Xerox Holdings Stock Declines 2.8% Since Q2 Earnings Miss

Xerox Holdings XRX reported unimpressive second-quarter 2025 results, wherein both earnings and revenues lagged the Zacks Consensus Estimate.

The narrower-than-expected results failed to impress the market, as the company’s shares have declined 2.8% since the earnings release on July 31.

The company reported a quarterly adjusted loss of 64 cents per share, missing the Zacks Consensus Estimate for earnings of 10 cents, and decreased more than 100% from the year-ago quarter. Revenues of $1.58 billion lagged the consensus estimate by 0.8% and declined 0.13% on a year-over-year basis.

Xerox Holdings Corporation Price, Consensus and EPS Surprise

Xerox Holdings Corporation price-consensus-eps-surprise-chart | Xerox Holdings Corporation Quote

The company’s shares have depreciated 59.5% over the past year compared with the Office Supplies industry’s 42.4% decline and the 20.8% rise of the S&P 500.

Q2 Revenue Details of XRX

Post-sale revenues came in at $1.24 billion, up 1.5% year over year on a reported basis and 0.5% at cc, lagging our estimate of $1.27 billion. Equipment sales declined 5.6% year over year on a reported basis and 6.7% at cc to $336 million, beating our estimate of $330.9 million.

The Print and Other segment’s revenues totaled $1.37 billion, down 8.6% year over year on a reported basis and 9.7% at cc and missing our estimate of $1.46 billion.

Sales revenues amounted to $665 million, up 8.8% year over year on a reported basis and 8.5% at cc. Services, maintenance, rentals and other revenues include financing revenues generated from direct and indirectly financed Xerox equipment sale transactions of $32 million and $38 million for the second quarter of 2025 and 2024, respectively.

XRX’s Operating Performance

Adjusted operating income came in at $59 million, down 30.6% on a year-over-year basis. The adjusted operating margin was 3.7%, down 170 basis points year over year.

XRX’s Key Balance Sheet and Cash Flow Figures

Xerox exited the quarter with a cash and cash equivalent balance of $449 billion compared with $576 million at the end of the December-end quarter of 2024. The company’s net cash used in operating activities and free cash flow for the quarter were down by $134 million and $145 million year over year, resulting in negative cash flow from operating activities and free cash flow of $11 million and $30 million, respectively.

Xerox’s 2025 Guidance

For 2025, Xerox expects 16%-17% revenue growth at constant currency. The adjusted operating margin is projected to be approximately 4.5%. The company anticipates free cash flow to be approximately $250 million.

The operating cash flow for 2025 is expected to be approximately $345 million, and capital expenditures are anticipated to be $95 million.

Xerox’s Zacks Rank

XRX currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Fiserv, Inc. FI reported mixed second-quarter 2025 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same.

FI’s adjusted earnings per share of $2.47 topped the consensus mark by 2.5% and rose 16% year over year. However, adjusted revenues of $5.2 billion missed the consensus estimate by a slight margin but gained 1.7% on a year-over-year basis.

The Interpublic Group of Companies, Inc. IPG reported impressive second-quarter 2025 results. Both earnings and revenues beat the Zacks Consensus Estimate.

IPG’s adjusted earnings of 75 cents per share surpassed the Zacks Consensus Estimate by 36.4% and jumped 23% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2.2 billion beat the consensus estimate by a slight margin but declined 19.8% year over year. Total revenues of $2.5 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2.2 billion.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research