Xerox Holdings Q2 Earnings: Revenue Beats, EPS Misses, and Downward Revised FY25 Outlook

Xerox Holdings reported Q2 non-GAAP EPS of -$0.64, missing estimates by $0.71. Revenue of $1.58B was down 0.1% YoY but beat expectations by $20M. Adjusted operating margin was 3.7%, 170 basis points lower YoY, and operating cash flow was $11 million, a decline of $134 million YoY.

Xerox Holdings Corporation (NASDAQ: XRX) reported its second-quarter 2025 results, revealing a mixed performance that missed EPS estimates but beat revenue expectations. The company's non-GAAP EPS came in at -$0.64, falling short of analysts' expectations by $0.71 [2].

Revenue for the quarter totaled $1.58 billion, representing a 0.1% year-over-year (YoY) decline but beating expectations by $20 million. The adjusted operating margin stood at 3.7%, down 170 basis points from the previous year, while operating cash flow dropped to $11 million, a decrease of $134 million YoY [2].

The company's revenue stability can be attributed to growth in its IT and Digital Solutions segment, which saw a 153.6% increase in revenue compared to the previous year. However, the Print and Other segment experienced a significant decline, with revenue down 8.6% YoY [3].

Xerox also reported a GAAP net loss of $(106) million, or $(0.87) per share, down $124 million or $0.98 per share from the same period last year. Adjusted net loss was $(77) million, or $(0.64) per share, a decrease of $118 million or $0.93 per share YoY [3].

Looking ahead, Xerox has provided revised guidance for the fiscal year 2025, expecting revenue to grow by 16-17% in constant currency, an adjusted operating margin of around 4.5%, and free cash flow of around $250 million. The guidance reflects the inclusion of Lexmark's financial results and incorporates expected tariff-related expenses [2].

The company's stock has seen a 5.3% increase over the past month, with an average analyst price target of $5.25, slightly below the current share price of $5.55 [1].

References:
[1] https://ca.finance.yahoo.com/news/xerox-xrx-reports-q2-everything-030052713.html
[2] https://seekingalpha.com/news/4475243-xerox-holdings-reports-mixed-q2-results-updates-fy25-outlook
[3] https://www.stocktitan.net/news/XRX/xerox-releases-second-quarter-m3n4tg7uelnh.html