Xerox Q2 revenue beats expectations

Xerox Holdings

31/07/2025 11:42

Overview

Xerox Q2 2025 revenue of $1.58 bln beats analyst expectations

Adjusted EPS of $(0.64) missed analyst estimates, per LSEG data

Completion of Lexmark acquisition marks a strategic milestone for Xerox

Outlook

Xerox expects 2025 revenue growth of 16-17% in constant currency

Company anticipates adjusted operating margin around 4.5% for 2025

Xerox forecasts 2025 free cash flow of approximately $250 mln

Company sees tariff-related expenses impacting 2025 results

Result Drivers

REINVENTION STRATEGY - Xerox attributes revenue stability to growth in IT and Digital Solutions and cost focus amid volatile conditions

LEXMARK ACQUISITION - Completion of Lexmark acquisition enhances core offerings and synergy opportunities

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1.58 bln
$1.55 bln (2 Analysts)
Q2 Adjusted EPS
Miss
-$0.64
$0.08 (3 Analysts)
Q2 EPS
-$0.87
Q2 Gross Margin
28.6%
Q2 Adjusted Operating Income
$59 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "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 $10.21, about 48.8% above its July 30 closing price of $5.22

The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release: ID:nBw2k8D7Za

(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.)