Xerox Holdings Corporation


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SKU: XRX Category:


Xerox Holdings Corporation delivered mixed results for the previous quarter, with revenues well below analyst expectations but managed earnings beat. In the third quarter, Xerox grew in adjusted operating income, EPS, and free cash flow despite a 5.7% decline in revenue ($1.65 billion) in actual currency and a 7.4% decline in constant currency. While acknowledging the decline in revenue, Xerox’s management anticipated the outcome, attributing it to stable demand for products and services offset by decreases in specific low-margin post-sale revenue categories. Despite the revenue dip, the company continued to grow operating income and margin due to cost reduction efforts, offsetting cost increases with higher prices and a deliberate focus on high-profit opportunities. They also experienced double-digit growth in service signings, particularly in digital services, signaling a shift from traditional print demand to advanced digital solutions. Looking ahead, Xerox’s management introduced a multiyear strategic transformation plan called Reinvention. This initiative focuses on optimizing geographic operations, streamlining product offerings and pricing models, and achieving organizational and structural simplification to enhance efficiency. Reinvention aims to transition Xerox into a services-led, software-enabled provider with targeted investments in organic and inorganic growth opportunities. By 2026, the plan aims to deliver a minimum $300 million improvement in adjusted operating income, reinstating double-digit operating income margins.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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