Xerox Holdings Corporation reported third‑quarter 2025 results, showing revenue of $1.961 billion, a 28.3% increase from $1.528 billion in the same quarter last year. Adjusted earnings per share were $0.20, down from $0.25 in Q3 2024, while GAAP diluted loss per share was $6.01 versus $9.71.
Print and Other revenue rose 20.6% to $1.739 billion, but profit from the segment fell 37.9% to $64 million. IT Solutions revenue surged 162.8% to $226 million, generating $18 million in profit, driven by the inclusion of acquisitions such as ITsavvy and strong demand for digital services.
The company lowered its full‑year 2025 guidance, reducing revenue growth to 13% from the previously forecast 16‑17%, adjusted operating margin to 3.5% from 4.5%, and free cash flow to $150 million from $250 million. The guidance cut reflects macroeconomic headwinds, slower‑than‑expected price increases, and ongoing integration costs.
Xerox completed its acquisition of Lexmark International for $1.5 billion, including net debt and assumed liabilities, on July 2, 2025. The deal strengthens Xerox’s core print portfolio, expands managed print services, and improves the mix of revenue from growing markets. Management reports that cost‑synergy targets have been raised to at least $300 million.
Pro forma revenue, which includes the impact of the Lexmark acquisition as if it had occurred at the beginning of the comparison period, declined 7.8% in Q3 2025. The metric provides a clearer view of the company’s organic performance and the effect of the acquisition on earnings.
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