<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
XEROX CORPORATION'S MARCH 31, 1995 FINANCIAL STATEMENTS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-END>                               MAR-31-1995
<CASH>                                              22
<SECURITIES>                                         0
<RECEIVABLES>                                   12,206
<ALLOWANCES>                                       395
<INVENTORY>                                      2,601
<CURRENT-ASSETS>                                 9,503
<PP&E>                                           4,688
<DEPRECIATION>                                   2,633
<TOTAL-ASSETS>                                  20,087
<CURRENT-LIABILITIES>                            6,457
<BONDS>                                          9,515
<SALES>                                          1,873
<TOTAL-REVENUES>                                 3,770
<CGS>                                            1,101
<TOTAL-COSTS>                                    2,064
<OTHER-EXPENSES>                                 1,339
<LOSS-PROVISION>                                    47
<INTEREST-EXPENSE>                                 200
<INCOME-PRETAX>                                    367
<INCOME-TAX>                                       142
<INCOME-CONTINUING>                                187