Xerox Q2 revenue beats on Lexmark acquisition boost
XRX•Guidance raised for 2026
Xerox raised its full-year 2026 outlook, increasing revenue guidance to approximately $7.6 billion.
The company also lifted its 2026 adjusted operating income forecast to $555 million to $605 million and expects 2026 free cash flow of approximately $250 million.
Drivers behind the quarter
Reported revenue and margin gains were driven by the Lexmark acquisition, although pro forma revenue declined.
Xerox also said a $105 million pre-tax benefit from IEEPA tariff receivables materially boosted profitability. Margin expansion was supported by cost synergies, productivity actions and a unified operating model.
Q2 revenue and earnings beat expectations
Xerox said second-quarter revenue rose 22% year over year, beating analyst expectations, as the Lexmark acquisition boosted results.
The company reported Q2 revenue of $1.92 billion, compared with the consensus estimate of $1.90 billion from three analysts. Adjusted EPS came in at $0.38, ahead of the -$0.14 consensus estimate from two analysts. Reported EPS was $0.07.
