Xerox releases Q3 2026 Results

Louie Pastor, chief executive officer at Xerox, commenting on Xerox Q3 2026 results said:

“This quarter, Print equipment revenue grew and adjusted operating margin doubled as we continued to execute against our three priorities: stabilize revenue, increase profitability and reduce leverage. We are seeing results in the areas where we have focused our execution, but the headwinds affecting our outlook have intensified, creating greater near-term pressure than we expected. As a result, we are lowering our full-year adjusted operating income and free cash flow guidance. We’re responding with actions and cost measures to mitigate these pressures, improve profitability, and preserve cash, including the suspension of our common and preferred dividends, while maintaining our focus on reducing debt.”

Assessing Xerox performance by a Quarter of performance, with or without factoring in the Lexmark effect, is not a good measure to predict current or future company performance.

Financial Summary Q3 2026 (GAAP unless otherwise stated)

Revenue down 4.5 percent in constant currency.
Adjusted operating income of US$124 million, up US$59 million year-over-year.
Adjusted operating margin of 6.6 percent, up 330 basis points year-over-year.
Operating cash flow of US$30 million, down US$86 million year-over year.

Progress Against Strategic Priorities Q3 2026

Double-digit equipment revenue growth in both Entry and Production
Announced three new Production devices at PRINTING United Expo, as well as a partnership with Xeikon to enter the Packaging and Labels market
$8 million non-cash debt reduction through Xerox warrant program, retiring 2030 convertible notes
Announced Exchange of $174 million in 5.50% 2028 Senior Notes for: US$121 million of 10.25% 2030 Senior Secured Notes and US$9 million in equity