Xerox Holdings Stock Declines 2.6% Since Q3 Earnings Release

Xerox Holdings XRX reported mixed third-quarter 2025 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the mark.

The narrower-than-expected earnings and weak guidance failed to impress the market, as the company’s shares have declined 2.6% since the earnings release on Oct. 30.

For 2025, the adjusted operating margin is projected to be approximately 3.5-4.5%. The mid-point of the guided growth range (4%) is lower than the prior view of 4.5%. The company anticipates free cash flow to be approximately $150-$250 million. The mid-point of the guided range ($200 million) is less than the prior view of $250 million.

The operating cash flow for 2025 is expected to be approximately $245 million, down from the prior view of $345 million.

Xerox expects the fourth-quarter revenue growth range to be 16-17% at constant currency, and capital expenditures are anticipated to be $95 million.

Quarterly adjusted earnings of 20 cents per share surpassed the Zacks Consensus Estimate by 4% and decreased 20% from the year-ago quarter. Revenues of $1.96 billion lagged the consensus estimate by 4.5% and increased 28.3% 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 66.1% over the past year, compared with the Office Supplies industry’s 51.2% decline and the 15.6% rise of the S&P 500.

Q3 Revenue Details of XRX

Post-sale revenues came in at $1.58 billion, up 32.7% year over year on a reported basis and 31.3% at cc, lagging our estimate of $1.72 billion. Equipment sales rose 13% year over year on a reported basis and 12.1% at cc to $383 million, beating our estimate of $338.5 million.

The Print and Other segment’s revenues totaled $1.74 billion, up 20.6% year over year on a reported basis and down 9.8% at cc, beating our estimate of $1.42 billion.

Sales revenues amounted to $993 million, up 68.9% year over year on a reported basis and 67.9% at cc. Services, maintenance, rentals and other revenues included financing revenues generated from direct and indirectly financed Xerox equipment sale transactions of $32 million and $38 million for the third quarter of 2025 and 2024, respectively.

XRX’s Operating Performance

Adjusted operating income came in at $65 million, down 18.8% on a year-over-year basis. The adjusted operating margin was 3.3%, down 1.9 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 $479 million compared with $576 million at the end of the December-end quarter of 2024. The company’s net cash provided by operating activities and free cash flow for the quarter were $159 million and $131 million, respectively.

Xerox’s Zacks Rank

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

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

Earnings Snapshot

Omnicom Group Inc. OMC reported impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

Earnings of $2.15 per share beat the consensus estimate by 4.2% and increased 10.3% year over year. Total revenues of $4.04 billion surpassed the consensus estimate by 0.4% and rose 4% year over year. The increase in the top line was led by a 2.6% jump in revenues from organic growth.

ManpowerGroup, Inc. MAN posted impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

Quarterly adjusted earnings per share came in at 83 cents, which beat the Zacks Consensus Estimate by 1.2% but decreased 35.7% year over year. Total revenues of $4.63 billion surpassed the consensus estimate by 0.6% and rose 2.3% year over year.

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

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