Xerox Q1 revenue beats, EPS misses

Xerox Holdings

30/04/2026 11:42

Overview

U.S. document management firm's Q1 revenue rose 27%, beating analyst expectations

Adjusted EPS for Q1 missed analyst expectations, with adjusted net loss widening yr/yr

Adjusted operating margin expanded 240 bps, aided by Lexmark acquisition and cost savings

Outlook

Xerox expects 2026 revenue above $7.5 bln in constant currency

Company sees 2026 adjusted operating income of $450-$500 mln

Xerox maintains 2026 free cash flow guidance at about $250 mln

Result Drivers

LEXMARK ACQUISITION - Co said Lexmark acquisition drove revenue and operating margin gains, offsetting declines in legacy Xerox business

COST SAVINGS - Productivity actions and cost reductions from Transformation program contributed to higher adjusted operating margin

DECLINING LEGACY REVENUE - Lower legacy Xerox equipment and post-sale revenue, including managed print services and equipment service revenue, weighed on results

Company press release: ID:nBw532HXRa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$1.85 bln
$1.75 bln (3 Analysts)
Q1 Adjusted EPS
Miss
-$0.43
-$0.27 (3 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and 1 "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 $2.25, about 43.3% above its April 29 closing price of $1.57

The stock recently traded at 2 times the next 12-month earnings vs. a P/E of 2 three months ago

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.)