Xerox Q4 revenue up 25.7% but misses estimates

Xerox Holdings

29/01/2026 11:41

Overview

Document management firm's Q4 revenue rose 25.7% yr/yr but missed analyst expectations

Adjusted EPS for Q4 missed analyst expectations

Company highlighted successful Lexmark integration, contributing to performance despite challenges

Outlook

Xerox expects 2026 revenue above $7.5 bln

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

Xerox forecasts 2026 free cash flow of approximately $250 mln

Result Drivers

LEXMARK INTEGRATION - Successful integration of Lexmark contributed to Q4 performance, providing synergies and boosting revenue

MACROECONOMIC HEADWINDS - Rising DRAM costs and tariffs increased product costs, impacting IT Solutions and Print business

COST SAVINGS - Cost-saving measures and synergies from Lexmark integration helped mitigate higher tariffs and product costs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$2.03 bln
$2.11 bln (3 Analysts)
Q4 Adjusted EPS
Miss
-$0.10
$0.10 (1 Analyst)

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 $4.00, about 71.7% above its January 28 closing price of $2.33

The stock recently traded at 2 times the next 12-month earnings vs. a P/E of 3 three months ago

Press Release: ID:nBw3wpD2Ya

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.)