Xerox cuts 2026 adjusted operating income forecast to $450 million-$475 million
XRX•Xerox cut its 2026 adjusted operating income forecast to $450 million-$475 million from $555 million-$605 million and lowered its free cash flow forecast to $50 million-$100 million from approximately $250 million. It suspended common and preferred dividends, while keeping revenue guidance at approximately $7.6 billion.
1. Forecasts and dividends
Xerox lowered its 2026 adjusted operating income guidance to $450 million-$475 million from $555 million-$605 million and now forecasts free cash flow of $50 million-$100 million, down from approximately $250 million. The company said lower earnings and cash-flow timing contributed to the free cash flow outlook, while revenue guidance remains approximately $7.6 billion despite a weaker print market outlook. Rising memory and oil costs imply a $60 million profit hit; unfavorable equipment mix and weaker IT Solutions also weighed. Xerox suspended common and preferred dividends, preserving approximately $28 million annually, with savings beginning in the first quarter of 2027.
