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Xerox Q3 revenue slightly beats estimates; suspends dividend 

By Reuters News


Overview

  • Document management firm's Q3 revenue fell 4.7% but slightly beat analyst expectations

  • Adjusted EPS for Q3 was $0.02, up from a loss last year

  • Company suspended dividend and cut full-year profit and cash flow guidance amid higher costs


Outlook

  • Xerox expects 2026 revenue of about $7.6 bln

  • Company sees 2026 adj operating income at $450-475 mln, down from $555-605 mln

  • Xerox forecasts 2026 free cash flow of $50-100 mln, down from $250 mln


Result Drivers

  • EQUIPMENT SALES GROWTH - Co said print equipment sales increased, driven by growth in Entry and High-end categories, per CEO Louie Pastor

  • COST DISCIPLINE - Co attributed improved adjusted operating margin to integration synergies and cost discipline

  • FINANCING REVENUE DECLINE - Co said lower post sale revenue was partly due to reduced financing revenue


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$1.87 bln

$1.86 bln (4 Analysts)

Q3 Adjusted EPS

Beat

$0.02

-$0.04 (2 Analysts)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and 2 "sell" or "strong sell"

  • The average consensus recommendation for the office equipment peer group is "buy."

  • Wall Street's median 12-month price target for Xerox Holdings Corp is $3.00, about 7.5% above its October 28 closing price of $2.79

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago


Reuters Recommended Reads

  • Oct 28 - Logitech sheds $2 billion in market cap as margin concerns overshadow profit beat


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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