Xerox Holdings Corporation · NASDAQ:XRX
Xerox — Q3 2026 Earnings Presentation
31 slides from Xerox's earnings presentation, Oct 29, 2026
Slide 1: Earnings Presentation Q3 2026 Results
Earnings Presentation Q3 2026 Results October 29, 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: Q3 2026 Key Financial Measures
Q3 2026 Key Financial Measures Revenue ($B) Adjusted1 Operating Margin $1.96 6.6% $1.87 3.3% 2025 2026 2025 2026 2026 % Change: (4.7)% @ AC, (4.5)% @ CC1 Free Cash Flow1 ($M) Leverage Framework2 7.0x $88 6.0x 5.9x 5.6x 5.4x 5.1x 4.7x 4.7x $7 2025 2026 Q1 2026 Q2 2026 Q3 2026 Q4 2026E Operating Cash
Slide 4: Strategic Priorities for 2026
Strategic Priorities for 2026 • Grow market share through a more vertically integrated entry-level portfolio, cost-efficient Stabilize and serviceable mid-range, and Production launches in new & adjacent segments Revenue • Leverage improved account coverage and integrated sales engine to accelerate
Slide 5: Financial Results Summary
Financial Results Summary ($ in millions, except per share data) P&L Measure Q3 2026 Q3 2025 % Chg YOY P&L Ratios Q3 2026 Q3 2025 B/(W) (4.7)% AC / Revenue $1,868 $1,961 Adj. Gross Margin2 29.5% 28.9% 60 bps (4.5)% CC2 Print & Other 1,688 1,739 RD&E % 3.0% 3.8% IT Solutions 187 226 Intersegment elim
Slide 6: Print & Other Segment Results
Print & Other Segment Results % Chg YOY Total Installs vs Equipment Revenue YOY 10% Q3 Q3 (in millions) AC CC1 2026 2025 (10%) Total Revenue $1,688 $1,739 (2.9)% (2.8)% (30%) 3Q25 4Q25 1Q26 2Q26 3Q26 Equipment 393 383 2.6% 2.9% Equipment Revenue Total Installs Post Sale 1,295 1,356 (4.5)% (4.4)% Q3
Slide 7: Pro Forma Non-GAAP IT Solutions Gross Billings
Pro Forma1 Non-GAAP IT Solutions Gross Billings Pro Forma1 Non-GAAP Gross Billings ($M) $300 +27% $263 $250 +21% +4% (14)% +8% $228 $226 $225 $218 +13% $207 $202 0% $198 $200 $188 $187 $175 $150 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 — 2024 — — 2025 — — 2026 — Q1'24 Q2'24
Slide 8: IT Solutions Segment Results
IT Solutions Segment Results % Chg YOY Key Performance Indicators4 – YTD 2026 Q3 Q3 (in millions) AC CC1 2026 2025 Total Revenue $187 $226 (17.3)% (16.8)% 1% 5% Gross Billings YOY Gross Bookings YOY Products 127 165 (23.0)% (22.4)% Gross Billings Services 53 57 (7.0)% (7.0)% • Double-digit YOY growt
Slide 9: Cash Flow
Cash Flow (in millions) Q3 2026 Q3 2025 Pre-tax (Loss) (1,006) (300) 1 Non-Cash Add-Backs 147 270 Goodwill Impairment Charge 959 - Restructuring Payments (20) (8) Pension Contributions (46) (56) Working Capital, net 2 27 19 Change in Finance Assets3 (30) 90 Other4 (1) 101 Cash provided by Operations
Slide 10: Capital Structure
Capital Structure Debt and Cash1 Q3 Principal Debt Maturity Ladder ($M)3 (in billions) Q3 2026 Q2 2026 $1,177 Total Debt $(4.2) $(4.2) $1,042 1 Less: Cash $0.5 $0.6 $752 $646 Net Debt $(3.7) $(3.6) $481 $600 $171 Less: Financing Allocated Debt $1.3 $1.3 $350 Net Core Debt $(2.4) $(2.3) $250 $157 $58
Slide 11: Debt Details
Debt Details Instrument Principal ($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 + 1187.5 ~$2.0M quarterly starting in Q4 2026 Total JV Secured Debt $450 ABL Revolver - May-28 S + 150 Term Loan
Slide 12: 2026 Updated Full-Year Guidance
2026 Updated Full-Year Guidance1 REVENUE PROFITABILITY LEVERAGE Approximately $7.6B $450-475M $50-100M Revenue Adj.1 Operating Income Free Cash Flow1 KEY CHANGES VS PRIOR EXPECTATIONS Unchanged Down from $555-605 million Down from ~$250 million: ↑ Licensing Income ↓ Adjusted operating income ↓ Highe
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 How is the demand environment trending? What is the outlook for Production equipment sales? Production demand is healthy. In Q3, Production installs and equipment revenue grew 13% and 14% year-over-year, respectively. We delivered that growth Production without any contrib
Slide 15: Appendix
Appendix 15
Slide 16: Operating Trends
Operating Trends 2024 2025 2026 (in millions, except EPS) FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Total Revenue $6,221 $1,457 $1,576 $1,961 $2,028 $7,022 $1,846 $1,922 $1,868 % Change (9.7)% (3.0)% (0.1)% 28.3% 25.7% 12.9% 26.7% 22.0% (4.7)% CC 1 % Change (9.5)% (1.1)% (1.1)% 27.0% 23.6% 12.2% 23.6% 21.2% (4.5)%
Slide 17: Xerox Financial Services (XFS)
Xerox Financial Services (XFS) A capital-light, partner-funded model: Xerox keeps origination and the customer relationship while partners fund the book. Receivable sales accelerate cash realization and reduce the capital needed to support customer financing. Finance receivables, net1 ($B) Key metri
Slide 18: 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 19: 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 20: Adjusted Net Income (Loss) and EPS Reconciliation
Adjusted Net Income (Loss) and EPS Reconciliation FY-24 Q1-25 Q2-25 Q3-25 Q4-25 FY-25 Q1-26 Q2-26 Q3-26 Net Net Net (Loss) Net Net (Loss) Net Net Net Net (Loss) (in millions, except per share amounts) Income EPS (Loss) EPS (Loss) EPS Income EPS (Loss) EPS (Loss) EPS (Loss) EPS Income EPS Income EPS
Slide 21: Adjusted Effective Tax Rate Reconciliation
Adjusted Effective Tax Rate Reconciliation Q3-26 Q3-25 Income Pre-Tax Income Tax (Loss) Tax Effective Pre-Tax Expense Effective (in millions) Income Expense Tax Rate (Loss) (Benefit) Tax Rate (1) Reported $ (1,006) $ 9 (0.9%) $ (300) $ 460 (153.3%) Goodwill impairment 959 4 - - Income tax on PARC do
Slide 22: 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 Q2-26 Q3-26 Revenue (1) $ 6,221 $ 1,457 $ 1,576 $ 1,961 $ 2,028 $ 7,022 $ 1,846 $ 1,922 $ 1,868 Cost of revenue (1) 4,261 1,031 1,125 1,516 1,449 5,121 1,297 1,234 1,323 (2) Gross Profit and Margi
Slide 23: 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 Q2-26 Q3-26 Revenue (1) $ 5,864 $ 1,294 $ 1,366 $ 1,739 $ 1,873 $ 6,272 $ 1,692 $ 1,733 $ 1,688 Cost of revenue (1) 3,960 895 950 1,338 1,331 4,511 1,173 1,080 1,178 Gross Profit
Slide 24: Adjusted Operating Income and Margin Reconciliation
Adjusted Operating Income and Margin Reconciliation FY-24 Q1-25 Q2-25 Q3-25 Q4-25 FY-25 (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 Reported (1) $ (1,321) $
Slide 25: Adjusted Operating Income and Margin Reconciliation – continued
Adjusted Operating Income and Margin Reconciliation – continued Q1-26 Q2-26 Q3-26 (Loss) (Loss) (Loss) Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin (1), (2) Reported $ (105) $ 1,846 $ 13 $ 1,922 $ (1,015) $ 1,868 Income tax expense 32 18 9 Pre-tax (loss) income $ (73) $ 1,846 (4
Slide 26: Adjusted EBITDA and Margin Reconciliation
Adjusted EBITDA and Margin Reconciliation FY-24 Q1-25 Q2-25 Q3-25 Q4-25 FY-25 (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 Reported (1) $ (1,321) $ 6,221 $ (
Slide 27: Adjusted EBITDA and Margin Reconciliation - continued
Adjusted EBITDA and Margin Reconciliation - continued Q1-26 Q2-26 Q3-26 (Loss) (Loss) (Loss) (in millions) Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Reported (1), (2) $ (105) $ 1,846 $ 13 $ 1,922 $ (1,015) $ 1,868 Adjustments: Non-financing interest expense 84 100 93 Other ex
Slide 28: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (in millions) FY-24 Q1-25 Q2-25 Q3-25 Q4-25 FY-25 Q1-26 Q2-26 Q3-26 Net cash provided by (used in) operating activities $511 ($89) ($11) $116 $208 $224 ($144) $37 $30 Less: capital expenditures 44 20 19 28 24 91 21 26 23 Free Cash Flow $467 ($109) ($30) $88 $184 $133 ($
Slide 29: Adjusted Operating Income – Guidance
Adjusted Operating Income – Guidance (in millions) FY 2026 Estimated Pre-tax (loss) ~$(195) Adjustments: Restructuring and related costs, net 90 Amortization of intangible assets 120 Non-financing interest expense 365 (1) Other expenses, net 80 Estimated Adjusted Operating Income (2) ~$450-475 (1) O
Slide 30: Free Cash Flow – Guidance
Free Cash Flow – Guidance (in millions) FY 2026 Estimated Net cash provided by operating activites ~$145-195 Less: capital expenditures 95 Estimated Free Cash Flow ~$50-100 30
Slide 31: © 2026 Xerox Corporation. All rights reserved. Xerox®, the Xerox logo and spark graphic
© 2026 Xerox Corporation. All rights reserved. Xerox®, the Xerox logo and spark graphic are trademarks of XRX Brandco LLC in the United States and/or other countries. 05/26 BR42576