<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
XEROX CORPORATION'S MARCH 31, 1996 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-31-1996
<PERIOD-END>                               MAR-31-1996
<CASH>                                               5
<SECURITIES>                                         0
<RECEIVABLES>                                   12,925
<ALLOWANCES>                                       394
<INVENTORY>                                      2,911
<CURRENT-ASSETS>                                10,209
<PP&E>                                           4,827
<DEPRECIATION>                                   2,692
<TOTAL-ASSETS>                                  26,375
<CURRENT-LIABILITIES>                            6,681
<BONDS>                                         12,178
<PREFERRED-MANDATORY>                               25
<PREFERRED>                                        734
<COMMON>                                           110
<OTHER-SE>                                       3,760
<TOTAL-LIABILITY-AND-EQUITY>                    26,375
<SALES>                                          1,917
<TOTAL-REVENUES>                                 3,928
<CGS>                                            1,092
<TOTAL-COSTS>                                    2,120
<OTHER-EXPENSES>                                 1,424
<LOSS-PROVISION>                                    31
<INTEREST-EXPENSE>                                 148
<INCOME-PRETAX>                                    384
<INCOME-TAX>                                       139
<INCOME-CONTINUING>                                237
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                       237
<EPS-PRIMARY>                                     2.03
<EPS-DILUTED>                                     1.95