<ARTICLE> 5 
<LEGEND> 
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM XEROX 
CORPORATION'S QUARTER ENDED MARCH 31, 1997 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-31-1997 
<PERIOD-END>                               MAR-31-1997 
<CASH>                                              31 
<SECURITIES>                                         0 
<RECEIVABLES>                                    13578 
<ALLOWANCES>                                       419 
<INVENTORY>                                       2862 
<CURRENT-ASSETS>                                 10186 
<PP&E>                                            4979 
<DEPRECIATION>                                    2746 
<TOTAL-ASSETS>                                   26688 
<CURRENT-LIABILITIES>                             6472 
<BONDS>                                          12063 
<PREFERRED-MANDATORY>                              637 
<PREFERRED>                                        718 
<COMMON>                                           327 
<OTHER-SE>                                        3984 
<TOTAL-LIABILITY-AND-EQUITY>                     26688 
<SALES>                                           1979 
<TOTAL-REVENUES>                                  4022 
<CGS>                                             1124 
<TOTAL-COSTS>                                     2151 
<OTHER-EXPENSES>                                  1443 
<LOSS-PROVISION>                                    47 
<INTEREST-EXPENSE>                                 135 
<INCOME-PRETAX>                                    428 
<INCOME-TAX>                                       150 
<INCOME-CONTINUING>                                270 
<DISCONTINUED>                                       0 
<EXTRAORDINARY>                                      0 
<CHANGES>                                            0 
<NET-INCOME>                                       270 
<EPS-PRIMARY>                                     0.78 
<EPS-DILUTED>                                     0.75