<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Xerox
Corporation's June 30, 1997 financial statements and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000,000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-END>                               JUN-30-1997
<CASH>                                             118
<SECURITIES>                                         0
<RECEIVABLES>                                   13,760
<ALLOWANCES>                                       420
<INVENTORY>                                      3,046
<CURRENT-ASSETS>                                10,545
<PP&E>                                           5,052
<DEPRECIATION>                                   2,788
<TOTAL-ASSETS>                                  27,833
<CURRENT-LIABILITIES>                            6,954
<BONDS>                                         13,437
<PREFERRED-MANDATORY>                              637
<PREFERRED>                                        713
<COMMON>                                           327
<OTHER-SE>                                       4,270
<TOTAL-LIABILITY-AND-EQUITY>                    27,833
<SALES>                                          4,265
<TOTAL-REVENUES>                                 8,378
<CGS>                                            2,354
<TOTAL-COSTS>                                    4,423
<OTHER-EXPENSES>                                 3,030
<LOSS-PROVISION>                                   114
<INTEREST-EXPENSE>                                 288
<INCOME-PRETAX>                                    925
<INCOME-TAX>                                       325
<INCOME-CONTINUING>                                607
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                       607
<EPS-PRIMARY>                                     1.78
<EPS-DILUTED>                                     1.69