Xerox Reports Strong Earnings Beat Despite Revenue Miss
Xerox reported second-quarter adjusted earnings of $0.38 per share, far exceeding the expected loss of $0.08 per share, which led to a more than 23% surge in its stock price during premarket trading on Thursday. Although revenue came in at $1.92 billion—just below analysts' forecasts—it marked a significant year-over-year increase from $1.576 billion. The company also reported an expanded adjusted operating margin of 10.6%, driven by cost controls and integration benefits from the Lexmark acquisition. Xerox CEO Louie Pastor highlighted progress on strategic priorities, including revenue stabilization, profitability growth, and debt reduction. During the quarter, Xerox reduced total outstanding debt by over $200 million and raised its full-year 2026 guidance for both revenue and adjusted operating income. The company now expects approximately $7.6 billion in annual revenue and between $555 million to $605 million in adjusted operating income.
Tickers: $XRX
Topics: Debt Reduction Earnings Profitability Stock Performance