Xerox Stock Up 26% On Q2 Turnaround, Raised FY26 Outlook

(RTTNews) - Shares of Xerox Holdings Corp. were climbing around 26 percent in the pre-market activity on the Nasdaq, after the office equipment manufacturer on Thursday raised its fiscal 2026 outlook, after reporting a profit in its second quarter, compared to prior year's loss.

Louie Pastor, chief executive officer at Xerox, stated, "Our second-quarter results gave us another reason for confidence. We made progress on each of our three strategic priorities: stabilizing revenue, increasing profitability, and reducing leverage. As a result, we are raising both revenue and adjusted operating income guidance, as well as our Lexmark gross synergy targets."

Looking ahead for fiscal 2026, the company now projects adjusted operating income of $555 million to $605 million and revenues around $7.6 billion.

The company previously expected adjusted operating income of $450 million to $500 million and revenues above $7.5 billion.

In fiscal 2025, adjusted operating income was $248 million and revenues were $7.02 billion.

In the second quarter, net income attributable to shareholders was $10 million, compared to prior year's loss of $109 million. Earnings per share were $0.07, compared to loss of $0.87 a year ago.

The latest results included $105 million of a pre-tax benefit from the recognition of IEEPA tariff receivables.

Adjusted earnings were $55 million or $0.38 per share for the quarter, compared to prior year's loss of $0.64.

Adjusted operating income surged to $203 million from last year's $59 million.

Adjusted operating margin grew 690 basis points to 10.6 percent from 3.7 percent last year.

Revenue climbed 22 percent to $1.92 billion from $1.58 billion last year. Revenues grew 21.2 percent in constant currency, while on a pro forma basis, revenue was down 6.5 percent.

Print and Other revenues climbed 27 percent year-over-year to $1.73 billion, while IT Solutions reveneus dropped 9 percent to $194 million.

On a pro forma basis, Print and Other revenues dropped 6.1 percent.

In pre-market activity on the Nasdaq, the shares were climbing 26.16 percent to trade at $3.3305, after closing Wednesday's regular trading 4 percent lower.

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