{"id":65929,"date":"2025-07-31T05:28:59","date_gmt":"2025-07-31T12:28:59","guid":{"rendered":"http:\/\/www.enxmag.com\/twii\/?p=65929"},"modified":"2025-07-31T05:29:01","modified_gmt":"2025-07-31T12:29:01","slug":"reinvention-plan-bolsters-xeroxs-second-quarter-results","status":"publish","type":"post","link":"https:\/\/www.enxmag.com\/twii\/news\/2025\/07\/reinvention-plan-bolsters-xeroxs-second-quarter-results\/","title":{"rendered":"Reinvention Plan Bolsters Xerox’s Second Quarter Results"},"content":{"rendered":"\n

Norwalk, CT (July 31, 2025)<\/em> \u2014 Xerox Holdings Corporation (NASDAQ: XRX) today announced its 2025 second-quarter results.<\/p>\n\n\n\n

\u201cCompleting the Lexmark acquisition marks an important milestone in the company\u2019s Reinvention, creating a vertically integrated market leader with a broader, differentiated set of workflow and technology solutions for our clients and partners,\u201d said Steve Bandrowczak, CEO at Xerox. \u201cOur second quarter reflects the improved resiliency of financial results afforded by Reinvention. Growth in IT and digital solutions helped deliver stable revenue, and a focus on costs preserved profitability amid a volatile operating landscape.<\/p>\n\n\n\n

\u201cIn the second half of the year, we\u2019re focused on executing Reinvention through the integration of Lexmark, laying the foundation for growth in revenue, adjusted operating income and free cash flow in 2026.\u201d<\/p>\n\n\n\n

Second-Quarter Key Financial Results<\/strong><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n
\"\"<\/figure>\n\n\n\n

2025 Guidance<\/strong>
\u2022 Revenue: 16-17% growth in constant currency1<\/sup>
\u2022 Adjusted1<\/sup> Operating Margin: around 4.5%
\u2022 Free cash flow1<\/sup>: around $250 million<\/p>\n\n\n\n

Revised guidance includes Lexmark\u2019s financial results beginning July 1 and reflects $30 to 35 million of expected tariff-related expenses, net of mitigation efforts, modest Lexmark-related synergies and a slightly more conservative Print equipment demand outlook amid ongoing tariff and government policy-related uncertainty. Free Cash Flow1<\/sup> guidance includes $60 to $65 million of cash tariff expenses, net of mitigation efforts, and $50 to $75 million of one-time costs associated with the implementation of synergy savings. Tariff impacts included in guidance reflect tariff rates that are proposed to take effect August 1. We continue to expect most tariff expenses to be offset over time through pricing and other mitigation efforts.<\/p>\n\n\n\n

Non-GAAP Measures<\/strong>

This release refers to the following non-GAAP financial measures:
\u2022 Adjusted1<\/sup> Gross Profit and Margin, which exclude the inventory impact related to the exit of certain Production Print manufacturing operations, included in Cost of services, maintenance and rentals.
\u2022 Adjusted1<\/sup> EPS, which excludes Restructuring and related costs, net, Amortization of intangible assets, non-service retirement-related costs, and other discrete adjustments from GAAP EPS, as applicable.
\u2022 Adjusted1<\/sup> operating income and margin, which exclude the EPS adjustments noted above as well as the remainder of Other expenses, net from pre-tax (loss) income and margin.
\u2022 Constant currency (CC)1<\/sup> revenue change, which excludes the effects of currency translation.
\u2022 Free cash flow1<\/sup>, which is operating cash flow less capital expenditures.<\/p>\n\n\n\n

1<\/sup> Refer to the \u201cNon-GAAP Financial Measures\u201d section of this release for a discussion of these non-GAAP measures and their reconciliation to
the reported GAAP measures.<\/p>\n\n\n\n

###<\/p>\n\n\n\n

About Xerox Holdings Corporation (NASDAQ: XRX)<\/strong>
Xerox<\/a> has been redefining the workplace experience for over a century. As a services-led, software-enabled company, we power today\u2019s hybrid workplace through advanced print, digital, and AI-driven technologies. In 2025 Xerox acquired Lexmark – expanding our global footprint, strengthening service capabilities, and equipping us to deliver an even broader portfolio of workplace technologies to our clients. Today, we continue our legacy of innovation to deliver client-centric, digitally driven solutions that meet the needs of a global, distributed workforce. Whether in offices, classrooms, or hospitals, we help our clients thrive in a constantly evolving business landscape.<\/p>\n","protected":false},"excerpt":{"rendered":"

Norwalk, CT (July 31, 2025) \u2014 Xerox Holdings Corporation (NASDAQ: XRX) today announced its 2025 second-quarter results. \u201cCompleting the Lexmark acquisition marks an important milestone in the company\u2019s Reinvention, creating a vertically integrated market leader with a broader, differentiated set of workflow and technology solutions for our clients and partners,\u201d said Steve Bandrowczak, CEO at Xerox. \u201cOur second quarter reflects the improved resiliency of financial results afforded by Reinvention. Growth in IT and digital solutions helped deliver stable revenue, and a focus on costs preserved profitability amid a volatile operating landscape. \u201cIn the second half of the year, we\u2019re focused on executing Reinvention through the integration of Lexmark, laying the foundation for growth in revenue, adjusted operating income and free cash flow in 2026.\u201d Second-Quarter Key Financial Results 2025 Guidance\u2022 Revenue: 16-17% growth in constant currency1\u2022 Adjusted1 Operating Margin: around 4.5%\u2022 Free cash flow1: around $250 million Revised guidance includes Lexmark\u2019s financial results beginning July 1 and reflects $30 to 35 million of expected tariff-related expenses, net of mitigation efforts, modest Lexmark-related synergies and a slightly more conservative Print equipment demand outlook amid ongoing tariff and government policy-related uncertainty. Free Cash Flow1 guidance includes $60 to $65 million of cash tariff expenses, net of mitigation efforts, and $50 to $75 million of one-time costs associated with the implementation of synergy savings. Tariff impacts included in guidance reflect tariff rates that are proposed to take effect August 1. We continue to expect most tariff expenses to be offset over time through pricing and other mitigation efforts. Non-GAAP Measures This release refers to the following non-GAAP financial measures:\u2022 Adjusted1 Gross Profit and Margin, which exclude the inventory impact related to the exit of certain Production Print manufacturing operations, included in Cost of services, maintenance and rentals.\u2022 Adjusted1 EPS, which excludes Restructuring and related costs, net, Amortization of intangible assets, non-service retirement-related costs, and other discrete adjustments from GAAP EPS, as applicable.\u2022 Adjusted1 operating income and margin, which exclude the EPS adjustments noted above as well as the remainder of Other expenses, net from pre-tax (loss) income and margin.\u2022 Constant currency (CC)1 revenue change, which excludes the effects of currency translation.\u2022 Free cash flow1, which is operating cash flow less capital expenditures. 1 Refer to the \u201cNon-GAAP Financial Measures\u201d section of this release for a discussion of these non-GAAP measures and their reconciliation tothe reported GAAP measures. ### About Xerox Holdings Corporation (NASDAQ: XRX)Xerox has been redefining the workplace experience for over a century. As a services-led, software-enabled company, we power today\u2019s hybrid workplace through advanced print, digital, and AI-driven technologies. In 2025 Xerox acquired Lexmark – expanding our global footprint, strengthening service capabilities, and equipping us to deliver an even broader portfolio of workplace technologies to our clients. Today, we continue our legacy of innovation to deliver client-centric, digitally driven solutions that meet the needs of a global, distributed workforce. Whether in offices, classrooms, or hospitals, we help our clients thrive in a constantly evolving business landscape.<\/p>\n","protected":false},"author":66,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[86],"tags":[362],"_links":{"self":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/65929"}],"collection":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=65929"}],"version-history":[{"count":2,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/65929\/revisions"}],"predecessor-version":[{"id":65933,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/65929\/revisions\/65933"}],"wp:attachment":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=65929"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=65929"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=65929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}