Xerox Holdings Corporation · NASDAQ:XRX
Xerox — Q2 2026 Earnings Presentation
32 slides from Xerox's earnings presentation, Jul 30, 2026
Slide 1: Earnings Presentation Q2 2026 Results
Earnings Presentation Q2 2026 Results July 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: Q2 2026 Key Financial Measures
Q2 2026 Key Financial Measures Revenue ($B) Adjusted1 Operating Margin $1.92 10.6% $1.58 3.7% 2025 2026 2025 20262 2026 % Change: 22.0% @ AC, 21.2% @ CC1; Pro Forma1 (PF) % change: (6.5)% @ AC Free Cash Flow1 ($M) Leverage Framework3 $11 7.0x 6.0x 5.9x 5.1x 5.6x 4.9x 4.5x 3.9x $(30) 2025 2026 Q1 202
Slide 4: Strategic Priorities for 2026
Strategic Priorities for 2026 • Grow market share through a more vertically integrated entry-level portfolio, cost-efficient Stabilize and serviceable mid-range, and Production launches in new & adjacent segments Revenue • Leverage improved account coverage and integrated sales engine to accelerate
Slide 5: Financial Results Summary
Financial Results Summary ($ in millions, except per share data) % Chg PF2 % P&L Measure Q2 2026 Q2 2025 YOY Chg YOY P&L Ratios Q2 2026 Q2 2025 PF2 B/(W) 22% AC / Adj. Gross Revenue $1,922 $1,576 (7)% AC 36.4% 29.3% 610 bps 21% CC2 Margin2 Print & Other 1,733 1,366 RD&E % 3.5% 2.7% IT Solutions 194
Slide 6: Print & Other Segment Results
Print & Other Segment Results PF1 % Chg Total Installs vs Equipment Revenue YOY3 % Chg YOY YOY 10% Q2 Q2 (in millions) AC CC1 AC 2026 2025 (10%) Total Revenue $1,733 $1,366 26.9% 26.0% (6.1)% (30%) 2Q25 3Q25 4Q25 1Q26 2Q26 Equipment 387 336 15.2% 15.0% (13.0)% Equipment Revenue (AC) Total Installs P
Slide 7: Pro Forma Non-GAAP IT Solutions Gross Billings
Pro Forma1 Non-GAAP IT Solutions Gross Billings Pro Forma1 Non-GAAP Gross Billings ($M) $300 +27% $263 $250 +21% +4% +8% $228 $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 — 2024 — — 2025 — — 2026 — Q1'24 Q2'24 Q3'24 Q4'24 FY 20
Slide 8: IT Solutions Segment Results
IT Solutions Segment Results % Chg YOY Key Performance Indicators4 – YTD 2026 Q2 Q2 (in millions) AC CC1 2026 2025 Total Revenue $194 $213 (8.9)% (9.0)% 11% 6% Gross Billings YOY Gross Bookings YOY Products 140 153 (8.5)% (8.8)% Gross Billings Services 49 57 (14.0)% (14.0)% • Double-digit growth in
Slide 9: Cash Flow
Cash Flow (in millions) Q2 2026 Q2 2025 Pre-tax Income (Loss) 31 (60) 1 Non-Cash Add-Backs 131 133 Restructuring Payments (19) (15) Pension Contributions (36) (33) 2 Working Capital, net (79) (119) 3 Change in Finance Assets 56 62 4 Other (47) 21 Cash provided by (used in) Operations 37 (11) Cash us
Slide 10: Capital Structure
Capital Structure Debt and Cash1 Q2 Principal Debt Maturity Ladder ($M) (in billions) Q2 2026 Q1 2026 $1,177 Total Debt $(4.2) $(4.4) $1,050 1 Less: Cash $0.6 $0.6 $752 $646 $481 Net Debt $(3.6) $(3.8) $600 $171 Less: Financing Allocated Debt $1.3 $1.4 $350 Net Core Debt $(2.3) $(2.4) $581 $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 + 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 STABILIZE REVENUE INCREASE PROFITABILITY REDUCE LEVERAGE Approximately $7.6B $555-605M ~$250M Revenue Adj.1 Operating Income Free Cash Flow 1 KEY CHANGES VS INITIAL EXPECTATIONS Up from above $7.5 billion Up from $450-500 million Unchanged ↑ Tariff receivables ↑ Proc
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 equipment sales? The overall demand environment continues to show signs of stabilization, with relative strength in Entry offsetting continued softness in Mid-Range. Total page Demand volumes were down 1% year
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 Total Revenue $6,221 $1,457 $1,576 $1,961 $2,028 $7,022 $1,846 $1,922 % Change (9.7)% (3.0)% (0.1)% 28.3% 25.7% 12.9% 26.7% 22.0% CC 1 % Change (9.5)% (1.1)% (1.1)% 27.0% 23.6% 12.2% 23.6% 21.2% Adj1 Operating Income $
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 Q2-26 Net Net (Loss) Net Net (Loss) Net Net Net Net (in millions, except per share amounts) Income EPS (Loss) EPS (Loss) EPS Income EPS (Loss) EPS (Loss) EPS (Loss) EPS Income EPS (1) Reported $(1,321) $(10.7
Slide 20: Adjusted Effective Tax Rate Reconciliation
Adjusted Effective Tax Rate Reconciliation Q2-26 Q2-25 Income Pre-Tax Income Pre-Tax Tax Effective (Loss) Tax Effective (in millions) Income Expense Tax Rate Income Expense Tax Rate Reported (1) $ 31 $ 18 58.1% $ (60) $ 46 (76.7%) Deferred tax asset valuation allowance - (1) - - Non-GAAP adjustments
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 Q2-26 Revenue (1) $ 6,221 $ 1,457 $ 1,576 $ 1,961 $ 2,028 $ 7,022 $ 1,846 $ 1,922 Cost of revenue (1) 4,261 1,031 1,125 1,516 1,449 5,121 1,297 1,234 (2) Gross Profit and Margin 1,960 31.5% 426 29
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 Q2-26 Revenue (1) $ 5,864 $ 1,294 $ 1,366 $ 1,739 $ 1,873 $ 6,272 $ 1,692 $ 1,733 Cost of revenue (1) 3,960 895 950 1,338 1,331 4,511 1,173 1,080 Gross Profit and Margin (2) 1,90
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 Q2-26 (Loss) (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 Margi
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 Q2-26 (Loss) (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 R
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 Q2-26 Net cash provided by (used in) operating activities $511 ($89) ($11) $159 $208 $224 ($144) $37 Less: capital expenditures 44 20 19 28 24 91 21 26 Free Cash Flow $467 ($109) ($30) $131 $184 $133 ($165) $11 25
Slide 26: Adjusted Operating Income – Guidance
Adjusted Operating Income – Guidance (in millions) FY 2026 Estimated Pre-tax (loss) ~$(100) Adjustments: Restructuring and related costs, net 85 Amortization of intangible assets 120 Non-financing interest expense 375 (1) Other expenses, net 100 Estimated Adjusted Operating Income (2) ~$555-605 (1)
Slide 27: Free Cash Flow – Guidance
Free Cash Flow – Guidance (in millions) FY 2026 Estimated Net cash provided by operating activites ~$340 Less: capital expenditures 90 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 (1) As reported Pro Forma (1) Pro Forma % (in millions) Q2-26 Q2-25 Q2-25 % Change Change Equipment sales $ 387 $ 336 $ 445 15.2% (13.0)% Supplies, paper and other sales 469 176 471 166.5% (0.4)% Service, maintenance, rentals and other 822 785 861 4.7% (4.5)% Xero
Slide 30: Pro Forma Segment Revenue and Profit
Pro Forma Segment Revenue and Profit As reported Pro Form a(3) Pro Forma (3) % (in m illions) Q2-26 Q2-25 Q2-25 % Change Change Revenue Print & Other $ 1,733 $ 1,366 $ 1,846 26.9% (6.1)% IT Solutions 194 213 213 (8.9)% (8.9)% Intersegment elimination(1) (5) (3) (3) NM NM Total Revenues $ 1,922 $ 1,5
Slide 31: Pro Forma Adjusted Operating Income and Margin Reconciliation
Pro Forma Adjusted Operating Income and Margin Reconciliation As Reported Pro Form a(3) Pro Form a(2) Q2-26 Q2-25 Q2-25 Change Change (Loss) (Loss) (Loss) (in millions) Profit Profit Profit Reported (1), (2) $ - $ (106) $ (97) $ 106 $ 97 Income tax expense 31 46 46 (15) (15) Pre-tax income (loss) $
Slide 32: © 2026 Xerox Corporation
© 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