Xerox Q3 revenue slightly beats estimates; suspends dividend
XRX•Xerox reported third-quarter revenue of $1.87 billion, slightly above the $1.86 billion consensus, and adjusted EPS of $0.02. It suspended its dividend and cut 2026 adjusted operating income guidance to $450 million-$475 million and free cash flow guidance to $50 million-$100 million.
1. Quarterly results
Xerox's third-quarter revenue fell 4.7% year over year to $1.87 billion, slightly beating analyst expectations of $1.86 billion. Adjusted EPS was $0.02, compared with a loss a year earlier.
2. Dividend and outlook
The company suspended its dividend and cut full-year profit and cash flow guidance amid higher costs. Xerox expects 2026 revenue of about $7.6 billion, adjusted operating income of $450 million-$475 million, down from $555 million-$605 million, and free cash flow of $50 million-$100 million, down from $250 million.
3. Operating factors
Xerox said print equipment sales increased, driven by growth in Entry and High-end categories, and attributed improved adjusted operating margin to integration synergies and cost discipline. It said lower post-sale revenue was partly due to reduced financing revenue.
