Gross margins have trended downward from a peak of 33.5% in 2023Q4 to 28.1% in 2026Q1, reflecting persistent challenges in maintaining pricing power and operational efficiency.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 7.41B | 7.02B | 6.22B | 6.89B | 7.11B | 7.04B | 7.02B | 9.07B | 9.83B | 10.27B | 10.77B | 18.05B | 19.54B | 21.43B | 22.39B | 21.99B | 21.63B | 15.18B | 17.61B | 16.41B | 15.89B | 15.7B | 15.72B | 15.7B | 15.85B | 17.01B | 18.7B | 19.23B | 19.45B | 18.17B | 17.38B |
| Revenue Growth % | 20% | 12.88% | -9.66% | -3.11% | 0.98% | 0.23% | -22.55% | -7.77% | -4.24% | -4.7% | -40.31% | -7.65% | -8.84% | -4.27% | 1.8% | 1.67% | 42.52% | -13.79% | 7.33% | 3.21% | 1.24% | -0.13% | 0.13% | -0.93% | -6.81% | -9.05% | -2.74% | -1.14% | 7.06% | 4.53% | 4.62% |
| Cost of Goods Sold | 5.51B | 5.12B | 4.26B | 4.57B | 4.79B | 4.63B | 4.58B | 5.42B | 5.9B | 6.2B | 6.51B | 12.78B | 13.29B | 14.79B | 15.16B | 14.97B | 13.94B | 9.15B | 10.45B | 9.96B | 9.13B | 8.9B | 8.99B | 8.75B | 8.73B | 10.05B | 10.15B | 9.29B | 9.04B | 8.36B | 8.01B |
| COGS % of Revenue | - | 72.93% | 68.49% | 66.4% | 67.38% | 65.86% | 65.24% | 59.74% | 60.05% | 60.44% | 60.44% | 70.83% | 68.03% | 68.99% | 67.73% | 68.05% | 64.42% | 60.31% | 59.34% | 60.72% | 57.45% | 56.7% | 57.21% | 55.71% | 55.06% | 59.09% | 54.29% | 48.32% | 46.5% | 46.04% | 46.08% |
| Gross Profit | 1.91B | 1.9B | 1.96B | 2.31B | 2.32B | 2.4B | 2.44B | 3.65B | 3.93B | 4.06B | 4.26B | 5.26B | 6.25B | 6.65B | 7.23B | 7.03B | 7.7B | 6.03B | 7.16B | 6.45B | 6.76B | 6.8B | 6.73B | 6.95B | 7.12B | 6.96B | 8.55B | 9.94B | 10.41B | 9.8B | 9.37B |
| Gross Margin % | 25.7% | 27.07% | 31.51% | 33.6% | 32.62% | 34.14% | 34.76% | 40.26% | 39.95% | 39.56% | 39.56% | 29.17% | 31.97% | 31.01% | 32.27% | 31.95% | 35.58% | 39.69% | 40.66% | 39.28% | 42.55% | 43.3% | 42.79% | 44.29% | 44.94% | 40.91% | 45.71% | 51.69% | 53.5% | 53.96% | 53.92% |
| Gross Profit Growth % | - | -3.01% | -15.3% | -0.17% | -3.54% | -1.56% | -33.12% | -7.05% | -3.3% | -4.69% | -19.04% | -15.74% | -6.05% | -8% | 2.82% | -8.69% | 27.75% | -15.85% | 11.09% | -4.72% | -0.51% | 1.06% | -3.25% | -2.36% | 2.36% | -18.61% | -13.98% | -4.5% | 6.15% | 4.62% | 5.61% |
| Operating Expenses | 1.95B | 1.96B | 1.8B | 1.96B | 2.11B | 2.08B | 2.14B | 2.5B | 2.83B | 3.13B | 3.23B | 4.43B | 4.68B | 5.07B | 5.27B | 5.62B | 6.08B | 4.99B | 5.42B | 5.27B | 4.97B | 5.05B | 5.33B | 5.12B | 5.35B | 5.72B | 7.64B | 7.06B | 7.54B | 7.04B | 6.83B |
| OpEx % of Revenue | - | 27.87% | 28.95% | 28.48% | 29.63% | 29.6% | 30.49% | 27.61% | 28.84% | 30.49% | 29.98% | 24.56% | 23.95% | 23.65% | 23.54% | 25.53% | 28.09% | 32.87% | 30.77% | 32.1% | 31.27% | 32.18% | 33.91% | 32.59% | 33.78% | 33.66% | 40.86% | 36.71% | 38.78% | 38.77% | 39.32% |
| Selling, General & Admin | 1.71B | 1.64B | 1.54B | 1.7B | 1.76B | 1.72B | 1.88B | 2.08B | 2.39B | 2.63B | 2.69B | 3.56B | 3.79B | 4.14B | 4.29B | 4.5B | 4.59B | 4.15B | 4.53B | 4.31B | 4.01B | 4.11B | 4.57B | 4.25B | 4.44B | 4.73B | 5.65B | 5.14B | 5.68B | 5.22B | 6.12B |
| SG&A % of Revenue | - | 23.41% | 24.71% | 24.63% | 24.76% | 24.41% | 26.82% | 23% | 24.31% | 25.63% | 25.02% | 19.72% | 19.39% | 19.3% | 19.15% | 20.45% | 21.24% | 27.33% | 25.75% | 26.28% | 25.22% | 26.18% | 29.08% | 27.06% | 28% | 27.8% | 30.21% | 26.75% | 29.19% | 28.76% | 35.21% |
| Research & Development | 240M | 230M | 191M | 229M | 304M | 310M | 258M | 373M | 397M | 446M | 476M | 563M | 577M | 601M | 655M | 721M | 781M | 840M | 884M | 912M | 922M | 943M | 760M | 868M | 917M | 997M | 1.04B | 979M | 1.04B | 1.08B | 0 |
| R&D % of Revenue | - | 3.28% | 3.07% | 3.33% | 4.28% | 4.4% | 3.67% | 4.11% | 4.04% | 4.34% | 4.42% | 3.12% | 2.95% | 2.8% | 2.93% | 3.28% | 3.61% | 5.53% | 5.02% | 5.56% | 5.8% | 6.01% | 4.83% | 5.53% | 5.79% | 5.86% | 5.58% | 5.09% | 5.36% | 5.94% | - |
| Other Operating Expenses | 0 | 83M | 73M | 36M | 42M | 55M | 0 | 45M | -268M | -141M | -200M | -233M | -232M | -150M | -256M | 398M | 312M | 0 | 0 | 42M | 41M | 0 | 0 | 0 | 0 | 0 | 948M | 935M | 821M | 739M | 715M |
| Operating Income | -41M | -56M | 159M | 353M | 212M | 320M | 300M | 1.39B | 1.09B | 931M | 1.03B | 831M | 1.57B | 1.58B | 1.96B | 1.41B | 1.1B | 1.2B | 1.74B | 1.18B | 1.79B | 1.75B | 1.4B | 1.84B | 1.77B | 1.23B | 908M | 2.88B | 2.86B | 2.76B | 2.54B |
| Operating Margin % | -0.55% | -0.8% | 2.56% | 5.13% | 2.98% | 4.55% | 4.27% | 15.31% | 11.11% | 9.07% | 9.58% | 4.61% | 8.01% | 7.36% | 8.73% | 6.42% | 5.1% | 7.89% | 9.89% | 7.19% | 11.28% | 11.12% | 8.88% | 11.7% | 11.16% | 7.25% | 4.86% | 14.98% | 14.73% | 15.19% | 14.6% |
| Operating Income Growth % | - | -135.22% | -54.96% | 66.51% | -33.75% | 6.67% | -78.39% | 27.11% | 17.29% | -9.79% | 24.19% | -46.93% | -0.76% | -19.28% | 38.46% | 27.9% | -7.77% | -31.29% | 47.75% | -34.24% | 2.69% | 25.07% | -24.01% | 3.9% | 43.39% | 35.79% | -68.47% | 0.56% | 3.77% | 8.79% | 1.85% |
| EBITDA | 330M | 275M | 433M | 604M | 482M | 647M | 672M | 1.82B | 1.62B | 1.45B | 1.59B | 2.02B | 2.99B | 2.94B | 3.26B | 2.66B | 2.2B | 1.9B | 2.41B | 1.83B | 2.43B | 2.38B | 2.08B | 2.58B | 2.8B | 2.56B | 1.86B | 3.81B | 3.69B | 3.5B | 3.25B |
| EBITDA Margin % | 4.45% | 3.92% | 6.96% | 8.77% | 6.78% | 9.19% | 9.57% | 20.11% | 16.51% | 14.16% | 14.81% | 11.2% | 15.31% | 13.7% | 14.54% | 12.11% | 10.17% | 12.48% | 13.69% | 11.18% | 15.28% | 15.18% | 13.24% | 16.46% | 17.69% | 15.08% | 9.92% | 19.84% | 18.95% | 19.26% | 18.71% |
| EBITDA Growth % | -25.51% | -36.49% | -28.31% | 25.31% | -25.5% | -3.72% | -63.14% | 12.32% | 11.62% | -8.84% | -21.08% | -32.45% | 1.91% | -9.83% | 22.27% | 20.99% | 16.15% | -21.4% | 31.39% | -24.45% | 1.93% | 14.46% | -19.46% | -7.78% | 9.28% | 38.2% | -51.35% | 3.53% | 5.32% | 7.6% | 3.21% |
| D&A (Non-Cash Add-back) | 371M | 331M | 274M | 251M | 270M | 327M | 372M | 435M | 531M | 523M | 563M | 1.19B | 1.43B | 1.36B | 1.3B | 1.25B | 1.1B | 698M | 669M | 656M | 636M | 637M | 686M | 748M | 1.03B | 1.33B | 948M | 935M | 821M | 739M | 715M |
| EBIT | -41M | -240M | -1.1B | 40M | -234M | -376M | 346M | 931M | 710M | 689M | 749M | 1.14B | 1.32B | 1.48B | 1.51B | 1.78B | 1.41B | 883M | 183M | 1.18B | 953M | 871M | 1.76B | 1.84B | 1.77B | 1.23B | 936M | 2.24B | 2.9B | 2.76B | 2.54B |
| Net Interest Income | -284M | -234M | -105M | -52M | -80M | -92M | -80M | -89M | -99M | -111M | -176M | -210M | -217M | -229M | -216M | -226M | -573M | 478M | 571M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 15M | 14M | 14M | 16M | 11M | 4M | 14M | 16M | 15M | 8M | 5M | 6M | 9M | 11M | 13M | 632M | 679M | 734M | 833M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 299M | 248M | 119M | 68M | 91M | 96M | 94M | 105M | 114M | 119M | 181M | 216M | 226M | 240M | 229M | 231M | 246M | 527M | 262M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -453M | -432M | -1.38B | -381M | -537M | -792M | -44M | 171M | -496M | -361M | -580M | -222M | -131M | -192M | -254M | -221M | -1.2B | -570M | -699M | 289M | -123M | -26M | -792M | -1.34B | -1.61B | -854M | -1.3B | -187M | -2.29B | -579M | -631M |
| Pretax Income | -494M | -488M | -1.22B | -28M | -325M | -472M | 256M | 822M | 598M | 570M | 568M | 412M | 1.21B | 1.31B | 1.35B | 1.56B | 815M | 627M | -114M | 1.44B | 808M | 830M | 1.12B | 494M | 252M | 376M | -366M | 2.06B | 792M | 2.18B | 1.91B |
| Pretax Margin % | -6.67% | -6.95% | -19.55% | -0.41% | -4.57% | -6.71% | 3.65% | 9.07% | 6.08% | 5.55% | 5.27% | 2.28% | 6.17% | 6.12% | 6.02% | 7.12% | 3.77% | 4.13% | -0.65% | 8.77% | 5.08% | 5.29% | 7.1% | 3.15% | 1.59% | 2.21% | -1.96% | 10.69% | 4.07% | 12% | 10.97% |
| Income Tax | 550M | 541M | 105M | -29M | -3M | -17M | 64M | 179M | 257M | 481M | -62M | -23M | 259M | 276M | 277M | 386M | 256M | 152M | -231M | 400M | -288M | -5M | 340M | 134M | 60M | 485M | -109M | 631M | 207M | 728M | 700M |
| Effective Tax Rate % | -111.34% | -110.86% | -8.63% | 103.57% | 0.92% | 3.6% | 25% | 21.78% | 42.98% | 84.39% | -10.92% | -5.58% | 21.48% | 21.04% | 20.55% | 24.66% | 31.41% | 24.24% | 202.63% | 27.82% | -35.64% | -0.6% | 30.47% | 27.13% | 23.81% | 128.99% | 29.78% | 30.71% | 26.14% | 33.39% | 36.73% |
| Net Income | -1.04B | -1.03B | -1.32B | 1M | -322M | -455M | 192M | 643M | 361M | 195M | 616M | 488M | 969M | 1.16B | 1.2B | 1.29B | 606M | 485M | 230M | 1.14B | 1.21B | 978M | 859M | 360M | 91M | -71M | -257M | 1.42B | 395M | 1.45B | 1.21B |
| Net Margin % | -14.09% | -14.65% | -21.23% | 0.01% | -4.53% | -6.46% | 2.73% | 7.09% | 3.67% | 1.9% | 5.72% | 2.7% | 4.96% | 5.41% | 5.34% | 5.89% | 2.8% | 3.2% | 1.31% | 6.92% | 7.61% | 6.23% | 5.46% | 2.29% | 0.57% | -0.42% | -1.37% | 7.41% | 2.03% | 7.99% | 6.94% |
| Net Income Growth % | 19.57% | 22.1% | -132200% | 100.31% | 29.23% | -336.98% | -70.14% | 78.12% | 85.13% | -68.34% | 26.23% | -49.64% | -16.39% | -3.01% | -7.72% | 113.7% | 24.95% | 110.87% | -79.74% | -6.2% | 23.72% | 13.85% | 138.61% | 295.6% | 228.17% | 72.37% | -118.05% | 260.51% | -72.8% | 20.4% | 355.51% |
| Net Income (Continuing) | -1.04B | -1.03B | -1.32B | 1M | -322M | -455M | 192M | 651M | 341M | 89M | 633M | 840M | 1.05B | 1.04B | 1.06B | 1.31B | 637M | 516M | 117M | 1.14B | 1.12B | 850M | 776M | 360M | 154M | -94M | -273M | 844M | 463M | 1.45B | 1.21B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 702M | 0 | 3M | -1.22B | 0 | 66M | 123M | 11M | -128M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 10M | 15M | 14M | 20M | 20M | 17M | 4M | 7M | 34M | 37M | 38M | 43M | 75M | 119M | 143M | 149M | 153M | 141M | 0 | 103M | 0 | 0 | 0 | 0 | 73M | 73M | 141M | 765M | 124M | 127M | 843M |
| EPS (Diluted) | -8.09 | -8.25 | -10.75 | -0.09 | -2.15 | -2.56 | 0.84 | 2.90 | 1.43 | 0.71 | -1.95 | 1.58 | 3.36 | 3.64 | 3.52 | 3.60 | 1.72 | 2.20 | 1.04 | 4.76 | 4.88 | 3.76 | 3.44 | 1.44 | 0.08 | -0.39 | -1.81 | 7.40 | 1.04 | 4.04 | 6.64 |
| EPS Growth % | 20.97% | 23.26% | -12227.98% | 95.94% | 16.02% | -404.76% | -71.03% | 102.8% | 101.41% | 136.41% | -223.42% | -52.98% | -7.69% | 3.41% | -2.22% | 109.3% | -21.82% | 111.54% | -78.15% | -2.46% | 29.79% | 9.3% | 138.89% | 1700% | 120.51% | 78.45% | -124.46% | 611.54% | -74.26% | -39.16% | 328.97% |
| EPS (Basic) | - | -8.25 | -10.75 | -0.09 | -2.15 | -2.56 | 0.85 | 2.90 | 1.45 | 0.71 | -1.95 | 1.59 | 3.44 | 3.72 | 3.60 | 3.68 | 1.76 | 2.24 | 1.04 | 4.84 | 5.00 | 3.84 | 3.76 | 1.52 | 0.08 | -0.39 | -1.81 | 7.84 | 1.06 | 4.32 | 7.10 |
| Diluted Shares Outstanding | 128.99M | 126.47M | 124.21M | 149.12M | 156.01M | 183.17M | 211.44M | 221.97M | 251.66M | 256.57M | 256M | 269.06M | 292.9M | 318.38M | 332.3M | 360.94M | 337.68M | 219.88M | 223.89M | 233.73M | 242.01M | 244.68M | 228.49M | 200.69M | 225M | 180M | 142.19M | 182.26M | 164.3M | 163.12M | 181.63M |
| Basic Shares Outstanding | 128.99M | 126.47M | 124.21M | 149.12M | 156.01M | 183.17M | 208.98M | 221.97M | 248.71M | 254.34M | 253.39M | 266.13M | 288.59M | 306.37M | 325.51M | 347.02M | 330.86M | 217.49M | 221.37M | 233.73M | 236.2M | 239.58M | 209.04M | 190.13M | 225M | 180M | 142.19M | 170.18M | 164.3M | 163.12M | 169.86M |
| Dividend Payout Ratio | - | - | - | 16500% | - | - | 119.79% | 37.79% | 74.52% | 140.51% | 49.84% | 61.89% | 29.82% | 23.47% | 19.33% | 18.61% | 35.48% | 30.72% | 66.96% | - | - | - | 1.86% | 16.94% | 76.92% | - | - | 41.15% | 134.43% | 33.13% | 36.32% |
Structural revenue decline
According to recent financial disclosures, Xerox experienced a revenue surge to $2.0B in late 2025, yet this growth appears disconnected from long-term demand, as the company previously endured multiple quarters of double-digit year-over-year declines, suggesting that recent top-line expansion may be driven by inorganic acquisitions.
The recent revenue uptick warrants caution, as it follows a prolonged period of contraction that likely reflects the secular decline in office print volumes. Investors should monitor whether these gains are sustainable or merely a temporary byproduct of shifting business models toward lower-margin IT services.
Based on reported income statements, gross margins have trended downward from a peak of 33.5% in 2023Q4 to 28.1% in 2026Q1, indicating that the company is struggling to maintain pricing power amidst rising input costs and a shift in its product mix toward lower-margin service offerings.
The erosion of gross margin suggests that the traditional razor-and-blade model is losing its efficacy as hardware sales face intense competitive pressure. This trend implies that the company may be forced to sacrifice profitability to retain its installed base, further complicating the path to sustainable operating income.
As reported in financial filings, operating margins have frequently dipped into negative territory, reaching -6.9% in 2025Q3, which demonstrates that the company's high fixed-cost structure prevents it from achieving meaningful operating leverage even during periods of revenue growth, highlighting a persistent inefficiency in managing overhead expenses.
The inability to scale operating income suggests that the current cost-cutting initiatives, such as the 2024 workforce reduction, have yet to yield the intended structural benefits. Analysts should investigate whether the company's reliance on legacy infrastructure creates a permanent drag on profitability that cannot be solved by simple headcount adjustments.
Based on the provided data, net income has been consistently negative, punctuated by a massive $1.2B loss in 2024Q3, which indicates that frequent restructuring charges and non-operating impairments are significantly obscuring the underlying operational performance and making normalized earnings analysis difficult for market participants.
The recurring nature of these losses suggests that the company is in a state of perpetual transformation, which may mask deeper issues within the core business. Investors should be wary of relying on headline EPS figures, as they appear heavily distorted by non-recurring items and accounting adjustments.
While management emphasizes a pivot to digital services, the income statement data suggests a company struggling with a shrinking core, as evidenced by the persistent net losses and the inability to maintain gross margins above 30% in recent quarters, raising questions about long-term solvency.
Short-sellers may focus on the company's inability to generate positive net income, which suggests that the 'reinvention' strategy may be failing to offset the decline in legacy print revenue. The reliance on debt-funded operations to sustain a shrinking business model warrants further investigation into the company's long-term liquidity profile.
Quick answers to the most common questions about buying XRX stock.
For fiscal year 2025, Xerox Holdings Corporation (XRX) reported total revenue of $7.02B. This represents a 59.6% decline compared to $17.38B in 1996.
Xerox Holdings Corporation (XRX) reported a net loss of $1.03B for the fiscal year ending 2025.
Xerox Holdings Corporation (XRX) reported an operating income of $-56.0M, resulting in an operating profit margin of -0.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Xerox Holdings Corporation (XRX) generated $1.90B in gross profit for the year, representing a gross profit margin of 27.1%. This demonstrates the company's core pricing power and production efficiency.