Xerox Holdings Corporation Common Stock Citi’s 2026 Global TMT Conference

Yeah, happy to. Maybe let's start by taking a little bit of a step back and looking at our business on the whole. Roughly speaking, I think I guided to, what, $7.6 billion this year of revenue. Let's just use really round numbers. Call it $7.5 billion. It's basically $1 billion of IT solutions and digital services, roughly $1 billion of production print, and then $5.5 billion of what you would think of as almost like traditional office print. Okay? I use the term office there, but I don't love the term office because our hardware is in a multitude of environments.

Yeah. It's not just offices, but it's actually retail locations, distribution warehouses, manufacturing facilities, but call it the workplace.

That's predominantly what you think of as the low-end and mid-range machines, A4 and A3. That is, I think when people look at our business and the industry, that's probably the area of facing the most secular headwinds, and it's also the biggest part of our business. Okay? I think when you talk about revenue trends and competition for budgets in the IT space, again, that is probably the area of largest concern, not just because it's the biggest part of our business, but because- it's probably the area, again, with the most sort of secular headwinds.

How do we think about stabilizing that part of our business and also, frankly, getting it to growth? How do we do that? This is where we talk about this gainshare and mix shift strategy, and this is where the gainshare component of it is so important because the only way to grow in a market that's secularly challenged is to take share from others. How do we actually take that share? Why will we be able to take that share? This is where the Lexmark acquisition is so critical because it's not just about scale. That was a very strategic acquisition, and we acquired a set of capabilities that enable us to differentiate in the one area of this market and of this industry that can actually move the needle.

What do I mean by that? By acquiring Lexmark, what we acquired was the full end-to-end control of our technology stack.

From early design, development, manufacturing, delivery, installation, service of our hardware, our print hardware for the office space end to end.

There's only one other player in the industry that has that. What it enables us to do is differentiate on the service experience. Everybody in this industry, because there's been virtually no consolidation, it's highly commoditized, everybody's competing on price.

Okay? All you can compete on are reliability and price. Price is something we will never alone be able to compete on and to win on because we're not Japanese, we're American, and we need to operate with 10% operating margins, not 2%-3% operating margins.

Right. Okay? The reason, though, that now we can take these set of capabilities, this end-to-end control, and compete differently is because if you think about it, the laws of physics, okay, prevent you from taking the cost of the equipment to zero.

Okay. The laws of physics prevent you from taking the cost of the supplies to zero.

These are physical products in a physical world. You have to make them, you have to send them places, right? The laws of physics do not prevent you from bringing the cost of service to zero. The thing is, everybody in this industry sucks at service because it's hard.

You have to build up these very expensive fleets of technicians and engineers who go out in the world and show up at a customer location and fix the machine when it breaks down.