Xerox Releases Fourth-Quarter and Full-Year Results

Core Insights - Xerox Holdings Corporation reported its fourth-quarter and full-year results for 2025, highlighting better-than-expected operating income and free cash flow performance despite macroeconomic challenges [2][26]. Financial Performance - Fourth-Quarter Results: Revenue reached $2,028 million, a 25.7% increase from $1,613 million in Q4 2024. Gross profit was $579 million, up from $502 million, but gross margin decreased to 28.6% from 31.1% [4][7]. - Full-Year Results: Total revenue for FY 2025 was $7,022 million, a 12.9% increase from $6,221 million in FY 2024. Gross profit was $1,901 million, down from $1,960 million, with a gross margin of 27.1%, down from 31.5% [4][8]. Segment Performance - Fourth-Quarter Segment Results: - Print and Other segment revenue was $1,873 million, a 24.9% increase year-over-year. IT Solutions segment revenue was $158 million, up 38.6% [7]. - Full-Year Segment Results: - Print and Other revenue increased by 7.0% to $6,272 million, while IT Solutions revenue surged 112.6% to $761 million [8]. Strategic Initiatives - The integration of Lexmark is ahead of schedule, with the company reaffirming a synergy target of at least $300 million. The IT Solutions segment saw double-digit growth in bookings, billings, and revenue [5][34]. - The company has onboarded 12 new U.S. dealers in 2025 as part of its channel expansion strategy [5]. Guidance for 2026 - Xerox expects revenue to exceed $7.5 billion, with adjusted operating income projected between $450 million and $500 million, and free cash flow around $250 million [11][32].