EarningsQ2 2026 Earnings Report
MX:XRX Q2 2026 EPS Results
Actual EPS$6.90
Consensus EPS-$2.20
Beat/MissBeat by +$9.10
One Year Ago EPS-$11.62
MX:XRX Q2 2026 Revenue Results
Actual Revenue$34.91B
Expected Revenue$34.53B
Beat/MissBeat by +$377.32M
YoY Revenue Growth+21.95%
Earnings Announcement Details
QuarterQ2 2026
Date07/30/2026
TimeBefore Open
Conference CallThursday, July 30, 2026
MX:XRX Upcoming Earnings
Xerox's next earnings date is estimated for October 27, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:XRX Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Neutral
The call presents a balanced picture: management delivered clear progress on margin expansion (boosted by tariff recognition), debt reduction and raised synergy and revenue guidance thanks to Lexmark contributions and operational actions. However, organic (pro forma) revenue declines, mid-range equipment softness, elevated interest expense, input-cost headwinds (memory and oil), and near-term pressure in IT Solutions temper the upside. Reported improvement is partially driven by non-recurring accounting/cash classification items (tariff receivables and their sale), and management acknowledges execution and commodity risks that could impact results if persistent. Overall, tangible improvements in leverage, margins and synergy targets are offset by meaningful organic demand and cost challenges, producing a mixed but constructive outlook.Company Guidance
Reported Revenue Growth (Including Lexmark)
Reported revenue of $1.92 billion, up 22% year-over-year (21% in constant currency) primarily reflecting the inorganic contribution from the Lexmark acquisition.
Raised Full-Year Revenue and Adjusted Operating Income Guidance
Increased 2026 revenue guidance by approximately $100 million to ~ $7.6 billion and raised adjusted operating income outlook to $555M–$605M (up $105 million from prior outlook).
Material Margin Expansion (Reported)
Adjusted operating margin rose to 10.6%, up 690 basis points year-over-year; adjusted gross margin was 36.4%, up ~710 basis points, driven by Lexmark contribution, IEEPA tariff receivable recognition and transformation benefits.
Lexmark Synergies Increased
Raised Lexmark integration synergy target to at least $350 million (up $50 million), with roughly half expected to be realized in 2026 and remainder in 2027–2028.
Debt Reduction and Leverage Improvement
Total debt reduced by $223 million in Q2 (including $125M bridge repayment and $99M face value repurchases), gross/net leverage improved from 7.0x/6.0x to 5.9x/5.1x trailing EBITDA and company expects year-end leverage below 5x gross and 4x net.
Cash Received from Tariff Receivable Monetization
Recognized $105 million of tariff receivables in gross profit and sold the receivable for $80 million cash (buyer discount/OID ~$25M); proceeds immediately used in part to repurchase debt.
Product & Portfolio Progress — Entry and Mid-Range Initiatives
Launched unified Xerox entry color printer/MFP lineup with early entry color installs rising; introduced in-house 9-Series mid-range platform aimed at better economics, supply control and TCO advantage versus prior third-party sourcing.
IT Solutions Billings and Pipeline Momentum
IT Solutions gross billings grew 4% in Q2 and 11% year-to-date; management reports a building pipeline and expects improved conversion and stronger Q4 performance as new sellers ramp.
MX:XRX Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed