Xerox Raises Revenue Growth View to 16%-17% in Constant Currency

Xerox raises its 2025 revenue growth outlook to 16%-17% in constant currency, up from its previous low single-digit forecast. The company also sees 2025 adjusted operating margin at around 4.5% and free cash flow at approximately $250M.

Xerox Holdings Corporation (NASDAQ: XRX) has revised its 2025 revenue growth outlook to 16%-17% in constant currency, up from its previous low single-digit forecast. The company also expects its 2025 adjusted operating margin to reach around 4.5% and free cash flow to be approximately $250 million [1].

The revised outlook reflects the company's ongoing "Reinvention" strategy, which includes the recent acquisition of Lexmark. The integration of Lexmark is anticipated to create a vertically integrated market leader with a broader set of workflow and technology solutions, driving growth in revenue, adjusted operating income, and free cash flow in 2026 [1].

In the second quarter of 2025, Xerox reported revenue of $1.58 billion, down 0.1% year-over-year, and a GAAP net loss of $(106) million, or $(0.87) per share. The adjusted net loss was $(77) million, or $(0.64) per share, down by $118 million or $0.93 per share year-over-year. The company's adjusted operating margin was 3.7%, down by 170 basis points year-over-year [1].

The revised revenue outlook and guidance reflect expected tariff-related expenses, net of mitigation efforts, modest Lexmark-related synergies, and a slightly more conservative Print equipment demand outlook amid ongoing tariff and government policy-related uncertainty [1].

The company's forward-looking statements are subject to various risks and uncertainties, including market conditions, global macroeconomic conditions, and the successful integration of the Lexmark business [1].

References:
[1] https://investors.xerox.com/news-releases/news-release-details/xerox-releases-second-quarter-results-1