Xerox Holdings Corporation reported financial results for the third quarter of 2026, revealing a decline in revenue and a significant reduction in profitability metrics compared to the prior year. The company reported total revenue of $1.87 billion for the quarter, a decrease of 4.7% year-over-year.
On the income statement, Xerox recorded a GAAP net loss of $1.015 billion, or $7.73 per share, which was a deterioration of $255 million compared to the same period in 2025. This loss was driven largely by a non-cash goodwill impairment charge of $955 million. Excluding this one-time charge, the company reported an adjusted net income of $7 million, or $0.02 per share, down from $0.20 per share in the prior year.
Despite the net loss, the company reported an adjusted operating income of $124 million, representing an increase of $59 million year-over-year and a margin of 6.6%. The company noted that print equipment revenue grew in both its Entry and Production segments.
Management updated its full-year 2026 guidance, lowering expectations for adjusted operating income and free cash flow. The company now projects full-year revenue of approximately $7.6 billion, adjusted operating income between $450 million and $475 million, and free cash flow between $50 million and $100 million.
In response to these headwinds, Xerox announced it is suspending its common and preferred dividends. The company stated that this decision is intended to preserve cash and reduce leverage while continuing to focus on its strategic priorities.
