Xerox Holdings Corp. (NASDAQ:XRX) shares tumbled sharply on Thursday after the company reported a wider-than-expected loss for the fiscal second quarter of 2025 and significantly lowered its full-year guidance, raising concerns about the pace and impact of its ongoing strategic overhaul.
The document management and technology services provider posted a modest 0.1% year-over-year decline in revenue to $1.58 billion, slightly ahead of the consensus estimate of $1.55 billion. On a constant currency basis, revenue fell 1.1%.
However, the company’s bottom line deeply missed Wall Street expectations, with an adjusted loss per share of 64 cents compared to analysts’ forecast of an 8-cent loss, triggering a steep sell-off in the stock.
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Second-quarter weakness was pronounced in the company’s equipment segment, where sales declined 5.6%. By contrast, post-sale revenue, which includes services, consumables, and financing, edged up 1.5%.
Gross margin contracted by 440 basis points to 28.6%. Equipment gross margin …