Xerox Q3 revenue misses estimates on tariff-related disruptions

Xerox Holdings

30/10/2025 10:46

Overview

Xerox Q3 2025 revenue rises 28.3% but misses analyst expectations

Adjusted EPS for Q3 2025 beats consensus, reflecting operational improvements

Lexmark integration ahead of plan, synergy target raised to at least $300 mln

Outlook

Xerox revises 2025 revenue growth to 13% in constant currency

Company lowers 2025 adjusted operating margin forecast to around 3.5%

Xerox reduces 2025 free cash flow forecast to around $150 mln

Result Drivers

MACROECONOMIC CHALLENGES - Co cites government funding uncertainties and tariff-related disruptions affecting transactional print revenues

IT SOLUTIONS GROWTH - IT Solutions segment shows double-digit growth in bookings, billings, and revenue

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$1.96 bln
$2.03 bln (3 Analysts)
Q3 Adjusted EPS
Beat
$0.20
$0.12 (2 Analysts)
Q3 EPS
-$6.01
Q3 Gross Margin
22.70%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "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 $4.50, about 23.8% above its October 29 closing price of $3.43

The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nBwbjlb90a

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