Xerox Misses Q1 Estimates In Seasonally Lowest Quarter, CEO Cites Macro And Trade Uncertainties

Xerox Holdings Corp (NASDAQ: XRX) reported fiscal first-quarter 2025 results on Thursday, including a quarterly sales decline of 3.0% year-on-year to $1.46 billion, missing the analyst consensus of $1.50 billion. Revenues declined 1.1% at constant currency.

Adjusted EPS loss of $(0.06) missed the analyst consensus estimate of $(0.03). 

Equipment sales decreased by 2.1%, while post-sale revenue declined by 3.2%. 

Also Read: Xerox to Expand Global Print Business with $1.5 Billion Lexmark Buyout

Gross margin declined 30 bps to 29.2%. The equipment margin fell by 310 bps to 27.9%, while the post-sale margin decreased by 50 bps to 29.6%.

The company reported an adjusted operating income of $22 million, compared to $33 million in 2024; the margin declined 70 basis points to 1.5%.

Xerox held $336 million in cash and equivalents as of March 31, 2025. The company used $89 million in operating cash flow for the quarter.

CEO Steve Bandrowczak said that a quarter marked by increasing levels of macroeconomic and trade policy uncertainty, as well as improved sales productivity and the successful integration of IT savvy and other reinvention-enabled operating efficiencies, drove momentum in revenue and a positive adjusted operating income in its seasonally lowest quarter.

FY25 Outlook: The company reiterated a revenue growth of low single-digit growth in constant currency. The company reiterated its free cash flow guidance of $350 million to $400 million.

Xerox maintained an adjusted operating margin outlook of a minimum of 5.0%.

Price Action: XRX stock is up 1.81% at $4.49 premarket at last check on Thursday.

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