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Xerox
(NASDAQ:XRX)
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Rating:54Neutral
Price Target:
$3.00
▲(0.67% Upside)
Action:Reiterated
Date:08/18/26
The score is held back primarily by weak profitability and a highly levered, thin-equity balance sheet, despite positive and improving free cash flow. Technicals are moderately constructive with price above key moving averages and neutral momentum, while valuation is mixed (dividend support but negative P/E). The latest earnings call was constructive on raised guidance, synergies and leverage reduction, but tempered by organic revenue declines and reliance on non-recurring items for reported margin uplift.
Positive Factors
Recurring Aftermarket and Services Revenue
The installed-base model creates recurring service, supplies and support revenue after equipment placement. This can improve revenue visibility and customer retention, while managed print and workflow offerings deepen relationships beyond one-time hardware sales.
Negative Factors
Highly Leveraged, Thin-Equity Balance Sheet
Debt substantially exceeds the small equity base, limiting flexibility during demand or cost shocks. Although leverage improved in Q2, refinancing needs, interest obligations and the modest cash-flow coverage of debt remain material structural risks.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Aftermarket and Services Revenue
The installed-base model creates recurring service, supplies and support revenue after equipment placement. This can improve revenue visibility and customer retention, while managed print and workflow offerings deepen relationships beyond one-time hardware sales.
Read all positive factors
Xerox Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across different business segments, providing insight into which areas are leading growth and how diversified the company’s income streams are.
Breaks down revenue across different business segments, providing insight into which areas are leading growth and how diversified the company’s income streams are.
Data provided by:
The Fly
The FlyXerox (XRX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$387.38M
Dividend Yield3.36%
Average Volume (3M)2.89M
Price to Earnings (P/E)―
Beta (1Y)2.38
Revenue Growth25.64%
EPS Growth35.99%
CountryUS
Employees23,000
SectorIndustrials
Sector Strength72
IndustryBusiness Equipment & Supplies
Share Statistics
EPS (TTM)-7.39
Shares Outstanding131,314,510
10 Day Avg. Volume1,881,575
30 Day Avg. Volume2,894,491
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.46
Price to Sales (P/S)0.04
P/FCF Ratio1.16
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$4.23Price Target Upside41.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.09
Revenue Forecast (FY)$7.60B
Xerox Business Overview & Revenue Model
Company Description
Xerox Holdings Corporation, founded in 1906 and headquartered in Norwalk, Connecticut, operates as a global leader in workplace technology. The company specializes in creating, evolving, and distributing comprehensive document management and workf...
How the Company Makes Money
Xerox primarily makes money by selling and servicing print and document-related hardware and by providing ongoing services and supplies tied to that installed base. Key revenue streams generally include: (1) equipment sales of office and productio...
Xerox Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: management delivered clear progress on margin expansion (boosted by tariff recognition), debt reduction and raised synergy and revenue guidance thanks to Lexmark contributions and operational actions. However, organic (pro forma) revenue declines, mid-range equipment softness, elevated interest expense, input-cost headwinds (memory and oil), and near-term pressure in IT Solutions temper the upside. Reported improvement is partially driven by non-recurring accounting/cash classification items (tariff receivables and their sale), and management acknowledges execution and commodity risks that could impact results if persistent. Overall, tangible improvements in leverage, margins and synergy targets are offset by meaningful organic demand and cost challenges, producing a mixed but constructive outlook.Positive Updates
Reported Revenue Growth (Including Lexmark)
Reported revenue of $1.92 billion, up 22% year-over-year (21% in constant currency) primarily reflecting the inorganic contribution from the Lexmark acquisition.
Negative Updates
Pro Forma Revenue Decline
On a pro forma (organic) basis, revenue declined nearly 7% year-over-year in Q2; equipment revenue pro forma declined ~13%, reflecting softer mid-range and lower OEM sales.
Read all updates
Q2-2026 Updates
Positive
Negative
Reported Revenue Growth (Including Lexmark)
Reported revenue of $1.92 billion, up 22% year-over-year (21% in constant currency) primarily reflecting the inorganic contribution from the Lexmark acquisition.
Read all positive updates
Company Guidance
Xerox raised its 2026 guidance to revenue of approximately $7.6 billion (vs >$7.5B prior) and adjusted operating income of $555–605 million (up $105M from prior outlook, largely reflecting Q2 recognition of $105M in IEEPA tariff receivables and the $80M cash sale of those receivables), while maintaining free cash flow guidance of about $250 million (which includes proceeds from the tariff receivable sale); Lexmark synergies were increased to at least $350 million (roughly half realizable in 2026, remainder in 2027–28), the revenue cadence implies a ~4% decline in the back half with Q3 expected stronger than Q2 and Q4 stronger than Q3 year‑over‑year, and balance‑sheet targets call for gross and net leverage to fall by more than 2 turns from Q1 to under 5x and 4x trailing‑12‑month EBITDA respectively (with < $180M of scheduled maturities through Dec‑2027); management cautioned that higher memory and oil prices could modestly pressure results and cash.Xerox Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
18
Very Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.76B | 7.02B | 6.22B | 6.89B | 7.11B | 7.04B |
| Gross Profit | 2.17B | 1.90B | 1.96B | 2.31B | 2.32B | 2.40B |
| EBITDA | 356.00M | 91.00M | -822.00M | 291.00M | 36.00M | -49.00M |
| Net Income | -925.00M | -1.03B | -1.32B | 1.00M | -322.00M | -455.00M |
Balance Sheet | ||||||
| Total Assets | 9.72B | 9.82B | 8.37B | 10.01B | 11.54B | 13.22B |
| Cash, Cash Equivalents and Short-Term Investments | 495.00M | 512.00M | 576.00M | 519.00M | 1.04B | 1.84B |
| Total Debt | 4.22B | 4.25B | 3.59B | 3.46B | 3.96B | 4.54B |
| Total Liabilities | 9.17B | 9.15B | 7.06B | 7.24B | 7.97B | 8.77B |
| Stockholders Equity | 544.00M | 658.00M | 1.29B | 2.75B | 3.56B | 4.44B |
Cash Flow | ||||||
| Free Cash Flow | 287.00M | 259.00M | 467.00M | 649.00M | 102.00M | 561.00M |
| Operating Cash Flow | 386.00M | 350.00M | 511.00M | 686.00M | 159.00M | 629.00M |
| Investing Cash Flow | -762.00M | -698.00M | -198.00M | -5.00M | -78.00M | -85.00M |
| Financing Cash Flow | -53.00M | 278.00M | -271.00M | -1.20B | -822.00M | -1.31B |
Xerox Technical Analysis
Positive
2.98
Price Trends
2.95
Positive
2.67
Positive
2.41
Positive
Market Momentum
>-0.01
Positive
50.34
Neutral
35.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XRX, the sentiment is Positive. The current price of 2.98 is below the 20-day moving average (MA) of 3.08, above the 50-day MA of 2.95, and above the 200-day MA of 2.41, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.34 is Neutral, neither overbought nor oversold. The STOCH value of 35.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XRX.
Xerox Risk Analysis
Xerox disclosed 31 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $729.83M | 6.51 | 24.65% | ― | 11.38% | 69.06% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | $387.38M | -0.40 | -161.29% | 3.88% | 25.64% | 35.99% | |
54 Neutral | $1.74B | 13.88 | 4.06% | ― | -2.42% | -65.01% | |
54 Neutral | $2.84B | 8.54 | 29.15% | ― | -0.62% | -70.92% | |
50 Neutral | $253.50M | -1.11 | -30.45% | ― | -10.31% | -2595.28% | |
40 Underperform | $1.64B | -1.31 | -41.80% | 6.47% | 3.89% | -681.89% |
* Industrials Sector Average
XRX
Xerox
2.98
-0.75
-20.11%
CNDT
Conduent
1.68
-1.12
-40.00%
DXC
DXC Technology
10.55
-3.64
-25.65%
CNXC
Concentrix
27.86
-20.19
-42.01%
TASK
TaskUs
7.75
-3.59
-31.65%
KD
Kyndryl Holdings Incorporation
12.68
-18.83
-59.76%
Xerox Corporate Events
Business Operations and StrategyShareholder Meetings
Xerox Shareholders Back Governance, Equity Incentive Plan Changes
Positive
May 27, 2026
On May 20, 2026, Xerox shareholders approved an amendment to the company’s 2024 Equity and Performance Incentive Plan at the 2026 annual meeting, signaling continued use of equity-based compensation to align management and employee incentive...
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.