<ARTICLE> 5
<LEGEND>
This Schedule Contains Summary Financial Information Extracted From Xerox
Corporation's September 30, 1997 Financial Statements And Is Qualified In  Its
Its Entirety By Reference To Such Financial Statements.
</LEGEND>
<MULTIPLIER> 1,000,000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-END>                               SEP-30-1997
<CASH>                                              62
<SECURITIES>                                         0
<RECEIVABLES>                                   13,931
<ALLOWANCES>                                       424
<INVENTORY>                                      3,092
<CURRENT-ASSETS>                                10,517
<PP&E>                                           5,106
<DEPRECIATION>                                   2,819
<TOTAL-ASSETS>                                  27,248
<CURRENT-LIABILITIES>                            7,304
<BONDS>                                         13,006
<PREFERRED-MANDATORY>                              637
<PREFERRED>                                        709
<COMMON>                                           327
<OTHER-SE>                                       4,430
<TOTAL-LIABILITY-AND-EQUITY>                    27,248
<SALES>                                          6,611
<TOTAL-REVENUES>                                12,754
<CGS>                                            3,635
<TOTAL-COSTS>                                    6,761
<OTHER-EXPENSES>                                 4,618
<LOSS-PROVISION>                                   176
<INTEREST-EXPENSE>                                 450
<INCOME-PRETAX>                                  1,375
<INCOME-TAX>                                       478
<INCOME-CONTINUING>                                927
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                       927
<EPS-PRIMARY>                                     2.70
<EPS-DILUTED>                                     2.57