Xerox Reports Q2 Earnings Growth Amid Lexmark Integration
Xerox reported second-quarter revenue of $1.92 billion, a 22% year-over-year increase driven primarily by the acquisition of Lexmark. However, pro forma revenue declined nearly 7%. The company's adjusted operating margin improved to 10.6%, aided by $105 million in tariff receivables and integration synergies from Lexmark. Xerox reduced total debt by $223 million sequentially, bringing gross leverage down to 5.9 times EBITDA. It also repaid bridge notes and bought back discounted debt during the quarter. Management raised its full-year revenue outlook for 2026 to approximately $7.6 billion and adjusted operating-income guidance to between $555 million and $605 million. CEO Louie Pastor emphasized that Xerox is focused on addressing three key priorities: managing upcoming debt maturities in 2028, 2029, and 2030. The company faces near-term challenges from equipment supply constraints and IT Solutions sales-force investments.
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