Overview

* Xerox Q2 2025 revenue of $1.58 bln beats analyst expectations

* Adjusted EPS of $(0.64) missed analyst estimates, per LSEG data

* Completion of Lexmark acquisition marks a strategic milestone for Xerox

Outlook

* Xerox expects 2025 revenue growth of 16-17% in constant currency

* Company anticipates adjusted operating margin around 4.5% for 2025

* Xerox forecasts 2025 free cash flow of approximately $250 mln

* Company sees tariff-related expenses impacting 2025 results

Result Drivers

* REINVENTION STRATEGY - Xerox attributes revenue stability to growth in IT and Digital Solutions and cost focus amid volatile conditions

* LEXMARK ACQUISITION - Completion of Lexmark acquisition enhances core offerings and synergy opportunities

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $1.58 $1.55

Revenue bln bln (2

Analysts

)

Q2 Miss -$0.64 $0.08 (3

Adjusted Analysts

EPS )

Q2 EPS -$0.87

Q2 Gross 28.6%

Margin

Q2 $59 mln

Adjusted

Operatin

g Income

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "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 ( XRX ) is $10.21, about 48.8% above its July 30 closing price of $5.22

* The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release:

(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.)