10-K · March 17, 2026
Xerox completed the Lexmark acquisition in 2025 and reports execution of its multi-year “Reinvention” strategy, achieving cumulative run-rate gross cost savings of more than $500 million through year-end 2025 and…
Earnings analysis · 10-Q
XRX earnings analysis
Filed May 7, 2026 · Our reading of the company's report
The latest report
Xerox's Q1 2026 report demonstrated strong revenue growth bolstered by the Lexmark acquisition and a unified go-to-market strategy. Total revenue increased by 26.7% year-over-year, driven by a 33.1% rise in equipment…
Read full summary
Xerox's Q1 2026 report demonstrated strong revenue growth bolstered by the Lexmark acquisition and a unified go-to-market strategy. Total revenue increased by 26.7% year-over-year, driven by a 33.1% rise in equipment sales, though the net loss widened to $105 million. The company affirmed its focus on achieving ongoing operational improvements amidst external market challenges.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.84
- Segment
- Xerox Financial Services
- Segment
- IT Solutions
- Segment
- Print and Other
What stood out
-
Significant Revenue Growth
Total revenue for Q1 2026 was $1.85 billion, up 26.7% from Q1 2025, driven by the Lexmark acquisition.
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Improved Equipment Sales
Equipment sales rose 33.1% to $378 million, reflecting strong demand and higher installations.
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Operational Margin Improvement
Adjusted operating income margin increased to 3.9%, up 2.4 percentage points from the previous year.
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Positive Cash Flow
Net cash provided by financing activities was $242 million, enabling strategic debt management.
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Strengthened Balance Sheet
Cash and cash equivalents increased to $637 million from $565 million at year-end 2025.
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Strategic Focus on Transformation
Management emphasized benefits from ongoing transformation initiatives, aiming for sustained operational stability.
What to watch
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Widening Net Loss
Net loss grew to $105 million, impacted by increased restructuring and administrative costs.
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High Debt Levels
Total debt reached $4.45 billion, increasing from $4.25 billion, raising concerns over financial leverage.
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Market Volatility Impact
External pressures from increased inflation and foreign currency fluctuations may affect future profitability.
Management's outlook
Operating cash flows are now expected to be approximately $350 million for the year.
Earlier filings 4
10-Q · November 10, 2025
Xerox reported Q3 revenue of $1,961 million (up $433 million vs. Q3 2024's $1,528 million), driven by the Lexmark acquisition and higher sales/services mix, but recorded a net loss of $760 million and diluted loss per…
10-Q · August 7, 2025
Xerox reported Q2 revenues of $1,576 million, essentially flat versus Q2 2024 ($1,578 million) while recording a quarterly net loss of $106 million and diluted loss per share of $(0.87). Gross profit (revenues less cost…
10-Q · May 12, 2025
Xerox reported Q1 revenues of $1,457 million, down $45 million (-3.0%) versus Q1 2024, while net loss narrowed to $90 million from $113 million a year ago and diluted loss per share improved to $(0.75) from $(0.94).…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.