Shares of Xerox Holdings Corp. were climbing around 26 percent in the pre-market activity on the Nasdaq, after the office equipment manufacturer on Thursday raised its fiscal 2026 outlook, after reporting a profit in its second quarter, compared to prior year's loss.
Louie Pastor, chief executive officer at Xerox, stated, "Our second-quarter results gave us another reason for confidence. We made progress on each of our three strategic priorities: stabilizing revenue, increasing profitability, and reducing leverage. As a result, we are raising both revenue and adjusted operating income guidance, as well as our Lexmark gross synergy targets."
Looking ahead for fiscal 2026, the company now projects adjusted operating income of $555 million to $605 million and revenues around $7.6 billion.
The company previously expected adjusted operating income of $450 million to $500 million and revenues above $7.5 billion.
In fiscal 2025, adjusted operating income was $248 million and revenues were $7.02 billion.
In the second quarter, net income attributable to shareholders was $10 million, compared to prior year's loss of $109 million. Earnings per share were $0.07, compared to loss of $0.87 a year ago.
The latest results included $105 million of a pre-tax benefit from the recognition of IEEPA tariff receivables.
Adjusted earnings were $55 million or $0.38 per share for the quarter, compared to prior year's loss of $0.64.
Adjusted operating income surged to $203 million from last year's $59 million.
Adjusted operating margin grew 690 basis points to 10.6 percent from 3.7 percent last year.
Revenue climbed 22 percent to $1.92 billion from $1.58 billion last year. Revenues grew 21.2 percent in constant currency, while on a pro forma basis, revenue was down 6.5 percent.
Print and Other revenues climbed 27 percent year-over-year to $1.73 billion, while IT Solutions reveneus dropped 9 percent to $194 million.
On a pro forma basis, Print and Other revenues dropped 6.1 percent.
In pre-market activity on the Nasdaq, the shares were climbing 26.16 percent to trade at $3.3305, after closing Wednesday's regular trading 4 percent lower.
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Business News
September 11, 2026 16:26 ET Consumer prices data was the main news on the economic front in the U.S. this week. In Europe, the latest interest rate decision from the European Central Bank was the focus along with the revised second quarter economic growth data for the euro area. In Asia, the monthly foreign trade data from China drew attention.