Xerox 2025 Q3 Earnings 36.9% Net Loss Reduction and 28.3% Revenue Growth

Xerox (XRX) reported fiscal 2025 Q3 earnings on Nov 11, 2025, delivering a 28.3% year-over-year revenue increase to $1.96 billion and narrowing its net loss by 36.9% to $760 million, outperforming expectations on earnings but falling short on revenue estimates.

Revenue

Xerox’s total revenue surged to $1.96 billion, driven by robust performance across its core segments. Sales revenue reached $993 million, reflecting a significant rebound in product demand, while services, maintenance, rentals, and other segments contributed $968 million, marking a 7.3% year-over-year increase. The geographic breakdown highlighted strong regional performance, particularly in Europe, where revenue rose 16.1% year-over-year to $511 million. Equipment sales saw mixed results, with entry-level units surging 124.5% to $119 million and high-end equipment declining to $39 million versus $52.54 million estimated.

Earnings/Net Income

The company narrowed its net loss to $760 million ($6.01 per share) in Q3 2025, a 36.9% improvement from the $1.21 billion ($9.71 per share) loss in Q3 2024. While the earnings per share (EPS) of $0.20 exceeded the $0.04 consensus estimate by 400%, the revenue shortfall of -4.5% below the $2.05 billion Zacks estimate tempered investor optimism. The reduction in losses underscores operational efficiency gains, though profitability remains a challenge.

Price Action

Following the earnings report, Xerox’s stock edged down 0.99% during the latest trading day but gained 1.01% over the preceding week. However, the stock declined 5.68% month-to-date, reflecting mixed investor sentiment amid mixed earnings performance and broader market headwinds.

Post-Earnings Price Action Review

Investors reacted cautiously to Xerox’s results, with the stock’s intraday dip and weekly rebound indicating divergent interpretations of the earnings data. While the improved net loss and strong services revenue bolstered short-term confidence, the revenue miss and ongoing profitability concerns weighed on the stock’s momentum. The mixed technical indicators suggest a potential consolidation phase ahead, with key support and resistance levels to monitor in the coming weeks.

CEO Commentary

John W. Chen, CEO of Xerox, emphasized the company’s progress in reducing losses and stabilizing core operations. He highlighted strategic initiatives, including cost efficiencies and the integration of Lexmark, as pivotal to long-term recovery.

Additional News

Xerox’s acquisition of Lexmark remains a focal point, with the integration now driving expanded offerings in printing, imaging, and managed print services. This strategic move aims to enhance market share and customer retention. Additionally, the company announced plans to optimize its IT solutions segment, aligning with evolving digital transformation trends. No dividend or buyback announcements were made, with management prioritizing debt reduction and operational stability.

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