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Dec 31, 2025
Xerox Q4 2025 Earnings Report
Xerox Holdings Corporation reported its fourth-quarter and full-year results for 2025, with integration momentum driving Q4 results in line with guidance and adjusted operating income expected to grow more than $200 million in 2026.
Key Takeaways
Xerox Holdings Corporation delivered Q4 2025 results in line with guidance, with revenue reaching $2.03 billion, up 25.7% year-over-year. Despite macroeconomic headwinds, the company saw strong growth in IT Solutions and made significant progress on the Lexmark integration, which is advancing ahead of plan. Adjusted operating income is projected to increase by over $200 million in 2026.
Q4 2025 revenue increased by 25.7% to $2.03 billion, or 23.6% in constant currency.
GAAP net loss for Q4 2025 was $(73) million, or $(0.60) per share, an increased loss of $52 million year-over-year.
Adjusted operating margin for Q4 2025 was 5.0%, down 140 basis points year-over-year.
Lexmark integration is ahead of schedule, with a reaffirmation of at least $300 million in integration synergy target.
Revenue by Segment
Forward Guidance
For 2026, Xerox expects revenue above $7.5 billion, adjusted operating income between $450 million and $500 million, and free cash flow of approximately $250 million.
Positive Outlook
- Revenue expected to be above $7.5 billion.
- Adjusted operating income projected between $450 million and $500 million.
- Free cash flow estimated at approximately $250 million.
- Guidance reflects approximately $335 million of forward flow benefits.
- Lexmark synergy realization ahead of plan; reaffirm at least $300 million integration synergy target.
Challenges Ahead
- Guidance reflects approximately $50 million of revenue headwinds.
- Approximately $40 million of adjusted operating income headwinds from Xerox Financial Services.
- Approximately $290 million of net interest expense.
- Approximately $160 million of pension contributions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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