Xerox Reports Q3 2025 Results Amid Macroeconomic Headwinds

Xerox Reports Q3 2025 Results Amid Macroeconomic Headwinds

Xerox Holdings Corporation posted third-quarter 2025 revenue of $1.96 billion, up 28% year-over-year as reported, primarily reflecting the July 1 completion of its Lexmark acquisition and the inclusion of ITsavvy. On a pro forma basis, revenue fell 7.8%, showing continued pressure on legacy print demand.

Xerox reiterated its focus on “revenue stabilization and improved profits through reinvention and integration.” Management emphasized strengthening the print core, scaling digital and IT solutions, and leveraging Lexmark’s global channel reach — especially in APAC — to accelerate portfolio growth.

The company noted that while macroeconomic uncertainty has delayed client purchasing decisions, page-volume trends remain steady and supplies usage aligns with expectations, suggesting underlying demand for printed pages remains intact.

The Print & Other business delivered $1.74 billion in revenue, up 21% as reported but down 9.8% on a pro forma basis. Equipment sales rose 13%, helped by Lexmark’s A3 line, while post-sale print services revenue climbed 23%. Segment profit, however, dropped 38% to $64 million, with margins sliding to 3.7% as integration costs and lower pricing weighed on profitability.

The IT Solutions segment — including ITsavvy — saw revenue surge 163% to $226 million, or 12% on a pro forma basis. Product sales doubled and service revenue jumped 84%, driven by cross-selling to Xerox print clients. Segment profit rose sharply to $18 million with margins improving to 8.1%.

Xerox said the Lexmark integration is progressing well. The company uncovered an additional $50 million in synergy opportunities, expected to materialize in 2026. It reaffirmed gross cost-synergy targets of at least $300 million. Initial savings from overlapping overheads and vendor rationalization are already being realized.

Management lowered its 2025 revenue outlook to 13% growth in constant currency, citing delays in government-funded and commercial equipment purchases amid tariff uncertainty and a sluggish macroeconomic recovery.

Despite the short-term caution, Xerox maintained its 2026 outlook, expecting delayed orders to return as economic conditions stabilize. The company anticipates realizing $250–300 million in cost savings next year through Lexmark and Reinvention synergies.

Related:

• Xerox Alleges Fraudulent Lease Scheme Against Premier Copier
• Xerox Announces President & COO Changes
• Xerox Returns to Inkjet Press Market in Partnership with Kyocera
• Xerox Struggles with Q2 Profit Drop Amid Tariffs
• Xerox Completes Acquisition of Lexmark

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