Xerox Holdings Corp (XRX) stock plummeted 5.10% in Thursday's trading session following the release of its disappointing first-quarter 2025 financial results. The company reported wider losses and missed analyst estimates, citing macroeconomic uncertainties and trade policy concerns.

For the first quarter, Xerox posted an adjusted loss per share of $0.06, compared to earnings of $0.06 per share in the same period last year. This fell short of the analyst consensus estimate of a $0.03 loss per share. Revenue declined 3.0% year-over-year to $1.46 billion, missing the expected $1.50 billion. The company's gross margin also contracted by 30 basis points to 29.2%.

Xerox CEO Steve Bandrowczak acknowledged the challenging environment, stating, "In a quarter marked by increasing levels of macroeconomic and trade policy uncertainty, our team remained focused on what we can control." Despite the headwinds, the company maintained its full-year 2025 outlook, expecting low single-digit revenue growth in constant currency and an adjusted operating margin of at least 5.0%. However, investors appeared skeptical of the company's ability to achieve these targets given the current economic backdrop, leading to the significant stock sell-off.