<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM XEROX CORPORATION'S 9-30-99 FINANCIAL STATEMENTS AND IS
QUALIFED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000

                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1999
<PERIOD-END>                               SEP-30-1999
<CASH>                                             106
<SECURITIES>                                         0
<RECEIVABLES>                                   16,515
<ALLOWANCES>                                       451
<INVENTORY>                                      3,048
<CURRENT-ASSETS>                                12,576
<PP&E>                                           5,376
<DEPRECIATION>                                   2,937
<TOTAL-ASSETS>                                  28,952
<CURRENT-LIABILITIES>                            7,690
<BONDS>                                         15,688
<PREFERRED-MANDATORY>                              638
<PREFERRED>                                        674
<COMMON>                                           666
<OTHER-SE>                                       4,045
<TOTAL-LIABILITY-AND-EQUITY>                    28,952
<SALES>                                          7,140
<TOTAL-REVENUES>                                13,790
<CGS>                                            3,898
<TOTAL-COSTS>                                    7,608
<OTHER-EXPENSES>                                 4,550
<LOSS-PROVISION>                                   205
<INTEREST-EXPENSE>                                 606
<INCOME-PRETAX>                                  1,632
<INCOME-TAX>                                       506
<INCOME-CONTINUING>                              1,130
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     1,130
<EPS-BASIC>                                       1.66
<EPS-DILUTED>                                     1.55