Xerox Q1 revenue up 27% on Lexmark deal; organic sales down 5%, debt jumps $1.1B

Filed May 7, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 12, 2025 · ~1 min read

Key Changes

• high

  Total debt increased $1.1 billion to $4.4 billion, driven by Lexmark acquisition financing and a new $450 million joint venture with TPG that monetizes intellectual property. Non-financing interest expense more than doubled to $84 million.

  MD&A: Liquidity and Capital Resources verify on EDGAR →
• high

  Revenue grew 26.7% to $1.8 billion, but 35-percentage-point contribution from Lexmark masks 5% organic decline in both equipment and post-sale revenue. Managed print services and equipment service revenue continue to contract.

  MD&A: Revenue Analysis verify on EDGAR →
• high

  Adjusted operating margin improved 2.4 points to 3.9%, with 3.0 points from Lexmark. Pro forma margin gained only 0.2 points, reflecting cost savings offset by product cost increases and unfavorable revenue mix.

  MD&A: Operating Income verify on EDGAR →