v3.26.1
Segment Reporting (Tables)
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
Selected financial information for our reportable segments was as follows:
Three months ended June 30, 2026
Print and OtherIT Solutions
Total Reportable Segments(10)
Corporate(1)
Total
External revenue$1,733 $189 $1,922 $— $1,922 
Intersegment revenue(2)
— 5 5 — 5 
Total$1,733 $194 $1,927 $— $1,927 
Reconciliation to Segment Profit
Cost of sales(3)
$459 $115 $574 $— $574 
Cost of services, maintenance, rentals and other(3)(4)(5)
608 42 650 — 650 
Research, development and engineering expenses(3)
66 — 66 — 66 
Selling, administrative and general expenses(3)(6)(7)
377 28 405 24 429 
Intersegment expense(8)
3 2 5 — 5 
Segment profit$220 $7 $227 $(24)$203 
Depreciation$71 $— $71 $— $71 
Interest income(9)
25 — 25 3 28 
Interest expense(5)
18 — 18 100 118 
Three months ended June 30, 2025
Print and OtherIT Solutions
Total Reportable Segments(10)
Corporate(1)
Total
External revenue$1,366 $210 $1,576 $— $1,576 
Intersegment revenue(2)
— 3 3 — 3 
Total$1,366 $213 $1,579 $— $1,579 
Reconciliation to Segment Profit
Cost of sales$347 $127 $474 $— $474 
Cost of services, maintenance, rentals and other(4)(5)
593 48 641 — 641 
Research, development and engineering expenses43 — 43 — 43 
Selling, administrative and general expenses(6)(7)
318 25 343 16 359 
Intersegment expense(8)
— 3 3 — 3 
Segment profit$65 $10 $75 $(16)$59 
Depreciation$47 $— $47 $— $47 
Interest income(9)
32 — 32 6 38 
Interest expense(5)
23 — 23 55 78 
Six months ended June 30, 2026
Print and OtherIT Solutions
Total Reportable Segments(10)
Corporate(1)
Total
External revenue$3,425 $343 $3,768 $— $3,768 
Intersegment revenue(2)
— 7 7 — 7 
Total$3,425 $350 $3,775 $— $3,775 
Reconciliation to Segment Profit
Cost of sales(3)
$971 $198 $1,169 $— $1,169 
Cost of services, maintenance, rentals and other(3)(4)(5)
1,258 83 1,341 — 1,341 
Research, development and engineering expenses(3)
130 — 130 — 130 
Selling, administrative and general expenses(3)(6)(7)
756 52 808 45 853 
Intersegment expense(8)
3 4 7 — 7 
Segment profit$307 $13 $320 $(45)$275 
Depreciation$140 $1 $141 $— $141 
Interest income(9)
52 — 52 6 58 
Interest expense(5)
37 — 37 184 221 
Six months ended June 30, 2025
Print and OtherIT Solutions
Total Reportable Segments(10)
Corporate(1)
Total
External revenue$2,660 $373 $3,033 $— $3,033 
Intersegment revenue(2)
— 4 4 — 4 
Total$2,660 $377 $3,037 $— $3,037 
Reconciliation to Segment Profit
Cost of sales$639 $212 $851 $— $851 
Cost of services, maintenance, rentals and other(4)(5)
1,190 98 1,288 — 1,288 
Research, development and engineering expenses85 — 85 — 85 
Selling, administrative and general expenses(6)(7)
640 48 688 40 728 
Intersegment expense(8)
— 4 4 — 4 
Segment profit$106 $15 $121 $(40)$81 
Depreciation$97 $— $97 $— $97 
Interest income(9)
65 — 65 8 73 
Interest expense(5)
45 — 45 88 133 
_____________
(1)Certain administrative and general expenses, which primarily relate to Corporate functions, are not allocated to either of our operating/reportable segments.
(2)Intersegment revenue is primarily revenue from IT hardware, software solutions and services, sold by the IT Solutions segment to the Print and Other segment.
(3)The Print and Other segment excludes the impact of a fixed asset purchase accounting adjustment related to the Lexmark Acquisition of $5 and $10 to Cost of sales, $5 and $11 to Cost of services, maintenance, rentals and other, $1 and $1 to Research, development, and engineering expenses, and $1 and $1 to Selling, administrative and general expenses for the three and six months ended June 30, 2026, respectively.
(4)As a result of the exit of certain production print manufacturing operations, the Print and Other segment excludes inventory-related charges of $6 and $11 within Cost of sales, and $4 and $6 within Cost of services, maintenance, rentals and other for the three and six months ended June 30, 2025, respectively.
(5)The Print and Other segment includes equipment financing interest expense associated with the financing debt of the Company. This is fully allocated to the Print and Other segment in support of its Finance assets. No interest expense is allocated to the IT Solutions segment, as the segment has no financing debt. Corporate includes Non-financing interest expense.
(6)Selling, administrative and general expenses include bad debt expense related to the Print and Other segment of $11 and $15 for the three months ended June 30, 2026 and 2025, respectively and $17 and $24 for the six months ended June 30, 2026 and 2025, respectively.
(7)For the three months ended June 30, 2026 and 2025, the Print and Other segment excludes the following costs: Transformation costs of $2 and $3, respectively and Transaction and related costs, net of $0 and $6, respectively. For the six months ended June 30, 2026 and 2025, the Print and Other segment excludes the following costs: Transformation costs of $4 and $9, respectively and Transaction and related costs, net of $4 and $9, respectively.
(8)Intersegment expense primarily consists of costs related to the sale of IT hardware, software solutions and services by the IT Solutions segment, to the Print and Other segment.
(9)Print and Other includes financing income, which is included in Services, maintenance rentals and other. This is fully allocated to the Print and Other segment in support of its financing business. No financing income is allocated to the IT Solutions segment, as the segment has no finance assets.
(10)The prior year presentation has been updated to conform with the current year's presentation.
Selected financial information for our reportable segments was as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Pre-tax Income (Loss)
Total Segment Profit$227 $75 $320 $121 
Corporate(24)(16)(45)(40)
Restructuring and related costs, net(23)(10)(68)(9)
Amortization of intangible assets(30)(10)(60)(20)
Transformation-related costs(1)
(2)(3)(4)(9)
Purchase Accounting Adjustment - Fixed Assets(12)— (23)— 
Transaction-related costs— (6)(4)(9)
Inventory-related impact - exit of certain production print manufacturing operations— (10)— (17)
Divestiture— — — 4 
Non-financing interest expense(100)(55)(184)(88)
Other expenses (income), net(5)(25)26 (60)
Total Pre-tax Income (loss)$31 $(60)$(42)$(127)
Depreciation and Amortization
Total reported segments$71 $47 $141 $97 
Amortization of intangible assets30 10 60 20 
Total Depreciation and amortization$101 $57 $201 $117 
__________
(1)In the first quarter of 2026, Xerox Holdings Corporation renamed “Reinvention-related costs” to “Transformation-related costs.” This change in terminology did not affect the nature of the costs.