Tariffs, losses and Lexmark deal shape Xerox’s turbulent second quarter landscape.
Xerox reported a second-quarter adjusted loss of $0.64 (€0.59) per share as revenues declined slightly to $1.58 billion (€1.45 billion), weighed down by weaker demand in its core print business and tariff-related headwinds. The company’s Print & Other segment fell 8.6% year-on-year to $1.37 billion (€1.26 billion), with equipment and post-sale revenues both retreating sharply.
The company, which acquired Lexmark in July, cited a “soft period” in April and May among government and small business clients. However, June brought a rebound, marking the second-fastest equipment sales month since early 2024.
Tariffs on Chinese imports cost Xerox $30 million– $35 million (€27.6 million– €32.2 million), while integration costs from Lexmark reached up to $75 million (€69 million).
Still, Xerox remains optimistic. Its IT Solutions arm surged 153% in revenue—boosted by the ITsavvy acquisition—and Lexmark is expected to contribute $1bn in annual revenues and $100m in operating income.
“Completing the Lexmark acquisition marks an important milestone in the company’s Reinvention, creating a vertically integrated market leader with a broader, differentiated set of workflow and technology solutions for our clients and partners,” said Steve Bandrowczak, Chief Executive Officer at Xerox.
“Our second quarter reflects the improved resiliency of financial results afforded by Reinvention. Growth in IT and Digital Solutions helped deliver stable revenue, and a focus on costs preserved profitability amid a volatile operating landscape. In the second half of the year, we’re focused on executing Reinvention through the integration of Lexmark, laying the foundation for growth in revenue, adjusted operating income and free cash flow in 2026.”
