Xerox posts Q3 beat but slashes FY26 profit outlook and shares tumble
Xerox Holdings reported third‑quarter 2026 adjusted earnings of $0.02 per share on revenue of $1.87 billion, beating estimates. The company cut its full‑year adjusted operating income forecast to $450 million‑$475 million and free cash flow to $50 million‑$100 million, citing higher input costs and a weaker market. It also announced a debt‑exchange transaction and suspended dividends, sending the stock down roughly 39% in morning trading.
Why it matters
The lower operating‑income and cash‑flow guidance reduces expected earnings for FY2026, pressuring valuation multiples for XRX. The debt‑exchange and dividend suspension signal heightened financial strain, which may affect credit metrics and investor sentiment.
Key facts
- 1Adjusted EPS for Q3 2026 was $0.02 per share (adjusted basis). seekingalpha.com
- 2Q3 2026 revenue was $1.87 billion (reported basis), down 4.6% YoY. seekingalpha.com
- 3FY2026 adjusted operating income guidance was cut to $450 million‑$475 million, from a prior range of $555 million‑$605 million. investing.com
- 4FY2026 free cash flow guidance was cut to $50 million‑$100 million, down from $250 million. investing.com
- 5The company announced a debt‑exchange transaction covering about $174 million of senior notes due 2028, extending maturities to 2030. rttnews.com
- 6Xerox shares fell roughly 39% in morning trading after the results were released. rttnews.com
Summary written by AlphAI AI Desk from 14 of 14 sources. Not investment advice. Figures are as stated by the linked sources.