Quarterly ResultApr 30, 2026, 06:47 AM
XRX Q1 Revenue $1.85B (+26.7%); Adj. Operating Margin 3.9% (+240bps)
AI Summary
Xerox Holdings Corporation reported Q1 2026 revenue of $1.85 billion, a 26.7% increase (23.6% constant currency) year-over-year, though down 3.7% on a pro forma basis. The company achieved adjusted operating income of $72 million, with adjusted operating margin expanding by 240 basis points to 3.9%. GAAP net loss was $(105) million, or $(0.84) per share. CEO Louie Pastor highlighted tangible progress in revenue and profit trajectory, expanded adjusted operating margin, and enhanced liquidity, reaffirming full-year 2026 guidance. Strategic milestones included Lexmark synergies on plan, a $450 million IP joint venture, and increased production installs.
Key Highlights
- Raised $450 million through a newly formed IP joint venture with TPG Angelo Gordon.
- Repurchased $101 million face value of 2028 Senior Notes.
- Q1 2026 Revenue $1.85 billion, up 26.7% (23.6% CC) YoY; down 3.7% pro forma.
- GAAP Net Loss $(105) million, or $(0.84) per share, down $15 million YoY.
- Adjusted Operating Income $72 million, up $50 million YoY; margin 3.9% (+240 bps).
- Print and Other segment revenue $1.69 billion, up 30.8% YoY.
- IT Solutions segment revenue $156 million, down 4.9% YoY.
- Reaffirmed full-year 2026 guidance: revenue above $7.5 billion, adjusted operating income $450-$500 million, free cash flow ~$250 million.