Xerox Q3 revenue misses estimates on tariff-related disruptions

Overview

• Xerox Q3 2025 revenue rises 28.3% but misses analyst expectations

• Adjusted EPS for Q3 2025 beats consensus, reflecting operational improvements

• Lexmark integration ahead of plan, synergy target raised to at least $300 mln

Outlook

• Xerox revises 2025 revenue growth to 13% in constant currency

• Company lowers 2025 adjusted operating margin forecast to around 3.5%

• Xerox reduces 2025 free cash flow forecast to around $150 mln

Result Drivers

• MACROECONOMIC CHALLENGES - Co cites government funding uncertainties and tariff-related disruptions affecting transactional print revenues

• IT SOLUTIONS GROWTH - IT Solutions segment shows double-digit growth in bookings, billings, and revenue

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "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 $4.50, about 23.8% above its October 29 closing price of $3.43

• The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nBwbjlb90a

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(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.)