Xerox’s fourth-quarter results underscored a gradual stabilization in its production printing business, supported by the integration of Lexmark and a sharp rise in equipment installations. Total equipment sales reached $485 million in Q4, with installations nearly doubling year over year, including Lexmark, reflecting renewed activity in entry- and mid-range production segments. While legacy Xerox high-end production systems continued to decline, the combined portfolio expanded Xerox’s installed base and strengthened its position across transactional, light production, and enterprise print environments.

Post-sale revenue remained the backbone of Xerox’s production print economics, accounting for more than three-quarters of quarterly revenue. Services, maintenance, and supplies usage were stable, with branded supplies revenue holding steady and page volume declines moderating toward year-end. Xerox also pointed to workflow simplification and deliberate exits from lower-margin manufacturing operations as contributors to improved consistency, even as product costs and tariff-related pressures weighed on margins during the quarter.

Looking forward, Xerox expects production printing to play a central role in its 2026 outlook, with adjusted operating income projected to increase by more than $200 million year over year. Continued Lexmark synergies, expanded dealer coverage, and a higher sales pipeline entering the new year are expected to support improved utilization across the production fleet. Management emphasized that a simplified operating structure and a broader production portfolio position Xerox to capture demand as print volumes stabilize and customers prioritize efficiency, reliability, and integrated print workflows.