Description
Xerox: The A3 Strategy Shift—How Lexmark’s Platform & New OEM Partnerships Could Change the Economics!
Xerox Holdings Corporation reported its financial performance for the third quarter of 2025 amidst challenging macroeconomic conditions. The company’s revenue increased by roughly 28% year-over-year to $1.96 billion, buoyed by the acquisitions of Lexmark and ITsavvy. However, on a pro forma basis, considering these acquisitions, revenue declined by approximately 8%, highlighting the impact of broader economic uncertainties and delayed purchasing decisions. The integration of Lexmark into Xerox’s operations is a critical component of the company’s strategy, with efforts focused on realizing synergies and improving operational efficiency. The integration process has identified an additional $50 million in synergy opportunities, expected to materialize starting in 2026. However, Xerox’s adjusted operating margin fell by 190 basis points year-over-year to 3.3%, reflecting higher tariff charges, increased product costs, and revenue mix challenges.
