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Xerox (XRX)
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Xerox (XRX) AI Stock Analysis

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XRX

Xerox

(NASDAQ:XRX)

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Neutral 46 (OpenAI - 4o)
Rating:46Neutral
Price Target:
$3.00
▼(-9.64% Downside)
Xerox's overall stock score is primarily impacted by financial challenges, including high leverage and negative profitability. While there are positive signs in revenue growth and cash flow, technical indicators suggest bearish momentum. The earnings call provides some optimism with successful acquisitions and synergy opportunities, but macroeconomic uncertainties and declining revenues remain significant risks.
Positive Factors
Lexmark Acquisition
The Lexmark acquisition enhances Xerox's market position and is expected to generate over $250 million in cost synergies, strengthening its competitive advantage.
IT Solutions Growth
The growth in IT Solutions, with revenue and gross profit increasing over 150% YoY, diversifies Xerox's revenue streams and reduces reliance on traditional print services.
Cash Flow Stability
Stable cash flow generation provides Xerox with the resilience needed to navigate financial challenges and invest in strategic initiatives.
Negative Factors
Declining Revenue
Declining revenue highlights challenges in maintaining sales momentum, which can impact long-term growth and profitability.
Operating Margin Decline
A declining operating margin indicates rising costs or inefficiencies, which could undermine profitability and competitive positioning.
S&P Index Removal
Removal from the S&P SmallCap 600 may reduce visibility and investor interest, potentially affecting stock liquidity and market perception.

Xerox (XRX) vs. SPDR S&P 500 ETF (SPY)

Xerox Business Overview & Revenue Model

Company DescriptionXerox Holdings Corporation (XRX) is a multinational corporation that specializes in printing and document management solutions. Founded in 1906, Xerox operates primarily in the technology sector, providing a range of products and services including digital printing systems, managed print services, and document management software. The company serves various industries, including education, healthcare, and government, with a focus on innovative solutions that enhance productivity and efficiency.
How the Company Makes MoneyXerox generates revenue through multiple streams, including the sale of hardware, such as printers and multifunction devices, and the sale of consumables like toner and ink. Managed print services, which involve optimizing a company's printing environment to reduce costs and increase efficiency, also contribute significantly to its revenue. Additionally, Xerox earns income from software solutions that improve document workflow and management. The company has formed strategic partnerships with other tech firms and service providers to enhance its offerings and access new markets, further bolstering its financial performance.

Xerox Key Performance Indicators (KPIs)

Any
Any
Revenue by Product
Revenue by Product
Chart Insights
Data provided by:Main Street Data

Xerox Earnings Call Summary

Earnings Call Date:Oct 30, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Jan 22, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted the successful integration of recent acquisitions and growth in the IT Solutions segment. However, the company faced significant challenges with revenue decline, equipment sales, and macroeconomic uncertainties, including tariff impacts.
Q3-2025 Updates
Positive Updates
Successful Integration of Lexmark and ITsavvy
The integration of Lexmark and ITsavvy has been largely successful with additional $50 million in synergy opportunities identified. Early integration efforts resulted in the elimination of 1,200 roles, expected to save more than $125 million by year-end.
IT Solutions Business Growth
The IT Solutions segment grew pro forma revenue by over 12% in actual currency, driven by public sector deployments and increased cross-selling momentum.
Free Cash Flow Improvement
Free cash flow increased to $131 million, a $24 million improvement over the prior year.
AI and Operational Efficiency Initiatives
Xerox launched an AI center of excellence to enhance operational efficiencies, expecting AI-driven savings to add to existing synergy savings opportunities.
Negative Updates
Revenue Decline
Pro forma revenue declined approximately 8%, and adjusted operating income margin decreased by 190 basis points year-over-year.
Challenges with Equipment Sales
Equipment sales for legacy Xerox declined 14% year-over-year in constant currency, with total equipment installations decreasing by 24% due to macroeconomic uncertainty and government policy-related delays.
Impact of Tariffs and Economic Uncertainty
The quarter was impacted by $35 million in tariff-related costs and economic uncertainty, leading to delays in purchasing decisions among clients.
Adjusted Earnings Per Share Decrease
Adjusted earnings per share decreased by $0.05 year-over-year, primarily due to lower adjusted operating income and higher interest expenses.
Company Guidance
During the Xerox Holdings Corporation Third Quarter 2025 Earnings Release Conference Call, the company provided updates on its recent performance and future guidance. Xerox reported a revenue of $1.96 billion, reflecting a 28% increase in actual currency, with contributions from the Lexmark and ITsavvy acquisitions. However, pro forma revenue showed an 8% decline. Adjusted operating income margin fell by 190 basis points year-over-year to 3.3%. Free cash flow rose to $131 million, a $24 million increase from the previous year. The adjusted earnings per share (EPS) decreased by $0.05 to $0.20. The company identified $50 million in additional synergy opportunities from the Lexmark integration, with expectations to realize these in 2026. Furthermore, Xerox increased its Lexmark synergy forecast by $50 million, aiming for total savings north of $1 billion. Looking forward, Xerox revised its 2025 revenue growth expectation to 13% in constant currency, with an adjusted operating margin of around 3.5%. Free cash flow guidance was adjusted from $250 million to $150 million, citing post-acquisition transaction costs and macroeconomic uncertainties.

Xerox Financial Statement Overview

Summary
Xerox's financial performance is challenged by declining revenues and profitability, high financial leverage, and operational inefficiencies. Despite stable cash flow generation, the company faces significant financial health issues that need addressing.
Income Statement
35
Negative
Xerox has faced declining revenues and profitability, with significant drops in gross and net profit margins over the TTM. Revenue growth has been negative, indicating challenges in maintaining sales. The negative EBIT and EBITDA margins in the TTM highlight operational inefficiencies and financial challenges.
Balance Sheet
40
Negative
The company's balance sheet shows a moderate debt-to-equity ratio, reflecting a significant level of financial leverage. The equity ratio has decreased over time, indicating reduced equity in proportion to total assets. Return on equity is negative due to the net loss, showing a lack of profitability for shareholder investments.
Cash Flow
50
Neutral
Xerox's cash flow remains relatively stable, with positive operating and free cash flow, despite negative net income. The operating cash flow to net income ratio is high, indicating strong cash generation relative to reported earnings losses. However, free cash flow growth has been negative, signifying potential challenges in sustaining cash flow levels.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.61B6.22B6.89B7.11B7.04B7.02B
Gross Profit2.54B1.96B2.31B2.32B2.40B2.63B
EBITDA-98.00M-822.00M307.00M47.00M695.00M718.00M
Net Income-977.00M-1.32B1.00M-322.00M-455.00M192.00M
Balance Sheet
Total Assets10.07B8.37B10.01B11.54B13.22B14.74B
Cash, Cash Equivalents and Short-Term Investments479.00M576.00M519.00M1.04B1.84B2.63B
Total Debt4.41B3.59B3.46B3.96B4.54B4.79B
Total Liabilities9.47B7.06B7.24B7.97B8.56B8.93B
Stockholders Equity370.00M1.29B2.75B3.56B4.65B5.81B
Cash Flow
Free Cash Flow354.00M467.00M649.00M102.00M561.00M474.00M
Operating Cash Flow410.00M511.00M686.00M159.00M629.00M548.00M
Investing Cash Flow-909.00M-198.00M-5.00M-78.00M-85.00M-246.00M
Financing Cash Flow455.00M-271.00M-1.20B-822.00M-1.31B-416.00M

Xerox Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.32
Price Trends
50DMA
3.62
Negative
100DMA
4.29
Negative
200DMA
5.09
Negative
Market Momentum
MACD
-0.09
Negative
RSI
45.39
Neutral
STOCH
38.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XRX, the sentiment is Negative. The current price of 3.32 is below the 20-day moving average (MA) of 3.36, below the 50-day MA of 3.62, and below the 200-day MA of 5.09, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 45.39 is Neutral, neither overbought nor oversold. The STOCH value of 38.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XRX.

Xerox Risk Analysis

Xerox disclosed 28 risk factors in its most recent earnings report. Xerox reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Xerox Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$28.39B17.5216.39%3.14%-1.97%48.61%
$2.54B6.9212.60%-4.93%497.03%
$37.18B12.37-10.20%1.83%8.50%-7.62%
$6.57B23.2326.55%-3.44%
$375.98M77.272.21%-14.36%-73.74%
$417.75M-93.23%12.80%3.67%29.09%
$254.52M-3.02-1.53%78.84%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XRX
Xerox
3.32
-4.54
-57.76%
UIS
Unisys
3.57
-3.73
-51.10%
WIT
Wipro
2.63
-0.47
-15.16%
CNDT
Conduent
2.38
-1.28
-34.97%
DXC
DXC Technology
14.20
-6.30
-30.73%
KD
Kyndryl Holdings Incorporation
28.92
5.92
25.74%

Xerox Corporate Events

Xerox Reports Q3 2025 Earnings Amid Strategic Progress
Oct 31, 2025

Xerox Corporation, a leader in document management and IT solutions, has released its third-quarter earnings report for 2025, highlighting significant financial and strategic developments. The company, which operates primarily in the technology sector, is known for its innovative solutions in printing and IT services, bolstered by its recent acquisition of Lexmark.

Financial Disclosures
Xerox Reports Q3 2025 Earnings with Emphasis on Non-GAAP Metrics
Neutral
Oct 30, 2025

Xerox Holdings Corporation announced their third quarter 2025 earnings, highlighting the use of non-GAAP financial measures to provide investors with a clearer understanding of their operational results. The release of these earnings is significant for stakeholders, as it offers insights into the company’s financial health and strategic direction, potentially impacting investor confidence and market positioning.

The most recent analyst rating on (XRX) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Xerox stock, see the XRX Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Xerox Announces Leadership Changes with New President
Neutral
Aug 15, 2025

On August 11, 2025, Xerox Holdings Corporation announced that John Bruno would step down as President and Chief Operating Officer by August 31, 2025, to pursue a CEO role outside the company. Bruno will remain on the board and chair a new Integration Committee. Louie Pastor, currently Chief Administrative Officer and Global Head of Operations, will succeed Bruno as President and COO starting September 1, 2025. Additionally, Jacques-Edouard Gueden will become Chief Revenue Officer, leading Xerox’s print go-to-market units. These leadership changes are part of Xerox’s strategy to drive growth and transformation, with Pastor and Gueden expected to strengthen the company’s market position and operational efficiency.

The most recent analyst rating on (XRX) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Xerox stock, see the XRX Stock Forecast page.

Xerox Earnings Call: Strategic Moves Amid Challenges
Aug 2, 2025

The recent earnings call for Xerox Corporation painted a picture of mixed sentiments, highlighting both strategic successes and ongoing challenges. The acquisition of Lexmark and robust performance in the IT Solutions segment were bright spots, while issues such as declining print revenue, reduced operating income margin, tariff and tax difficulties, and negative free cash flow posed significant hurdles. The company expressed cautious optimism, anticipating synergies from acquisitions and strategic cost reductions to bolster future performance.

Xerox Reports Q2 2025 Results Amid Lexmark Integration
Aug 1, 2025

Xerox Corporation, a leader in document management and IT solutions, has announced its second-quarter 2025 financial results, highlighting its recent acquisition of Lexmark as a strategic move to enhance its core offerings. The company reported a slight decline in revenue to $1.58 billion, with a net loss of $106 million, reflecting challenges in the current economic landscape. Despite these figures, Xerox’s IT Solutions segment showed significant growth, driven by the integration of Lexmark and a focus on cost management. Looking ahead, Xerox remains committed to its Reinvention strategy, with expectations of revenue growth and improved financial performance in 2026.

Financial Disclosures
Xerox Reports Second Quarter 2025 Earnings with Key Financial Insights
Neutral
Jul 31, 2025

Xerox Holdings Corporation announced its second quarter 2025 earnings, highlighting the use of non-GAAP financial measures to provide investors with a clearer understanding of its operational results. The announcement is expected to offer valuable insights into the company’s financial health and strategic direction, potentially impacting its market positioning and stakeholder decisions.

The most recent analyst rating on (XRX) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Xerox stock, see the XRX Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 31, 2025