Xerox Holdings Corporation Sees Inflection Point with Record-Breaking Q1 2026 Results
Xerox Holdings Corporation marked a significant milestone in its financial journey with a stunning first quarter (Q1) 2026 performance. The company's revenue soared to $1.85 billion, representing a nearly 27% increase in actual currency and 24% in constant currency.
The impressive growth was largely attributed to the strategic acquisition of Lexmark, which contributed significantly to Xerox's organic expansion. However, even when excluding the benefits of this acquisition, Q1 performance showcased a notable improvement over the previous quarter, with revenue still growing by 9%. This marked a substantial turnaround from the 9% organic revenue decline witnessed in Q4.
Adjusted operating margin also experienced a remarkable increase, reaching 3.9%, which is up 240 basis points year-over-year on a reported basis and on a pro forma basis. This significant improvement signifies a turning point in Xerox's profit trajectory, underscoring the company's commitment to cost discipline.
In his opening remarks during the Q1 2026 earnings release conference call, Louie Pastor, Chief Executive Officer (CEO), expressed optimism about the future of the business. He acknowledged the challenges faced by the company but emphasized a disciplined and pragmatic approach to addressing them. Pastor committed to transparency and accountability with employees, clients, partners, and investors.
Greg Stein, Senior Vice President and Head of Investor Relations, took the opportunity to introduce Pastor as he begins his tenure in this new capacity. Pastor's appointment as CEO reflects the company's progress over the past two quarters, including structural cost reductions, revenue growth, and key initiatives to strengthen its balance sheet.
The elimination of the President and COO role was also highlighted by Pastor as a deliberate move towards cost discipline, operational efficiency, and speed of execution. His leadership approach emphasizes rolling up sleeves, being deeply embedded in work, and maintaining a clear-eyed focus on what truly drives results.
Xerox's Q1 2026 performance stands as a testament to the company's resilience and determination. The record-breaking revenue and improved adjusted operating margin mark a significant inflection point, paving the way for continued growth and progress under Pastor's leadership."
