Xerox Stock Plunges 40% on the Day It Reported Q3 Results and Cut Full-Year Outlook

Xerox Holdings Corp (Nasdaq: XRX) fell 40.3% on Thursday, closing at $1.67 against a previous close of $2.79, while the S&P 500 ETF (SPY) slipped 0.38%. Volume reached about 11.8 times normal levels. The company released third-quarter results and a debt exchange on the same morning.

In an 8-K filed at 7:52 a.m. ET, Xerox reported third-quarter revenue of $1.87 billion, down 4.7%, and a GAAP net loss of $1.02 billion, or $7.73 per share, including a $959 million pre-tax goodwill impairment. Adjusted operating income rose to $124 million. The company lowered its full-year adjusted operating income guidance to $450 million to $475 million, down from $555 million to $605 million, and its free cash flow guidance to $50 million to $100 million, down from $250 million. It cited higher input costs, a weaker market outlook and lower IT Solutions profit.

Debt exchange and dividend suspension

A second 8-K, accepted at 8:04 a.m. ET, described an exchange of about $174.0 million of 5.500% Senior Notes due 2028 for new 10.250% senior secured first lien notes due 2030 and common stock. Each $1,000 of old notes would receive $690 of new notes and $60 in common stock, based on a discount to the pre-announcement VWAP. The company said the transaction would reduce overall debt principal by about $53 million. Xerox also said it had suspended its common and preferred dividends to preserve cash.

Cash of $412 million at quarter-end

Cash and cash equivalents stood at $412 million at Sept. 30, 2026. Xerox did not attribute the share decline to any single item.