Xerox Holdings Shares Plunge 8.07% on Q3 Earnings, Tariff Pressures, Weak Guidance

The share price of Xerox Holdings Corporation (XRX) hit a record low on Nov. 5, with an intraday decline of 8.07%, marking a continuation of its two-day losing streak that has erased 10.84% of its value.

The selloff follows the company’s Q3 FY2025 earnings report, which highlighted mixed performance amid macroeconomic challenges. Print hardware sales were pressured by U.S. tariffs and delayed government spending, while the integration of Lexmark International progressed ahead of schedule, generating $125 million in cost savings. Meanwhile, the IT Solutions segment surged 162.8% year-over-year, driven by cloud and cybersecurity demand, though the overall operating margin contracted to 3.3% as near-term headwinds outweighed cost efficiencies.

Management revised full-year guidance downward, citing ongoing tariff impacts and deferred equipment purchases, with free cash flow projections cut to $150 million. While CEO Steve Bandrowczak emphasized long-term value through integration and cross-sell opportunities, analysts noted the “tale of two motions” between struggling print hardware and robust IT growth. The stock’s near-term outlook remains sensitive to government funding clarity and execution risks in scaling Lexmark synergies, which are critical to restoring margin stability by FY2026.