6)%   60 bps      
Gross Profit – Adjusted1   $560     $433   $127     $(33)
Gross Margin – Adjusted1   30.3%     29.7%   60 bps     (60) bps
Operating Income – Adjusted1   $72     $22   $50      
Operating Income Margin – Adjusted1   3.9%     1.5%   240 bps      
GAAP Diluted (Loss) per Share $(0.84)          $(0.75)         $(0.09)                        
Normalized Diluted (Loss) Per Share –

Adjusted3

  

$(0.11)

  

$(0.09)

  

$(0.02)

Diluted (Loss) Per Share – Adjusted1                    $(0.43)                   $(0.06)                 $(0.37)                        

 

First-Quarter Segment Results

B/(W)                      Pro Forma2 

(in millions)                                                                                      Q1 2026                Q1 2025                   YOY                         B/(W) YOY

Revenue                  
    Print and Other   $1,692     $1,294  

30.8%

     (3.5)%
    IT Solutions   156     164  

(4.9)%

     (4.9)%
    Intersegment Elimination4   (2)     (1)  

NM

     NM
Total Revenue   $1,846     $1,457  

26.7%

     (3.7)%

 

Profit

    Print and Other   $87     $41       112.2%     (7.4)%
    IT Solutions   6     5       20.0%     20.0%
    Corporate Other 5   (21)     (24)       (12.5)%     (25.0)%

 

Total Profit                                                                                          $72                      $22                      NM                      1.4% 

Written by 

Gary Pageau is principal of InfoCircle LLC, continuing his marketing communications career. InfoCircle LLC is a marketing and communications consulting firm, specializing in business-to-business markets. For nearly 25 years, he was with PMA International, serving most recently as Publisher, Content Development and Strategic Initiatives. His primary responsibilities included overseeing the Association’s editorial department, marketing research unit, education and corporate relations department.