By Andy Slawetsky – Xerox Holdings Corporation has released its Q2 2023 results, reporting a revenue of $1.75 billion, up by 0.4 percent. The company also reported an adjusted earnings per share (EPS) of $0.44, marking an increase of $0.31 year-over-year. Despite this, the GAAP EPS decreased to $(0.41), down by $0.36 from the previous year.

Xerox’s Q2 results also showcased an adjusted operating margin of 6.1 percent, a significant increase from last year. The company reported an operating cash flow of $95 million and free cash flow of $88 million, showing marked growth from the previous year. In light of these results, Xerox is revising its guidance for the adjusted operating margin to a range of 5.5% to 6.0% and increasing its free cash flow to at least $600 million.

The company’s improved performance is due to a resilient demand and a balanced execution strategy, focusing on client success and productivity challenges in today’s hybrid workplace.

Additionally, Xerox has transferred the management and oversight of the equipment on operating leases portion of its financing business from the FITTLE segment to the marketing and sales groups in the Print and Other segment. The company has also donated its Palo Alto Research Center (PARC) to Stanford Research Institute International (SRI) to focus on its core business and growth in its business technology solutions. This resulted in a net pre-tax charge of $132 million in the second quarter.

Finally, the company’s 2023 guidance anticipates revenue to remain flat or slightly down in constant currency, with an adjusted operating margin of 5.5% to 6.0% and a free cash flow of at least $600 million.

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SOURCE Xerox