Xerox Slashes Dividend Amid Lexmark Acquisition Plans

Published 4 hours agoXRX

Xerox Slashes Dividend Amid Lexmark Acquisition Plans

Xerox Holdings Corporation has announced a significant cut to its annual dividend, reducing it from $1 per share to $0.50 per share. This change will take effect in the first quarter of 2025 and is part of Xerox's strategy to support its debt reduction efforts following the planned $1.5 billion acquisition of Lexmark International. Reuters reported this acquisition as a strategic step for Xerox to enhance its market position.

In addition to the dividend reduction, Xerox has reaffirmed its fiscal year 2025 guidance. The company is projecting low single-digit revenue growth in constant currency and an adjusted operating margin of at least 5.0%. Notably, this outlook does not consider the impact of the Lexmark acquisition, which is expected to conclude in the second half of 2025, according to information from Nasdaq.

These measures underline Xerox’s focus on strengthening its financial footing while keeping an eye on growth opportunities within the dynamic market environment. The acquisition and fiscal plans together signal Xerox's strategy to navigate through competitive pressures and evolving market demands.

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Xerox Slashes Dividend Amid Lexmark Acquisition Plans

Xerox Slashes Dividend Amid Lexmark Acquisition Plans

Xerox Holdings Corporation has announced a significant cut to its annual dividend, reducing it from $1 per share to $0.50 per share. This change will take effect in the first quarter of 2025 and is part of Xerox's strategy to support its debt reduction efforts following the planned $1.5 billion acquisition of Lexmark International. Reuters reported this acquisition as a strategic step for Xerox to enhance its market position. In addition to the dividend reduction, Xerox has reaffirmed its fiscal year 2025 guidance. The company is projecting low single-digit revenue growth in constant currency and an adjusted operating margin of at least 5.0%. Notably, this outlook does not consider the impact of the Lexmark acquisition, which is expected to conclude in the second half of 2025, according to information from Nasdaq. These measures underline Xerox’s focus on strengthening its financial footing while keeping an eye on growth opportunities within the dynamic market environment. The acquisition and fiscal plans together signal Xerox's strategy to navigate through competitive pressures and evolving market demands.

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