Xerox Stock Slides as It Cuts Its 2026 Outlook and Suspends Dividends

Xerox Holdings (NASDAQ: XRX) shares fell sharply on Thursday, October 29, after the company cut its full-year outlook and suspended its common and preferred dividends. The announcement came with third-quarter results that included a large GAAP loss, although Xerox said much of that loss reflected a non-cash goodwill impairment. Historical share-price data shows the day's trading range.

The revised outlook and dividend decision stood out#

Xerox now expects 2026 adjusted operating income of $450 million to $475 million, down from its prior range of $555 million to $605 million. It reduced its free-cash-flow forecast to approximately $50 million to $100 million from about $250 million, and said it was suspending common and preferred dividends as it works to preserve cash and reduce debt. The company cited higher input costs and market headwinds in its third-quarter release.

The GAAP loss included a non-cash charge#

Revenue was $1.87 billion, down 4.7% from a year earlier. Xerox reported a GAAP net loss of $1.015 billion, or $7.73 per share, including a $959 million pre-tax non-cash goodwill impairment. Adjusted net income was $7 million, or $0.02 per share, while adjusted operating income rose to $124 million from $65 million a year earlier.

The distinction between GAAP and adjusted results matters here: the impairment increased the reported loss, while the lower forecast and dividend suspension point to tighter cash expectations. Xerox also reported $7 million in free cash flow for the quarter, down from $88 million a year earlier.

Follow the XRX discussion on TickerPosts. The next reports will show whether cost actions and its debt-reduction efforts improve cash generation.

Published October 29, 2026. This article is informational and is not investment advice.