We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Xerox Holdings Stock Declines 2.6% Since Q3 Earnings Release
Read MoreHide Full Article
Key Takeaways
XRX's Q3 EPS of 20 cents beat estimates by 4% but fell 20% y/y.
Revenues of $1.96 billion missed estimates despite a 28.3% year-over-year increase.
The 2025 outlook was lowered, with weaker margin and cash flow expectations.
Xerox Holdings (XRX - Free Report) 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
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.
Omnicom Group Inc. (OMC - Free Report) 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 - Free Report) 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Xerox Holdings Stock Declines 2.6% Since Q3 Earnings Release
Key Takeaways
Xerox Holdings (XRX - Free Report) 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 - Free Report) 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 - Free Report) 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.