Xerox Releases 4Q, Full-Year 2022 Results

Xerox Holdings Corporation announced its 2022 fourth-quarter and full-year results and guidance for 2023.

Xerox reported that its fourth quarter revenue was $1.94 billion, up 9.2% year-over-year or up 13.9% in constant currency. GAAP earnings per share (EPS) were $0.74, up $4.71 year-over-year. Prior year Q4 GAAP EPS includes an after-tax non-cash goodwill impairment charge of $4.38 per share. Adjusted operating margin was 9.2%, up 440 basis points year-over-year.

Fourth quarter operating cash flow was $186 million, down $12 million year-over-year, while free cash flow was $168 million, down $14 million year-over-year.

For full year 2022, revenue was $7.11 billion, up 1% year-over-year, or up 4.8% in constant currency. GAAP loss per share was $2.15, up $0.41 year-over-year. Both the current year and prior year include after-tax non-cash goodwill impairment charges of $2.54 and $4.08 per share, respectively. Adjusted operating margin was 3.9%, down 140 basis points year-over-year.

Operating cash flow was $159 million, down $470 million year-over-year, while full year free cash flow was $143 million, excluding a one-time product supply termination charge, down $418 million year-over-year.

“Resilient demand and improvements in supply chain conditions drove solid Q4 growth in revenue and profits,” said Steve Bandrowczak, CEO at Xerox. “Our employees and partners worked hard to deliver the highest level of revenue since the start of the pandemic, and I am proud of the focus and dedication which led to these results. As macroeconomic uncertainty extends through this year, we will continue working alongside our clients to develop and deploy essential workplace solutions and services, positioning Xerox for long-term growth in profitability.”