Xerox Reports Q3 2026 Results with Lowered Guidance Amidst Market Headwinds
Xerox Holdings Corporation (XRX) reported third-quarter revenue of $1.87 billion, a 4.5% decline in constant currency driven by lower managed print volumes and underperformance in IT Solutions. Despite an improved adjusted operating margin of 6.6% due to cost-saving transformations, the company faced significant financial pressure from a $959 million noncash goodwill impairment charge, resulting in a GAAP net loss of $7.73 per share. The company has lowered its full-year guidance for both adjusted operating income and free cash flow, citing rising input costs—specifically memory components—and a weakening industry outlook for midrange equipment. To preserve liquidity and prioritize debt reduction, Xerox announced the suspension of its dividend. While entry-level equipment revenue saw a 21% increase, these gains were offset by double-digit declines in IT Solutions and midrange installations.
Tickers: $XRX
Topics: Goodwill impairment Guidance downgrade Operating margin improvement Revenue decline
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