Xerox Holdings Corporation · NASDAQ:XRX
Xerox — Q1 2026 Earnings Presentation
33 slides from Xerox's earnings presentation, Apr 30, 2026
Slide 1: Earnings Presentation Q1 2026 Results
Earnings Presentation Q1 2026 Results April 30, 2026
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation and other written or oral statements made from time to time by management contain “forward looking statements” as defined in the Private Securities Litigation Reform Act of 1995 and involve certain risks and uncertainties. The words “anticipate”, “believe
Slide 3: Q1 2026 Key Financial Measures
Q1 2026 Key Financial Measures Revenue ($B) Adjusted1 Operating Margin $1.85 3.9% $1.46 1.5% 2025 2026 2025 2026 2026 % Change: 26.7% @ AC, 23.6% @ CC1; Pro Forma1 (PF) % change: (3.7)% @ AC Free Cash Flow1 ($M) Leverage Framework2 7.0x 6.0x 5.6x 4.5x $(109) $(165) 2025 2026 Q1 2026 Q4 2026E Operati
Slide 4: Strategic Priorities for 2026
Strategic Priorities for 2026 • Grow market share through a more vertically integrated entry-level portfolio, cost-efficient Stabilize and serviceable mid-range, and Production launches in new & adjacent segments Revenue • Leverage improved account coverage and integrated sales engine to accelerate
Slide 5: Financial Results Summary
Financial Results Summary (in millions, except per share data) Q1 Q1 % Chg PF3 % Q1 Q1 PF3 B/(W) P&L Measures 2026 2025 YOY Chg YOY P&L Ratios 2026 2025 YOY Print & Other $1,692 $1,294 Gross Margin – Adj3 30.3% 29.7% (60) bps IT Solutions 156 164 Intersegment elimination1 (2) (1) Revenue 1,846 1,457
Slide 6: Print & Other Segment Results
Print & Other Segment Results PF1 % Chg Total Installs vs Equipment Revenue YOY4 % Chg YOY YOY 30% Q1 Q1 (in millions) AC CC1 AC 2026 2025 10% Equipment 378 284 33.1% 30.7% (2.3)% (10%) Post Sale 1,314 1,010 30.1% 26.5% (3.8)% (30%) 1Q25 2Q25 3Q25 4Q25 1Q26 Total Revenue $1,692 $1,294 30.8% 27.4% (3
Slide 7: Pro Forma Non-GAAP IT Solutions Gross Billings
Pro Forma1 Non-GAAP IT Solutions Gross Billings 1 Pro Pro Forma Forma Non-GAAP Quarterly GrossGross Non-GAAP Billings ($M) ($M) Billings $300 +27% $263 $250 +21% +8% $225 $218 $207 +13% $202 $200 0% $198 $186 $187 $175 $150 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 — 2024 — — 2025 — 2026
Slide 8: IT Solutions Segment Results
IT Solutions Segment Results % Chg YOY IT Solutions: Key Performance Indicators / Trends Q1 Q1 (in millions) AC CC1 • Gross Billings grew 21% YOY in Q1 2026: 2026 2025 Products 105 105 0.0% 0.0% • Double-digit growth in Infrastructure & Networking Services 49 58 (15.5)% (16.8)% equipment and softwar
Slide 9: Cash Flow
Cash Flow (in millions) Q1 2026 Q1 2025 Pre-tax (Loss) (73) (67) 1 Non-Cash Add-Backs 138 100 Restructuring Payments (21) (18) Pension Contributions (36) (34) Working Capital, net 2 (97) (60) 3 Change in Finance Assets 34 98 4 Other (89) (108) Cash used in Operations (144) (89) Cash (used in) provid
Slide 10: Capital Structure
Capital Structure Debt and Cash1 Q1 Principal Debt Maturity Ladder ($M) (in billions) Q1 2026 Q4 2025 $1,177 Total Debt $(4.4) $(4.2) $1,050 1 Less: Cash $0.6 $0.6 $846 $646 $481 Net Debt $(3.8) $(3.6) $172 $606 Less: Financing Allocated Debt $1.4 $1.5 $350 Net Core Debt $(2.4) $(2.1) $674 $569 $250
Slide 11: Debt Details
Debt Details Instrument Principal ($M) Maturity Rate Amortization JV Senior Secured Term Loan $405 Feb-31 S + 812.5 ~$18.2M quarterly starting in Q4 2026 JV Preferred Equity $45 Feb-31 S + 1175 ~$2.0M quarterly starting in Q4 2026 Total JV Secured Debt $450 ABL Revolver - May-28 S + 175 Term Loan B
Slide 12: 2026 Full-Year Guidance
2026 Full-Year Guidance1 STABILIZE REVENUE INCREASE PROFITABILITY REDUCE LEVERAGE Above $7.5B $450–500M ~$250M Revenue Adj.2 Operating Income Free Cash Flow2 KEY ASSUM PTIONS Revenue Adj.2 Operating Income Free Cash Flow2 Expected growth reflects full year of Lexmark, momentum in Expected year-over-
Slide 13: Lexmark Synergies and Implementation Timeline
Lexmark Synergies and Implementation Timeline Expected Phasing of Synergy Realization Cumulative YOY Benefit from In-Year One-time Run-Rate Gross Key Milestones $ in millions Cost Synergies Cash Cost to Achieve Cost Synergies • Initial elimination of duplicative overhead 2025A $146 $35 $69 • Rationa
Slide 14: Frequently Asked Questions
Frequently Asked Questions What drove the CEO transition? How will things change under Louie’s leadership? The appointment of Louie Pastor as Chief Executive Officer reflects the progress made under his leadership, including material structural cost reductions, accelerated integration execution, a g
Slide 15: Appendix
Appendix 15
Slide 16: Operating Trends
Operating Trends 2024 2025 2026 (in millions, except EPS) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Total Revenue $1,502 $1,578 $1,528 $1,613 $6,221 $1,457 $1,576 $1,961 $2,028 $7,022 $1,846 % Change (12.4)% (10.0)% (7.5)% (8.6)% (9.7)% (3.0)% (0.1)% 28.3% 25.7% 12.9% 26.7% CC 1 % Change (13.2)% (9.6)% (7.3)
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures We have reported our financial results in accordance with generally accepted accounting principles (GAAP). In addition, we have discussed our financial results using the non-GAAP measures described below. We believe these non- GAAP measures allow investors to better under
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures • consulting and other similar type professional services as well as potential legal settlements that may arise in connection with those M&A transactions. These costs are considered incremental to our normal operating charges and were incurred or are expected to be incurr
Slide 19: Adjusted Net Income and EPS Reconciliation
Adjusted Net Income (Loss) and EPS Reconciliation FY-24 Q1-25 Q2-25 Q3-25 Q4-25 FY-25 Q1-26 Net Net (Loss) Net Net (Loss) Net Net Net (in millions, except per share amounts) Income EPS (Loss) EPS (Loss) EPS Income EPS (Loss) EPS (Loss) EPS (Loss) EPS Reported (1) $(1,321) $(10.75) $ (90) $ (0.75) $
Slide 20: Adjusted Effective Tax Rate Reconciliation
Adjusted Effective Tax Rate Reconciliation Q1-26 Q1-25 Income Income Tax Pre-Tax Tax Effective Pre-Tax Expense Effective (in millions) Loss Expense Tax Rate Loss (Benefit) Tax Rate (1) Reported $ (73) $ 32 (43.8%) $ (67) $ 23 (34.3%) Income tax on PARC donation - - - (9) Deferred tax asset valuation
Slide 21: Adjusted Gross Profit and Margin Reconciliation
Adjusted Gross Profit and Margin Reconciliation (in millions) FY-24 Q1-25 Q2-25 Q3-25 Q4-25 FY-25 Q1-26 (1) Revenue $ 6,221 $ 1,457 $ 1,576 $ 1,961 $ 2,028 $ 7,022 $ 1,846 (1) Cost of revenue 4,261 1,031 1,125 1,516 1,449 5,121 1,297 Gross Profit and Margin 1,960 31.5% 426 29.2% 451 28.6% 445 22.7%
Slide 22: Adjusted Gross Profit and Margin Reconciliation – Print and Other
Adjusted Gross Profit and Margin Reconciliation – Print and Other (in millions) FY-24 Q1-25 Q2-25 Q3-25 Q4-25 FY-25 Q1-26 (1) Revenue $ 5,864 $ 1,294 $ 1,366 $ 1,739 $ 1,873 $ 6,272 $ 1,692 (1) Cost of revenue 3,960 895 950 1,338 1,331 4,511 1,173 Gross Profit and Margin 1,904 32.5% 399 30.8% 416 30
Slide 23: Adjusted Operating Income and Margin Reconciliation
Adjusted Operating Income and Margin Reconciliation FY-24 Q1-25 Q2-25 Q3-25 Q4-25 FY-25 Q1-26 (Loss) (Loss) (Loss) (Loss) (Loss) (Loss) (Loss) (in millions) Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Profit Reve
Slide 24: Adjusted EBITDA and Margin Reconciliation
Adjusted EBITDA and Margin Reconciliation FY-24 Q1-25 Q2-25 Q3-25 Q4-25 FY-25 Q1-26 (Loss) (Loss) (Loss) (Loss) (Loss) (Loss) (in millions) Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Report
Slide 25: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (in millions) FY-24 Q1-25 Q2-25 Q3-25 Q4-25 FY-25 Q1-26 Net cash provided by (used in) operating activities $511 ($89) ($11) $159 $208 $224 ($144) Less: capital expenditures 44 20 19 28 24 91 21 Free Cash Flow $467 ($109) ($30) $131 $184 $133 ($165) 25
Slide 26: Adjusted Operating Income – Guidance
Adjusted Operating Income – Guidance (in millions) FY 2026 Estimated Pre-tax (loss) ~$(170) Adjustments: Restructuring and related costs, net 70 Amortization of intangible assets 120 Non-financing interest expense 340 (1) Other expenses, net 115 Estimated Adjusted Operating Income (2) ~$450-500 (1)
Slide 27: Free Cash Flow – Guidance
Free Cash Flow – Guidance (in millions) FY 2026 Estimated Net cash provided by operating activites ~$350 Less: capital expenditures 100 Estimated Free Cash Flow ~$250 27
Slide 28: Pro Forma Financial Measures
Pro Forma Financial Measures To better understand the trends in our business, we discuss our 2026 operating results by comparing them against 2025 pro forma results. The 2025 pro forma results include estimated results of Lexmark. Lexmark is included in our 2025 results as of July 1, 2025, the effec
Slide 29: Pro Forma Revenue – Print and Other
Pro Forma Revenue – Print and Other As reported Pro Forma(1) (1) Pro Forma % (in millions) Q1-26 Q1-25 Q1-25 % Change Change Equipment sales $ 378 $ 284 $ 387 33.1% (2.3)% Supplies, paper and other sales 437 168 446 160.1% (2.0)% Service, maintenance, rentals and other 816 763 841 6.9% (3.0)% Xerox
Slide 30: Pro Forma Segment Revenue and Profit
Pro Forma Segment Revenue and Profit As reported Pro Form a(2) Pro Forma (2) % (in m illions) Q1-26 Q1-25 Q1-25 % Change Change Revenue Print & Other $ 1,692 $ 1,294 $ 1,753 30.8% (3.5)% IT Solutions 156 164 164 (4.9)% (4.9)% Intersegment elimination(1) (2) (1) (1) NM NM Total Revenues $ 1,846 $ 1,4
Slide 31: Pro Forma Adjusted Operating Income and Margin Reconciliation
Pro Forma Adjusted Operating Income and Margin Reconciliation As Reported Pro Form a(2) Pro Form a(2) Q1-26 Q1-25 Q1-25 Change Change (Loss) (Loss) (Loss) (in millions) Profit Profit Profit Reported (1) $ (105) $ (90) $ (132) $ (15) $ 27 Income tax expense 32 23 23 9 9 Pre-tax (loss) income $ (73) $
Slide 32: Unaudited Lexmark Historical Financial Results
Unaudited Lexmark Historical Financial Results (3) Q1-24 Q2-24 Q3-24 Q4-24 FY-24 Q1-25 Q2-25 (1) Revenue 541 546 567 593 2,247 511 517 COGS 391 370 386 404 1,550 357 364 Gross Profit 150 177 181 189 697 154 154 Operating Expenses 138 70 124 978 1,311 121 152 Operating Income 12 106 57 (789) (614) 34
Slide 33: © 2026 Xerox Corporation. All rights reserved.
© 2026 Xerox Corporation. All rights reserved. Xerox® is a trademark of Xerox Corporation in the United States and/or other countries.