Xerox Holdings Corporation reported a $1.015 billion third-quarter loss after reducing the value of its Print and Other reporting unit, and cut its 2026 earnings and cash-flow targets amid rising costs and a weaker outlook.
The $959 million goodwill impairment was pretax, or $955 million after tax, and was noncash. Xerox Holdings Corporation and Xerox Corporation filed the Oct. 29 Form 8-K with the U.S. Securities and Exchange Commission; the earnings release was furnished as Exhibit 99.1. The quarterly net loss compared with $760 million a year earlier.
Revenue fell 4.7% from a year earlier to $1.868 billion, down from $1.961 billion. Adjusted operating income, a non-GAAP measure, increased to $124 million from $65 million. The adjusted operating margin rose to 6.6% from 3.3%, even as revenue declined and the reported net loss widened.
Xerox lowered its future cash-flow assumptions for the Print and Other reporting unit, citing economic uncertainty and higher memory costs; the revised assumptions reduced the unit’s valuation and led to the impairment. The company also cited higher input costs and a weaker market outlook in lowering its full-year targets.
Xerox now forecasts adjusted operating income of $450 million to $475 million for 2026, down from its previous range of $555 million to $605 million. Its free cash flow forecast fell to $50 million to $100 million from $250 million. The company also pointed to a shift in product mix from Mid-range to Entry products and lower-than-expected IT Solutions profit.
The board suspended Xerox’s common and preferred dividends. CEO Louie Pastor said the dividend halt and additional cost actions were part of the company’s response to mounting pressure and its effort to improve liquidity.
