Xerox Holdings Corporation is trying to turn cost discipline and debt reduction into a more durable earnings recovery even as its core print market keeps shrinking. Project Reinvention had delivered more than $500 million of cumulative run-rate gross cost savings by year-end 2025, and Xerox raised its Lexmark gross cost synergy target to at least $350 million, with half expected in 2026. Second-quarter 2026 adjusted operating margin reached 10.6%, up 690 basis points year over year, while pro forma revenues fell 6.5% and Print and Other revenue declined 6.1% on a pro forma basis. Xerox reduced total debt by $223 million during the second quarter and now expects year-end gross leverage below 5X and net leverage below 4X. The stock trades at 4.59 times forward 12-month earnings per share, compared with 9.73 times for the Zacks sub-industry, and carries a Zacks Rank #3 (Hold).
Xerox CorpCost savings and debt reduction improve earnings outlook.
HP IncRaised synergy target from Lexmark acquisition boosts expected savings.
