How Xerox Can Turn the Tide in 2026
Recently, Xerox officially announced its fourth-quarter and full-year results for 2025. Although the full-year net loss narrowed from $1.32 billion in 2024 to over $1 billion, the company still failed to escape the loss situation. At the same time, CEO Steve Bandrowczak highlighted the "world's first" cooperation agreement with the UK retail giant Morrisons during the earnings call.
In 2025, impacted by multiple factors such as macroeconomic headwinds, tariff disruptions, the U.S. federal government shutdown, and soaring computer memory prices, Xerox achieved full-year revenue of $7.02 billion, a year-on-year increase of nearly 13%; however, on an adjusted basis (including estimated revenues during the IT Savvy and Lexmark acquisitions), it fell by 7.6%. Of this, revenue from the Printing & Other segment was $6.27 billion, down 7% year-on-year, with installations of high-end, mid-range, and entry-level devices declining by 27%, 2%, and 12%, respectively, indicating significant pressure on core hardware business. However, in terms of business integration, the results of the Lexmark acquisition are beginning to show effects in market-facing operations. Bandrowczak stated that Lexmark's A3 devices have already been successfully launched in Eastern Europe, and in 2026, with the improvement of internal manufacturing capacity, the company will promote large-scale global deployment of this device series.
Against this backdrop, Xerox's three new product launches, along with its cooperation with Morrisons, may become key measures to address losses and seek breakthroughs.
Three New Products Target Growth Sectors
Facing the decline in hardware business, Xerox accelerated its product iteration in 2025 and successively launched three new devices.
The first is the IJP900 single-sheet inkjet printing device launched in September 2025. As early as July, Xerox announced a major strategic move, turning its focus back to the single-sheet inkjet printing market and reaching a cooperation agreement with Kyocera to enrich its production printing product line by procuring Kyocera's single-sheet color inkjet devices. The IJP900, as the core result of this collaboration, offers high performance and cost-effectiveness, and can be deeply integrated with Xerox FreeFlow workflow automation software, post-print finishing, and remote services, forming an end-to-end production printing solution for commercial print service providers.
The other two devices are the Proficio PX300 and PX500 digital printing devices launched in October 2025. These devices belong to Xerox's new Proficio production series, marking a new chapter in Xerox's production printing sector. "Proficio," derived from Latin, means "progress, development, and success," reflecting Xerox's mission to help customers adapt to market changes and achieve growth. This series integrates professional imaging technology, automation features, and AI-assisted technology, aiming to enhance performance, efficiency, and profitability for print service providers.
The Proficio PX300 and PX500 offer print speeds of 85 and 100 pages per minute, respectively, catering to the production needs of printers of different scales. Both devices feature ultra-high definition resolution and come with an optional fifth color unit, including fluorescent, clear, and low-gloss clear, helping customers expand high-value applications and explore new revenue growth opportunities. It is reported that orders for these two devices will begin in March 2026, with shipments expected to be completed in the second half of the year.
Benchmark Case Cooperation Empowerment
Regarding the new agreement reached with long-term client Morrison, Bandrowczak stated: "In the fourth quarter, Xerox and LMI successfully teamed up to win the world's first joint project with UK retail giant Morrison. This agreement further expands our long-term partnership with Morrison and positions Xerox as a strategic partner in its operational printing infrastructure and customer marketing communications."
This collaboration plan involves Xerox creating a fully upgraded central printing facility for the company, relying on a cloud printing management system and network printing automation solutions, and through the Lexmark MPS system, providing full-process printing support for the group's 500 supermarkets, 15 logistics centers, and headquarters. Additionally, Xerox will deploy an on-site operations team to provide dedicated services.
Morrison will also adopt Xerox's Go Inspire marketing service platform, covering direct mail marketing, member communications, and store flyer production, and will utilize the platform's digital marketing system Go360 to achieve automated marketing campaign operations, thereby enabling more targeted, data-driven customer interactions. Bandrowczak believes that this value proposition aimed at the retail industry will bring more opportunities to the company and further expand its potential customer base.
For 2026, Xerox has set a clear revenue target: revenue is expected to exceed $7.5 billion, a growth of approximately 7% compared to 2025. Bandrowczak admitted that macroeconomic headwinds persist, but the company is cautiously optimistic about improving business trends. As demand trends stabilize, new opportunities continue to emerge, leading to a larger project pipeline than the same period last year. Based on the current layout, Xerox's path to turnaround in 2026 is gradually becoming clearer, but against the backdrop of shrinking hardware business and intensified market competition, whether these measures can effectively reverse losses remains to be seen.