Xerox Q2 revenue beats on Lexmark acquisition boost

Xerox Holdings

30/07/2026 11:49

Overview
US document management firm's Q2 revenue rose 22% yr/yr, beating analyst expectations
Company raised full-year 2026 revenue and adjusted operating income guidance
Q2 results benefited from Lexmark acquisition and $105 mln IEEPA tariff receivable gain

Outlook
Xerox raises 2026 revenue guidance to approximately $7.6 bln
Company lifts 2026 adjusted operating income forecast to $555-$605 mln
Xerox expects 2026 free cash flow of approximately $250 mln

Result Drivers
LEXMARK ACQUISITION - Reported revenue and margin gains driven by Lexmark acquisition, though pro forma revenue declined
TARIFF RECEIVABLES - $105 mln pre-tax benefit from IEEPA tariff receivables materially boosted profitability
COST SYNERGIES AND PRODUCTIVITY - Margin expansion supported by cost synergies, productivity actions, and unified operating model

Company press release: ID:nBw5Cvt98a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1.92 bln
$1.90 bln (3 Analysts)
Q2 Adjusted EPS
Beat
$0.38
-$0.14 (2 Analysts)
Q2 EPS
 
$0.07
 

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 $2.75, about 4.2% above its July 29 closing price of $2.64
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 2 three months ago

Reuters Recommended Reads
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July 29 - Unisys Q2 revenue falls on ClearPath license renewals
July 29 - Sonos Q3 profit jumps 52% on IEEPA tariff refunds

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(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.)