# Xerox Q3 2026 Earnings Report

> Xerox lowers earnings guidance amid rising costs and market shifts.
- Title: Xerox Q3 2026 Earnings Report · The Motley Fool | Shortify
- Summary: Xerox lowers earnings guidance amid rising costs and market shifts. Xerox reported a 4.5% revenue decline and lowered full-year guidance for operating income…
- Keywords: xerox, q3 2026, earnings call, revenue decline, adjusted operating margin, input costs, equipment mix, it solutions, dividend suspension, debt reduction, finance, money
- Source: The Motley Fool — https://fool.com/earnings/call-transcripts/2026/10/29/xerox-xrx-q3-2026-earnings-call-transcript
- Author: Motley Fool Transcribing
- Published: 2026-10-29T17:53:53+00:00
- Read time: 2 min
- Topics: xerox, q3 2026, earnings call, revenue decline, adjusted operating margin, input costs, equipment mix, it solutions, dividend suspension, debt reduction, finance, money
## Q3 Revenue Decline
Total revenue fell 4.5% to $1.87 billion in constant currency.
## Adjusted Operating Margin
Adjusted operating margin improved to 6.6%, a 330 basis point increase year over year.
## Equipment Revenue Growth
Equipment revenue grew 3% organically, with entry equipment up 21% to $156 million.
## Midrange Equipment Decline
Midrange equipment revenue declined 15.2% to $151 million due to weaker market demand.
## Post-Sale Revenue Drop
Post-sale revenue declined 4.4% to $1.3 billion as service outsourcing and financing income fell.
## IT Solutions Underperformance
IT Solutions revenue dropped 17.3% year over year due to product sales falling 23%.
## GAAP Net Loss
GAAP net loss per share was $7.73, driven by a $959 million goodwill impairment charge.
## Adjusted EPS
Adjusted EPS fell to $0.02 per share due to higher interest expense and a 70% tax rate.
## Guidance Reduction
Adjusted operating income guidance lowered to $450 million to $475 million from $555 million to $605 million.
## Free Cash Flow Guidance
Free cash flow guidance revised to $50 million to $100 million, down from $250 million.
## Input Cost Headwinds
Input costs projected at $60 million for the full year, with memory costs rising from 2% to 10% of machine expenses.
## Tariff Impact
Tariff impact expected at approximately $90 million for 2026, consistent with prior-year levels.
## Lexmark Synergies
Lexmark integration expected to deliver $100 million in incremental year-over-year savings by 2027.
## Debt Reduction
Debt principal reduced by $53 million through exchange of 2028 notes for 2030 notes and equity.
## Dividend Suspension
Common and preferred dividends suspended to preserve $28 million in annual cash for liquidity and debt reduction.
## Total Core Debt
Total core debt reduced to $2.9 billion, excluding $1.3 billion in debt for customer assets.
## Key takeaway

Xerox reported a 4.5% revenue decline and lowered full-year guidance for operating income and free cash flow due to input costs, equipment mix shifts, and IT solutions underperformance.