Xerox reports revenue down 7.5 percent in third quarter

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Xerox Holdings Corp. announced third-quarter revenue of $1.53 billion, down 7.5 percent, or 7.3 percent in constant currency. GAAP net (loss) of $(1.2) billion, or $(9.71) per share, a decrease of $1.3 billion or $9.99 per share, year-over-year, respectively. Xerox also reported adjusted net income of $34 million, down $43 million, year-over-year, respectively.

“Q3 results demonstrate no single quarter or performance metric in isolation defines our Reinvention,” said Steve Bandrowczak, chief executive officer at Xerox. “Operational improvements and enterprise-wide efficiencies are driving services signings momentum, improved decision-making and a sustainably lower cost base. These gains give us confidence Reinvention will enable long-term profitable growth as we continue this multi-year journey.

“While equipment revenue fell short of expectations, we continue to see steady progress from Reinvention initiatives taken to date. Adjusted operating income and margin grew year-over-year, and the pending acquisition of ITsavvy will improve Xerox’s value proposition with clients, as well as the mix of revenue from growing businesses.

Third-Quarter Key Financial Results

(in millions, except per share data)

Q3 2024

Q3 2023

B/(W)

YOY

% Change

B/(W) YOY

Revenue

$1,528

$1,652

$(124)

(7.5)% AC (7.3)% CC1

Gross Margin

32.4%

32.4%

RD&E %

2.9%

3.1%

20 bps

SAG %

24.2%

25.2%

100 bps

Pre-Tax (Loss) Income2

$(1,087)

$64

$(1,151)

NM

Pre-Tax (Loss) Income Margin2

(71.1)%

3.9%

NM

Operating Income – Adjusted1

$80

$68

$12

17.6%

Operating Income Margin – Adjusted1

5.2%

4.1%

110 bps

GAAP Diluted (Loss) Earnings per Share2

$(9.71)

$0.28

$(9.99)

NM

Diluted Earnings Per Share – Adjusted1

$0.25

$0.46

$(0.21)

(45.7)%

Third-Quarter Segment Results

(in millions)

Q3 2024

Q3 2023

B/(W)
YOY

% Change
B/(W) YOY

Revenue

Print and Other

$1,457

$1,575

$(118)

(7.5)%

XFS

88

98

(10)

(10.2)%

Intersegment Elimination3

(17)

(21)

4

(19.0)%

Total Revenue

$1,528

$1,652

$(124)

(7.5)%

Profit

Print and Other

$67

$64

$3

4.7%

XFS

13

4

9

225.0%

Total Profit

$80

$68

$12

17.6%