Compared to Estimates, Xerox (XRX) Q2 Earnings: A Look at Key Metrics

Core Insights - Xerox Holdings Corporation reported revenue of $1.58 billion for the quarter ended June 2025, a slight decrease of 0.1% year-over-year, with an EPS of -$0.64 compared to $0.29 in the same quarter last year, indicating a significant decline in profitability [1] - The reported revenue fell short of the Zacks Consensus Estimate of $1.59 billion, resulting in a revenue surprise of -0.75%, while the EPS surprise was -740% against a consensus estimate of $0.10 [1] Revenue Breakdown - Equipment sales generated $336 million, slightly above the estimated $333.08 million, but down 5.6% from the previous year [4] - Service, maintenance, and rental revenues totaled $911 million, below the estimated $946.8 million, reflecting a 1.9% decline year-over-year [4] - Post-sale revenue from supplies, paper, and other sales was $176 million, significantly lower than the estimated $268.33 million [4] - Total sales revenue reached $665 million, exceeding the estimated $601.41 million, marking an 8.8% increase compared to the year-ago quarter [4] - Post-sale revenue was reported at $1.24 billion, slightly below the estimated $1.25 billion [4] Equipment Sales Performance - High-end equipment sales were $44 million, below the average estimate of $50.55 million, representing a year-over-year decline of 26.7% [4] - Mid-range equipment sales remained stable at $235 million, matching the average estimate of $219.84 million with no change year-over-year [4] - Entry-level equipment sales were $51 million, below the estimated $53.73 million, reflecting an 8.9% decrease from the previous year [4] - Other equipment sales increased to $6 million, surpassing the average estimate of $5.21 million, showing a year-over-year growth of 20% [4] Stock Performance - Xerox shares have returned -9.2% over the past month, contrasting with the Zacks S&P 500 composite's increase of 2.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]