Xerox Q1 Revenue Surges 26.7% While IP Venture Raises $450M
XRX•Xerox reported Q1 revenue of $1.846 billion, up 26.7% year-over-year, and adjusted operating income rose $50 million to $72 million, expanding adjusted operating margin by 240 bps to 3.9%. Production installs jumped 31%, IT Solutions bookings grew 32%, and a $450 million IP joint venture was launched alongside a $101 million debt buyback.
1. Quarterly Financial Highlights
Xerox delivered Q1 revenue of $1.846 billion, a 26.7% year-over-year increase, with GAAP gross profit rising to $549 million and adjusted gross profit reaching $560 million. Adjusted operating income climbed to $72 million from $22 million last year, lifting adjusted operating margin by 240 bps to 3.9%, while normalized loss per share stood at $0.11.
2. Operational Milestones
Production installs increased 31% year-over-year, aided by the Proficio launch, and Print sales pipeline expanded materially versus last year. IT Solutions bookings and billings grew by 32% and 21%, respectively, reflecting strong demand for managed services.
3. Segment Breakdown
Print and Other segment revenue rose 30.8% to $1.692 billion, generating $87 million in profit, while IT Solutions revenue declined 4.9% to $156 million but improved profit by 20%. Corporate Other expenses narrowed by 12.5%, driven by lower administrative costs.
4. Reaffirmed Guidance
Management reiterated full-year 2026 targets of over $7.5 billion in revenue, $450–$500 million in adjusted operating income and approximately $250 million in free cash flow, underscoring confidence in stabilizing revenue and reducing leverage.
