Xerox Under Pressure from Sluggish FY2025 Printing Demand

Xerox Under Pressure from Sluggish FY2025 Printing Demand

Xerox reported fiscal year 2025 results showing stable headline revenue, supported by acquisitions and resilient print services, while underlying demand for office printing equipment remained weak.

For the full year, Xerox reported revenue of $7.02 billion, as shown in its FY2025 financial summary, reflecting the first full-year contribution from recent acquisitions alongside continued pressure in core printing markets. Fourth-quarter revenue increased to $2.03 billion, driven primarily by acquisition-related growth.

The Print and Other business continued to account for the majority of group revenue. Xerox said demand for office printing hardware remained soft, as customers delayed refresh cycles amid economic uncertainty. Equipment installations declined across multiple product categories, while print volumes and post-sale services proved more resilient, helping to moderate the impact of weaker hardware shipments.

During the fourth quarter, print-related revenue benefited from stable managed print services and renewals in large enterprise and public-sector accounts. Xerox highlighted an ongoing shift in mix toward services and software-enabled workflow solutions, which partially offset pressure from declining equipment sales.

Xerox said integration of Lexmark continued throughout 2025 and progressed in line with expectations. Management noted that organizational alignment, supply chain coordination and portfolio rationalization remained key integration priorities, with the combination expected to strengthen Xerox’s position across A4 and A3 printing and expand its installed base in managed print services.

Looking ahead, Xerox said it remains cautious on macroeconomic conditions but expects printing to remain its core, cash-generative business. For fiscal 2026, the company indicated that performance will depend on stabilizing print demand, realizing integration benefits and maintaining cost discipline in a challenging market environment.

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