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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Xerox Holdings Corporation (XRX - Free Report) Despite experiencing top-line decline over the years on decreased demand for paper-related systems and products, Norwalk, CT-based Xerox remains a leader in the contractual print and document services market.
XRX is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Industrial Products stock. XRX has a Momentum Style Score of B, and shares are up 1% over the past four weeks.
For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.14 to $0.17 per share. XRX boasts an average earnings surprise of +194.6%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, XRX should be on investors' short list.
PRAGUE--(BUSINESS WIRE)--STARTEEPO SICAV a.s. (“STARTEEPO”) today issued an investor presentation and the following letter to the Board of Directors (the “Board”) of Xerox Holdings Corporation (“Xerox” or the “Company”) (NASDAQ: XRX). STARTEEPO, which has increased its investment in Xerox to a beneficial ownership of 7.34%, in stocks and options, is urging the Board to take bold actions to unlock significant shareholder value, including by increasing transparency about Xerox Financial Services'.
Společnost Starteepo, vedená českým investorem Františkem Bostlem, vyzvala společnost Xerox, v níž navýšila svůj podíl na 7,34 procenta včetně opcí, k přijetí kroků, které by odemkly hodnotu pro akcionáře. Zároveň požaduje strategické přezkoumání podnikání Xeroxu v oblasti finančních služeb. Akcie Xeroxu reagují v premarketu růstem až o osm procent.
Pražská investiční společnost je aktuálně se zmíněným podílem 7,34 procenta včetně opcí po firmách Blackrock a Vanguard třetím největším akcionářem Xeroxu. V otevřeném dopise firmu vyzývá ke snížení zadlužení rozvahy a k disciplinovanějšímu nakládání s kapitálem.
„Starteepo oceňuje pokrok současného managementu při integraci Lexmarku, zvyšování ziskovosti a snižování zadlužení. Za další významnou příležitost považuje Xerox Financial Services (XFS), finanční divizi zajišťující financování zařízení zákazníkům. Podle analýzy Starteepo by XFS mohla mít hodnotu 1,3–1,5 miliardy dolarů, tedy přibližně 7,69 USD na akcii Xeroxu. Fond proto navrhuje zvýšit transparentnost výsledků XFS a zahájit strategické posouzení možností jejího dalšího rozvoje, včetně zapojení externího kapitálu, joint venture, částečné monetizace či případného prodeje,“ uvádí Bostlova společnost v tiskové zprávě.
Zmíněná hodnota XFS podle Starteepo – 7,69 USD na akcii – značí více než dvojnásobek ceny akcií celé společnosti, které v pátek na newyorské burze uzavřely na ceně 3,32 USD.
Xerox vyrábí tiskárny, skenery, spotřební materiál a příslušenství. Akcie firmy za posledních 12 měsíců ztratily přibližně 13 procent, což tržní hodnotu dostalo na úroveň kolem 418 milionů dolarů, píše agentura Bloomberg.
Starteepo také uvedla, že divize XFS by měla zvážit takzvanou optimalizovanou kapitálovou strukturu, v níž by financování portfolia poskytovala třetí strana, zatímco Xerox by si ponechal správu služeb a vztahy se zákazníky. Starteepo poukázalo na to, že podobné modely financování využívají například společnosti HP, Siemens nebo General Electric.
„Domníváme se, že pokračující snižování zadlužení, větší transparentnost divize XFS a vybudování kapitálově nenáročné platformy společně povedou k růstu hodnoty vlastního kapitálu společnosti. V konečném důsledku vidíme méně zadlužený a nově přeceněný Xerox jako firmu, která bude lépe schopna podílet se na konsolidaci odvětví a dosahovat prémiového ocenění. Jsme přesvědčeni, že po úspěšném snížení zadlužení rozvahy a následném přecenění společnosti by Xerox mohl být pro potenciální zájemce o převzetí v budoucnu oceněn až na 3,3 mld. USD hodnoty vlastního kapitálu, což představuje více než 18 USD na akcii, pokud by se společnost rozhodla dále zvažovat další strategické alternativy,“ stojí dále v dopise Starteepo.
Key Takeaways Xerox shares surged 64% in six months, outpacing the industry and the S&P 500 Composite.Xerox beat revenue and EPS estimates in the first two quarters of 2026 after a Q4'25 miss.Xerox is expanding IDP and digital services while its current ratio improved to 1.18 in Q2. Xerox Holdings Corporation (XRX - Free Report) shares have surged 63.9% in the past six months. Meanwhile, the industry and the Zacks S&P 500 Composite have returned 17.9% and 11.1%, respectively.
6-Month Share Price Performance Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 top line is pegged at $7.6 billion, suggesting 8.1% year-over-year growth. For EPS, the consensus mark is pinned at 17 cents, indicating a 128.3% jump.
Factors That Augur Well for XRX’s SuccessBack-to-Back Beats Following Slump: Xerox’s top- and bottom-line results for the fourth quarter of 2025 missed the consensus estimate. However, a turnaround was evident as the company’s revenues and earnings per share (EPS) surpassed the consensus mark in the first and second quarters of 2026. A persistent beat following a major detriment signals recovery that appears highly appealing to investors, compelling them to consider adding this stock to their portfolios.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Intelligent Document Processing (IDP) Aids Customer Base Expansion: Xerox’s strategic focus on IDP leverages its document-management expertise to expand beyond hardware and strengthen its role in customer workflows.
Its Capture & Content Services offerings use AI, robotic process automation and machine learning to classify, extract and process data from physical and digital documents, helping customers automate work, reduce costs and support compliance. Management continues to prioritize expansion in digital services and broader wallet share across its existing customer base.
Solid Liquidity: Xerox’s current ratio improved to 1.18 in the second quarter of 2026 from the preceding quarter’s 1.11 due to a $161-million reduction in short-term debt and higher other current assets. Current assets of $3.70 billion exceeded current liabilities of $3.13 billion, bolstering its ability to address near-term obligations. Investors should find this highly appealing, as a current ratio of more than 1 signals effective short-term debt coverage.
Risks Faced by XeroxFierce Competition: Xerox operates in a competitive market, shaped by rapid technology change, pricing, reliability, quality, distribution and customer support. It competes with Canon, FUJIFILM Business Innovations and HP. As competition increases, it compels the company to make rapid investments that can easily create imbalances in growth and profitability.
Brand Perception Hinders IDP Pivot: Xerox’s legacy identity as a “copier company” can hinder its shift toward IDP, digital services and IT Solutions. The company is expanding its portfolio under a unified Xerox brand, but the transformation is not yet reflected in the reported results.
XRX’s Zacks Rank & Stocks to ConsiderThe company currently has a Zacks Rank of #3 (Hold).
Some better-ranked stocks from the broader Zacks Industrial Products sector are Enersys (ENS - Free Report) and Alarm.com (ALRM - Free Report) , each currently sporting a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Enersys has a long-term earnings growth expectation of 15%. ENS delivered a trailing four-quarter earnings surprise of 22.4%, on average.
Alarm.com has a long-term earnings growth expectation of 12.8%. ALRM delivered a trailing four-quarter earnings surprise of 14.6%, on average.
Key Takeaways Xerox beat Q2 estimates and raised 2026 revenue and adjusted operating income guidance.Lexmark synergies and cost actions lifted margins, with adjusted operating margin reaching 10.6%.Pro forma revenue fell 6.5%, while free cash flow improved to $11 million in the second quarter. Xerox Holdings Corporation (XRX - Free Report) topped second-quarter 2026 expectations and raised its full-year outlook as Lexmark integration benefits and cost actions lifted profitability. Revenue growth was acquisition-driven, while underlying demand remained softer.
The main question is how much of the profit improvement can persist without the $105 million tariff-receivable benefit. Margin expansion excluding that item and higher Lexmark synergy targets support the operating case, but pro forma revenue declines and modest free cash flow keep execution in focus.
XRX's Q2 Beat Included a $105 Million TailwindXRX reported earnings of 36 cents per share, topping the Zacks Consensus Estimate by more than 100%. Revenues of $1.92 billion beat the consensus mark by 1% and increased 22% year over year.
Profitability received material support from a $105 million pre-tax benefit tied to tariff receivables. Adjusted operating margin reached 10.6%, but excluding that benefit, the margin was 5.1%, still up 140 basis points year over year.
Xerox Raises 2026 Profit Guidance After Q2Xerox now expects 2026 revenues of approximately $7.6 billion, up from its prior outlook of more than $7.5 billion. The revision reflects higher expectations for the Print and Other segment.
Adjusted operating income guidance increased to $555-$605 million from $450-$500 million. Free cash flow guidance remained approximately $250 million, making the unchanged cash target an important counterpoint to the higher profit outlook.
XRX's Lexmark Synergies Add Operating LeverageXerox raised its Lexmark gross cost synergy target by $50 million to at least $350 million, with half expected to be realized in 2026. The higher target builds on Project Reinvention and the company's broader effort to reduce its cost base.
Adjusted gross margin improved to 36.4% from 29.3%, aided by Lexmark, integration synergies and transformation savings. The margin progress suggests operating leverage is emerging, although the tariff-receivable benefit also contributed to reported profitability.
Xerox's Pro Forma Revenue Decline Tests MomentumReported revenue rose 22% year over year, but pro forma revenue declined 6.5%. Print and Other revenue fell 6.1% on a pro forma basis, while pro forma equipment revenue dropped 13%, showing that acquisition-driven growth has not yet translated into underlying expansion.
HP Inc. (HPQ - Free Report) remains a relevant print benchmark because it continues to report a dedicated Printing segment. Canon Inc. (CAJPY - Free Report) likewise competes across office multifunction devices, laser printers and production printing through its Printing Business Unit.
XRX's Free Cash Flow Must Catch UpFree cash flow improved to $11 million in the second quarter from an outflow of $30 million a year earlier. Operating cash flow reached $37 million compared with an $11 million outflow in the prior-year period.
Image Source: Zacks Investment Research
The improvement is directionally positive, but Xerox still expects approximately $250 million of free cash flow for 2026. Delivery against that target will help show whether margin gains and integration savings are translating into stronger cash generation.
XRX's Style Scores Point to Mixed Near-Term SignalsThe quarter strengthened Xerox's profit outlook, but the mix of tariff benefits, synergy gains and contracting pro forma revenues keeps the durability question open. Stabilization in underlying revenue trends would make the margin improvement more convincing.
XRX currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term stance. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It also has a Value Score of A, Growth Score of A, Momentum Score of A and VGM Score of A. Those grades are constructive within the Style Score framework, but Style Scores are designed to complement rather than override the Zacks Rank.
Key Takeaways Xerox is rebuilding margins through cost savings and Lexmark synergies as its core print business declines.Adjusted operating margin hit 10.6% in Q2 2026, while pro forma revenues fell 6.5%.Debt fell $223 million in Q2, but gross leverage remained high at 5.9X and interest expense rose 82%. Xerox Holdings Corporation (XRX - Free Report) is trying to turn cost discipline and debt reduction into a more durable earnings recovery even as its core print market keeps shrinking. Project Reinvention, Lexmark integration and a low valuation have improved the turnaround case, but the underlying revenue picture remains uneven.
The investment question is whether margin gains and deleveraging can outpace secular print pressure. Second-quarter 2026 results show progress on profitability and liquidity, while pro forma revenue declines and elevated leverage keep execution risk high.
Xerox Cost Savings Are Rebuilding MarginsProject Reinvention had delivered more than $500 million of cumulative run-rate gross cost savings by year-end 2025. Xerox also raised its Lexmark gross cost synergy target to at least $350 million, with half expected in 2026, giving management another lever to support profitability.
That progress showed up in second-quarter margins. Adjusted operating margin reached 10.6%, up 690 basis points year over year. Excluding the $105 million tariff-receivable benefit, margin was 5.1%, still 140 basis points higher year over year, showing improvement beyond the tariff-related benefit.
XRX's Cheap Valuation Comes With Balance-Sheet RiskValuation is a clear part of the appeal. XRX trades at 4.59X forward 12-month earnings per share, compared with 9.73X for the Zacks sub-industry. Its price-to-sales ratio is 0.05, adding another low valuation measure to the turnaround case.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
The discount comes with financial strain. Gross leverage was 5.9X and net leverage was 5.1X after the second quarter, down from 7X and 6X at the end of the first quarter. Non-financing interest expense rose 82% year over year to $100 million, keeping balance-sheet risk in focus.
Xerox's Growth Push Still Faces Print PressureXerox's top line is projected to grow 7.9% year over year in 2026, helped by its strategic pivot and broader portfolio. Yet second-quarter reported growth was acquisition-driven, with pro forma revenues down 6.5%.
Print and Other revenue fell 6.1% on a pro forma basis, equipment revenue dropped 13% and IT Solutions revenue declined 8.9%. Those figures show that Lexmark has added scale without eliminating underlying pressure in Xerox's businesses.
The challenge is broader than Xerox. HP Inc. (HPQ - Free Report) reported flat fiscal second-quarter 2026 Printing revenue and a 7% decline in hardware units. Canon Inc. (CAJPY - Free Report) reported Printing at 54% of 2025 net sales and continues to offer office multifunction devices, laser printers and commercial printers.
XRX Deleveraging Improves Financial FlexibilityXerox reduced total debt by $223 million during the second quarter. Management now expects year-end gross leverage below 5X and net leverage below 4X, which would further improve financial flexibility ahead of upcoming debt maturities.
Near-term liquidity has improved as well. The current ratio rose to about 1.18 from roughly 1.11 at year-end 2025, with current assets of $3.70 billion above current liabilities of $3.13 billion. The cushion is better, but leverage remains high enough that continued debt reduction is central to the turnaround.
XRX's Style Scores Support a Cautious HoldXRX is a turnaround stock where the improvement case is visible but not complete. Cost savings, margin expansion and lower debt are moving in the right direction, while pro forma declines in print and IT Solutions keep the case dependent on execution rather than valuation alone.
XRX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It also has a Value Score of A, Growth Score of A, Momentum Score of A and VGM Score of A. Those Style Scores strengthen the quantitative profile, but they are designed to complement the Zacks Rank rather than override it.
For investors weighing buy, hold or wait, the Rank supports caution. The A scores keep XRX worth monitoring, while persistent print pressure, competition and leverage argue for clearer evidence that operating gains can be sustained before taking a more aggressive view.
I maintain a Hold rating on Xerox Holdings as core print revenue remains in decline despite new product launches and Lexmark synergies. Q2 headline revenue growth was acquisition-driven; pro forma revenue declined 6.5%, and margin expansion was largely due to a one-time tariff benefit. The 9-Series launch and Lexmark integration offer margin and cost-saving potential, but evidence of sustainable improvement is still limited.
NORWALK, Conn.--(BUSINESS WIRE)--Xerox Holdings Corporation (NASDAQ: XRX) announced today that its board of directors declared a quarterly dividend of $0.025 per share on Xerox Holdings Corporation Common Stock. The dividend is payable on October 30, 2026, to shareholders of record on September 30, 2026. The board also declared a quarterly dividend of $20.00 per share on the outstanding Xerox Holdings Series A Convertible Perpetual Preferred Stock. The dividend is payable on October 1, 2026, to.
Key Takeaways XRX earnings rose to 36 cents per share, while revenues increased 22% y/y to $1.92 billion.Lexmark and a $105 million tariff benefit helped lift its adjusted operating margin to 10.6% y/y.Xerox raised 2026 revenue guidance to about $7.6 billion and profit outlook to $555-$605 million. Xerox Holdings Corporation (XRX - Free Report) reported impressive second-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate.
XRX’s earnings of 36 cents per share topped the Zacks Consensus Estimate by more than 100%. In the year-ago quarter, the company had incurred an adjusted loss of 64 cents per share.
Revenues of $1.92 billion surpassed the consensus mark by 1% and rose 22% year over year. The Lexmark acquisition lifted reported growth, while pro forma revenues declined 6.5%. A $105 million pre-tax benefit from IEEPA tariff receivables materially supported profitability.
However, the better-than-expected results and a raised 2026 revenue guidance failed to impress investors, as the stock has declined 15.5% since the earnings release on July 30.
For 2026, Xerox expects revenues of approximately $7.6 billion, up from its previous outlook of more than $7.5 billion. The revision reflects higher expectations for the Print and Other segment. The Zacks Consensus Estimate for the same is pegged at $7.59 billion.
Xerox shares have depreciated 28.6% over the past year compared with the Office Supplies industry’s 7.2% decline. The Zacks S&P 500 composite has risen 21.1% over the same time frame.
XRX’s Revenue Mix Reflects Lexmark ContributionEquipment sales revenues increased 15.2% year over year on a reported basis and 15% at constant currency to $387 million. However, pro forma equipment revenues declined 13%, reflecting lower installations and a shift toward entry-level products.
Post-sale revenues climbed 30.7% on a reported basis and 29.7% at constant currency to $1.35 billion. On a pro forma basis, the metric fell 3.9%, hurt by lower equipment service, managed print services and financing revenues.
Xerox’s Print Business Posts Strong Profit GrowthPrint and Other revenues totaled $1.73 billion, up 26.9% year over year but down 6.1% on a pro forma basis. Segment profit surged to $220 million from $65 million, while the segment margin expanded to 12.7% from 4.8%.
Total installations declined 6% on a pro forma basis. Entry color installations rose 6%, but mid-range and high-end installations fell 13% and 19%, respectively. Management expects the entry-product backlog to support installations and revenues during the second half of 2026.
XRX’s IT Solutions Revenues DeclineIT Solutions revenues declined 8.9% year over year to $194 million. Product revenues fell 8.5% to $140 million, while services revenues decreased 14% to $49 million. Segment profit dropped 30% to $7 million and margin contracted to 3.7% from 4.8%.
Underlying activity was firmer than reported revenues. Pro forma non-GAAP gross billings rose 4% to $228 million, with year-to-date gross billings and gross bookings increasing 11% and 6%, respectively. Xerox cited double-digit growth in infrastructure and networking offerings and endpoints.
Xerox’s Margins Benefit From Tariff ReceivablesAdjusted operating income increased to $203 million from $59 million. The adjusted operating margin expanded 690 basis points to 10.6%. Excluding the tariff receivables benefit, the margin was 5.1%, up 140 basis points year over year.
Adjusted gross margin improved to 36.4% from 29.3%, aided by Lexmark, integration synergies and transformation savings. These benefits were partly offset by higher incentive compensation, product costs and lower finance-related fees. Non-financing interest expense increased 82% to $100 million.
XRX Strengthens Cash Flow & Lowers DebtOperating cash flow was $37 million compared with an outflow of $11 million a year earlier. Free cash flow improved to $11 million from an outflow of $30 million. Cash and cash equivalents were $495 million at June 30, 2026, compared with $512 million at year-end 2025.
The company reduced total debt by $223 million during the quarter. Total debt was $4.22 billion, while gross and net leverage improved to 5.9 times and 5.1 times, respectively, from 7 times and 6 times at the end of the first quarter.
Xerox’s Other Raised Guidance For 2026Adjusted operating income is now projected between $555 million and $605 million, up from $450 million to $500 million. Free cash flow guidance remains approximately $250 million. Xerox also raised its Lexmark gross cost synergy target by $50 million to at least $350 million, with half expected to be realized in 2026.
Currently, Xerox carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings SnapshotsTrane Technologies plc (TT - Free Report) reported impressive second-quarter 2026 results. TT’s adjusted earnings of $4.31 per share outpaced the consensus mark by 0.9% and rose 11.1% from the year-ago quarter’s actual. TT’s total revenues of $6.35 billion surpassed the consensus mark by 2.9% and increased 6.4% year over year.
Rollins, Inc. (ROL - Free Report) posted unimpressive second-quarter 2026 results. ROL’s adjusted earnings of 32 cents per share missed the Zacks Consensus Estimate by 5.9% but rose 6.7% year over year. Total revenues of $1.08 billion fell short of the consensus estimate by 1.7% but increased 7.9% from the year-ago quarter.
Xerox Holdings Corporation delivered a strong Q2, with shares surging 35% on improved profitability, raised guidance, and a robust free cash flow outlook. XRX posted 22% y/y revenue growth to $1.92B, with product sales up 49% and gross margin expanding 720 bps to 35.8%. Management raised FY26 guidance: revenue to $7.6B, adjusted operating income to $555m-$605m, and free cash flow to $250m, reflecting confidence in the turnaround.
For the quarter ended June 2026, Xerox Holdings Corporation (XRX - Free Report) reported revenue of $1.92 billion, up 22% over the same period last year. EPS came in at $0.36, compared to -$0.64 in the year-ago quarter.
The reported revenue represents a surprise of +0.96% over the Zacks Consensus Estimate of $1.9 billion. With the consensus EPS estimate being $0.06, the EPS surprise was +500%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Xerox performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Equipment Sales- Entry: $140 million compared to the $122.42 million average estimate based on two analysts. The reported number represents a change of +174.5% year over year.Revenue- Equipment Sales- Mid-range: $162 million compared to the $215.71 million average estimate based on two analysts. The reported number represents a change of -31.1% year over year.Revenue- Equipment Sales- High-end: $82 million versus the two-analyst average estimate of $39.06 million. The reported number represents a year-over-year change of +86.4%.Revenue- Print and Other- Equipment sales: $387 million compared to the $383.34 million average estimate based on two analysts. The reported number represents a change of +15.2% year over year.Revenue- Equipment Sales: $387 million versus the two-analyst average estimate of $383.34 million. The reported number represents a year-over-year change of +15.2%.Revenue- Print and Other: $1.73 billion compared to the $1.72 billion average estimate based on two analysts. The reported number represents a change of +26.9% year over year.Revenue- Equipment Sales- Other: $3 million versus $6.15 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -50% change.Revenue- IT Solutions: $194 million versus the two-analyst average estimate of $189.79 million.Revenue- Print and Other- Post sale revenue: $1.35 billion compared to the $1.33 billion average estimate based on two analysts. The reported number represents a change of +30.7% year over year.View all Key Company Metrics for Xerox here>>>
Shares of Xerox have returned -14.8% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Xerox Holdings Corporation (XRX - Free Report) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to a loss of $0.64 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +500.00%. A quarter ago, it was expected that this company would post a loss of $0.2 per share when it actually produced a loss of $0.11, delivering a surprise of +45%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Xerox, which belongs to the Zacks Office Supplies industry, posted revenues of $1.92 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.96%. This compares to year-ago revenues of $1.58 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Xerox shares have added about 11.4% since the beginning of the year versus the S&P 500's gain of 6.9%.
What's Next for Xerox?While Xerox has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Xerox was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.10 on $1.88 billion in revenues for the coming quarter and $0.03 on $7.59 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Office Supplies is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Industrial Products sector, Astec Industries (ASTE - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.
This maker of equipment for building, paving and mining is expected to post quarterly earnings of $1.05 per share in its upcoming report, which represents a year-over-year change of +19.3%. The consensus EPS estimate for the quarter has been revised 1.4% higher over the last 30 days to the current level.
Astec Industries' revenues are expected to be $402.5 million, up 21.9% from the year-ago quarter.
2 former tech trailblazers rising like a phoenix Xerox NASDAQ: XRX reported second-quarter 2026 revenue growth driven by its Lexmark acquisition, raised its full-year revenue and adjusted operating-income outlooks, and continued to reduce debt as management focused on stabilizing revenue, improving profitability and lowering leverage.
Chief Executive Officer Louie Pastor said the company views its 2028, 2029 and 2030 debt maturities as “three hurdles” that shape its priorities. “If an initiative doesn't advance one of these three priorities, then we don't pursue it,” Pastor said.
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MarketBeat: Week in Review 4/25 – 4/29Second-quarter revenue totaled $1.92 billion, up 22% year over year, or 21% in constant currency, reflecting Lexmark’s contribution. On a pro forma basis, however, revenue declined nearly 7% from the prior year. Management said the comparison reflected a currency benefit and supplies pull-forward that aided the first quarter, while the underlying year-over-year revenue trajectory modestly improved in the second quarter after accounting for those factors.
Margins Benefit From Tariff Receivables and Synergies Adjusted operating margin rose to 10.6%, an increase of 690 basis points from a year earlier. The result included $105 million of tariff receivables recognized in gross profit following a Supreme Court ruling on IEEPA tariffs. Excluding that benefit, adjusted operating margin would have been 5.1%, still 140 basis points above the prior-year level.
Xerox Holdings Stock is a Value PlayChief Financial Officer Chuck Butler said the tariff receivables represented recovery of costs Xerox had already paid and absorbed over the prior 12 months, rather than a new windfall. Xerox sold the receivable to a third party for $80 million in cash, with the $25 million difference recorded as original issue discount.
Because the claims had not been processed at quarter-end, the $80 million was classified as financing cash flow rather than operating cash flow. Butler said the classification could change after claims processing, but the economics of the cash receipt would not.
Adjusted gross margin was 36.4%, up 710 basis points year over year, while adjusted operating income benefited from Lexmark integration synergies, transformation initiatives and the tariff receivables. Higher incentive compensation, product costs, revenue mix and lower finance-related fees partly offset those gains.
GAAP earnings per share were $0.07, compared with a loss in the year-earlier period, while adjusted EPS was $0.38. Non-financing interest expense increased $45 million year over year to $100 million, primarily due to financing associated with the Lexmark acquisition and the TPG joint venture.
Equipment Weakness Offset by Entry-Level Demand Within the Print & Other segment, equipment revenue was $387 million, up 15% as reported but down 13% on a pro forma basis. Butler attributed the pro forma decline to softer mid-range performance, lower OEM sales and a larger backlog caused by stronger-than-expected demand for entry-level products.
Pastor said entry-level demand exceeded Xerox’s ability to supply products during the quarter, pushing some installations and revenue into later periods. The company expects to work through that backlog during the second half.
In June, Xerox introduced its first hardware under a unified Xerox brand: a new entry-color printer and managed service provider lineup aimed at small workgroups. Pastor said entry-color installs increased during the quarter despite the products having been available for only several weeks.
The company is also emphasizing its internally developed 9-Series mid-range platform. Pastor said Xerox historically sourced all mid-range equipment from third parties, limiting its control over costs, working capital and product competitiveness. The new platform is intended to improve economics for Xerox and offer customers a more favorable total cost of ownership, particularly at higher print speeds.
Print & Other post-sale revenue rose 31% as reported to $1.35 billion, but declined 4% on a pro forma basis, primarily due to lower service, rental and other revenue, lower outsourcing revenue, and lower financing income. Segment margin was 12.7%; excluding tariff receivable benefits, Print segment margin increased 180 basis points year over year.
IT Solutions Billings Rise as Xerox Rebuilds Sales Force IT Solutions gross billings increased 4% year over year in the second quarter and 11% for the first half, while GAAP revenue declined 9%. The company said a growing share of third-party services contracts, SaaS offerings and certain fulfillment contracts are reported on a net basis because Xerox acts as an agent rather than a principal.
IT Solutions gross profit margin increased 160 basis points to 18%, though segment profit margin fell 110 basis points to 3.7% as the company invested in its sales organization. Pastor said Xerox is rebuilding the segment’s sales force, adding technical sales support and strengthening cross-selling efforts, which have pressured near-term signings and profitability.
Management expects IT Solutions billings in the fourth quarter to exceed third-quarter levels on a year-over-year basis, with newer sellers becoming more productive and deal conversion improving. Revenue is expected to align more closely with billings over the next several quarters.
Pastor said customers are investing in endpoint refreshes, infrastructure modernization, data-center capacity and security related to AI workloads. He noted, however, that large data-center buildouts are not Xerox’s primary customer set and can also absorb portions of client technology budgets.
Debt Reduction and Updated Outlook Xerox generated $37 million in operating cash flow and $11 million in free cash flow during the quarter. It ended the period with $552 million in cash equivalents and restricted cash, and total debt of $4.2 billion, down $223 million sequentially.
During the quarter, Xerox repaid $125 million of 13% senior bridge notes at maturity and repurchased $99 million of debt face value, including $93 million of 2028 senior unsecured notes. The company spent $57 million on those open-market repurchases, capturing $42 million of discount.
Gross leverage fell to 5.9 times trailing-12-month EBITDA from 7 times at the end of the first quarter. Net leverage declined to 5.1 times from 6 times. Xerox reduced its 2028 maturity wall by nearly $200 million during the first half of 2026. The company now expects 2026 revenue of approximately $7.6 billion, compared with prior guidance of more than $7.5 billion. It forecast adjusted operating income of $555 million to $605 million, an increase of $105 million from its prior outlook, primarily reflecting the tariff receivables recognized in the second quarter.
Xerox maintained its free-cash-flow forecast of approximately $250 million. Butler said proceeds from the tariff receivable sale were offset by higher restructuring costs, working-capital pressure and additional interest expense related to the TPG joint venture.
The company raised its Lexmark synergy target to at least $350 million from at least $300 million. About half of the anticipated savings are expected in 2026, with the remainder expected in 2027 and 2028. Management also said higher memory prices and elevated oil prices could present modest risk to its updated profit and cash outlook if those conditions persist.
About Xerox (NASDAQ:XRX)Xerox Holdings Corporation NYSE: XRX is a global provider of document management technology and services. The company designs and manufactures a broad range of multifunction printers, production printers, digital presses and related consumables. In addition to its hardware offerings, Xerox delivers software and workflow automation solutions, managed print services and cloud-based document platforms that help organizations optimize their information-intensive processes.
Founded in 1906 as The Haloid Photographic Company, Xerox pioneered xerographic imaging in the late 1940s, launching the first plain-paper copier in 1959.
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NORWALK, Conn.--(BUSINESS WIRE)--Xerox Holdings Corporation (NASDAQ: XRX) today announced its 2026 second-quarter results. “Our second-quarter results gave us another reason for confidence," said Louie Pastor, chief executive officer at Xerox. "We made progress on each of our three strategic priorities: stabilizing revenue, increasing profitability, and reducing leverage. As a result, we are raising both revenue and adjusted operating income guidance, as well as our Lexmark gross synergy target.
Wall Street expects a year-over-year increase in earnings on higher revenues when Xerox Holdings Corporation (XRX - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of +109.4%.
Revenues are expected to be $1.9 billion, up 20.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 40.63% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Xerox?For Xerox, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -100.00%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Xerox will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Xerox would post a loss of$0.2 per share when it actually produced a loss of -$0.11, delivering a surprise of +45.00%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Xerox doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Multi-year agreement brings cutting-edge solutions and real-world integration to the forefront of the Jets organization
, /PRNewswire/ -- The New York Jets have partnered with Xerox, one of the world's most recognized technology leaders, in a new multi-year agreement focused on integrating technology across the team's day-to-day football and business operations. As a central part of the relationship, Xerox solutions are being implemented throughout the organization, including document management, printing infrastructure, and internal workflows across both the training facility and front office.
"We're excited to welcome Xerox into the Jets family," said Jeff Fernandez, Jets Senior Vice President of Business Development + Ventures. "This partnership is about putting their technology to work to support how we operate and improve efficiency across the organization on a daily basis."
Xerox will work closely with the Jets' IT team to showcase how its solutions can enhance productivity, streamline workflows, and support the demands of a fast-paced, high-stakes environment. It will provide the opportunity to highlight how Xerox solutions are applied within a professional sports environment through a custom content feature.
"In professional sports every decision matters and every second counts, and that's exactly the kind of environment where Xerox thrives," said Darren Cassidy, chief marketing officer at Xerox. "By integrating our document management and workflow automation solutions across the Jets training facility and front office, we're helping the organization eliminate friction and focus on winning. Through the Jets Partner Alliance, we're creating connections between great businesses that share a commitment to operational excellence."
The partnership also includes supporting sponsorship of the Jets Partner Alliance, providing Xerox access to a year-round B2B platform connecting leading brands across the team's network, reinforcing a shared focus on driving meaningful B2B relationships through sports.
Xerox will also be featured across Jets gameday platforms at MetLife Stadium and have access to hospitality and partner engagement opportunities throughout the season.
About Xerox Holdings Corporation (NASDAQ: XRX)
Xerox is a global technology company with more than 120 years of innovation leadership. We design, manufacture, deliver, and support print, IT, and digital services for nearly 200,000 clients worldwide. Our integrated, AI-powered portfolio includes managed and production print, document management, workflow automation, cybersecurity, cloud managed services, IT infrastructure, and collaboration technology. Serving clients from growing SMBs to 90 percent of the Fortune 500, Xerox supports leading healthcare, government, financial services, education, legal, retail, and commercial organizations. Through direct sales and a global network of channel partners, we deliver the technology, expertise, and support organizations need to operate efficiently, securely, and at scale.
About New York Jets
The New York Jets were founded in 1959 as the New York Titans, an original member of the American Football League (AFL). The Jets won Super Bowl III, defeating the NFL's Baltimore Colts in 1969. In 1970, the franchise joined the National Football League in the historic AFL–NFL merger that set the foundation for today's league. As part of a commitment to its fan base through innovation and experiences, the team has created initiatives such as, its trailblazing Jets Rewards program, a state-of-the-art mobile app, and 1JD Entertainment, a comprehensive content platform that gives fans greater access to the team across all digital and social platforms. The organization takes great pride in a long-standing, year-round commitment to their community. These programs are funded by the New York Jets Foundation and look to positively influence the lives of young men and women in the tri-state area, particularly in disadvantaged communities. The organization supports the efforts of the Lupus Research Alliance, youth football and numerous established charitable organizations and causes sponsored by the NFL. The New York Jets play in MetLife Stadium, which opened in 2010, and are headquartered at the Atlantic Health Jets Training Center in Florham Park, New Jersey. For more information about the New York Jets visit newyorkjets.com.
Xerox (XRX) remains a speculative 'BUY' with a reiterated $6/share price target, supported by strong turnaround progress and Lexmark synergies. Q1'26 results confirmed revenue up 27%, tripled adjusted EBIT, and improved operating margin, validating the ongoing recovery thesis. XRX continues to address debt, enhance free cash flow, and maintain liquidity, with recent opportunistic debt buybacks and a 3.18% dividend yield.
NORWALK, Conn.--(BUSINESS WIRE)--Xerox Holdings Corporation (NASDAQ: XRX) today announced that Steve Bandrowczak will step down as Chief Executive Officer, and the Board of Directors has appointed Louie Pastor as Chief Executive Officer, effective immediately. “On behalf of the Board and the entire Xerox team, I want to thank Steve for his leadership during a pivotal period for the company, including the successful acquisitions and integrations of Lexmark and ITsavvy,” said Scott Letier, Chairm.
Xerox Holdings Co. (NASDAQ: XRX - Get Free Report) was the recipient of some unusual options trading activity on Wednesday. Stock traders acquired 1,689 put options on the stock. This represents an increase of approximately 1,369% compared to the average volume of 115 put options. Wall Street Analyst Weigh In XRX has been the subject of
NORWALK, Conn.--(BUSINESS WIRE)--Xerox Holdings Corporation (NASDAQ: XRX) will host a live webcast with presentation slides at 8 a.m. ET on Thursday, April 30th, to discuss the company’s 2026 first-quarter results. A news release containing this information will be issued earlier that day at 6:30 a.m. ET.
WHEN:
8 a.m. ET, Thursday, April 30th, 2026
WHAT:
Review of Xerox’s 2025 first-quarter results
WHO:
Louie Pastor, chief executive officer, Xerox
Chuck Butler, chief financial officer, Xerox
WEBCAST:
https://edge.media-server.com/mmc/p/2of89kat
About Xerox Holdings Corporation (NASDAQ: XRX)
Xerox has been redefining the workplace experience for over a century. As a services-led, software-enabled company, we power today’s hybrid workplace through advanced print, digital, and AI-driven technologies. In 2025 Xerox acquired Lexmark - expanding our global footprint, strengthening service capabilities, and equipping us to deliver an even broader portfolio of workplace technologies to our clients. Today, we continue our legacy of innovation to deliver client-centric, digitally driven solutions that meet the needs of a global, distributed workforce. Whether in offices, classrooms, or hospitals, we help our clients thrive in a constantly evolving business landscape.
Note: To receive RSS news feeds, visit https://www.news.xerox.com.
For open commentary, industry perspectives and views, visit http://www.linkedin.com/company/xerox or http://www.youtube.com/XeroxCorp.
Xerox® is a trademark of Xerox Corporation in the United States and/or other countries.
Xerox (XRX) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
NASHVILLE, Tenn.--(BUSINESS WIRE)--RJ Young, a leading provider of office technology solutions and managed services, today announced an expansion of its growing partnership with Xerox. Under this expanded agreement, RJ Young will now provide technical services for all Xerox clients, with sales support for SMB clients, across Tennessee, Mississippi, and West Virginia.
This strategic expansion enhances RJ Young’s ability to deliver best-in-class service, innovative technology solutions, and local expertise to a broader client base throughout the region.
“We’re excited to deepen our relationship with Xerox and extend our service capabilities to support more businesses across these key markets,” said AJ Baggott, President at RJ Young. “Our team is committed to delivering exceptional client experiences, and this expansion allows us to bring our world-class service to even more Xerox clients.”
Through this partnership, Xerox SMB clients in Tennessee, Mississippi, and West Virginia will benefit from RJ Young’s comprehensive service offerings, including managed print and document solutions, proactive maintenance and support, advanced workflow and automation technologies, as well as local service teams with rapid response times.
“RJ Young has consistently demonstrated a strong commitment to service excellence and client satisfaction,” said Karl Boissonneault, President, North America Channels at Xerox. “We are confident that this expanded partnership will deliver increased value and support to our clients across the region.”
RJ Young’s investment in local infrastructure, technical expertise, and customer support ensures a seamless transition for Xerox clients, with no disruption to service and an enhanced overall experience.
About RJ Young
RJ Young is a leading provider of business technology solutions, specializing in managed print services, copiers and multifunction devices, and workplace technology solutions. With a strong focus on service excellence and local support, RJ Young helps organizations improve efficiency, productivity, and performance. With nearly 30 locations and more than 650 team members, RJ Young has supported businesses nationwide since 1955. Learn more at rjyoung.com.
NORWALK, Conn.--(BUSINESS WIRE)--Xerox today announced the launch of Xerox® IT as a Service, an AI-powered ServiceNow platform that transforms how organizations operate and manage technology. Xerox ITaaS unifies managed services, automation, procurement, and real-time intelligence into a single IT operating system, enabling organizations to move from reactive support models to autonomous operations. As organizations face increasing complexity, from distributed infrastructure and rising cyber th.
NORWALK, Conn.--(BUSINESS WIRE)--Xerox Holdings Corporation (NASDAQ: XRX) today announced its 2026 first-quarter results. “This quarter's results demonstrated tangible progress as revenue and profit trajectory improved, adjusted1 operating margin expanded, and we further enhanced our liquidity,” said Louie Pastor, chief executive officer at Xerox. “When I took this role, I was unequivocal that we must be clear about our priorities — stabilize revenue, increase profitability and reduce leverage.
Xerox Holdings Corporation (XRX - Free Report) came out with a quarterly loss of $0.11 per share versus the Zacks Consensus Estimate of a loss of $0.2. This compares to a loss of $0.06 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +45.00%. A quarter ago, it was expected that this company would post earnings of $0.15 per share when it actually produced a loss of $0.1, delivering a surprise of -166.67%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Xerox, which belongs to the Zacks Office Supplies industry, posted revenues of $1.85 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.97%. This compares to year-ago revenues of $1.46 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Xerox shares have lost about 33.8% since the beginning of the year versus the S&P 500's gain of 4.2%.
What's Next for Xerox?While Xerox has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Xerox was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.08 on $1.94 billion in revenues for the coming quarter and $0.29 on $7.51 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Office Supplies is currently in the bottom 1% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Industrial Products sector, Watts Water (WTS - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.
This maker of valves for plumbing, heating and water needs is expected to post quarterly earnings of $2.72 per share in its upcoming report, which represents a year-over-year change of +14.8%. The consensus EPS estimate for the quarter has been revised 2% lower over the last 30 days to the current level.
Watts Water's revenues are expected to be $632.09 million, up 13.3% from the year-ago quarter.
Xerox Holdings Corporation (XRX - Free Report) reported $1.85 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 26.7%. EPS of -$0.11 for the same period compares to -$0.06 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.78 billion, representing a surprise of +3.97%. The company delivered an EPS surprise of +45%, with the consensus EPS estimate being -$0.20.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Xerox performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Equipment Sales- Entry: $135 million compared to the $94.93 million average estimate based on two analysts. The reported number represents a change of +214% year over year.Revenue- Equipment Sales- Mid-range: $198 million versus the two-analyst average estimate of $198.23 million. The reported number represents a year-over-year change of 0%.Revenue- Equipment Sales- High-end: $40 million compared to the $33.17 million average estimate based on two analysts. The reported number represents a change of 0% year over year.Revenue- Print and Other- Equipment sales: $378 million versus $330.25 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +33.1% change.Revenue- Equipment Sales: $378 million versus $330.25 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +33.1% change.Revenue- Print and Other: $1.69 billion compared to the $1.59 billion average estimate based on two analysts. The reported number represents a change of +30.8% year over year.Revenue- Equipment Sales- Other: $5 million versus the two-analyst average estimate of $3.93 million. The reported number represents a year-over-year change of +66.7%.Revenue- IT Solutions: $156 million versus $190.57 million estimated by two analysts on average.Revenue- Print and Other- Post sale revenue: $1.31 billion versus $1.35 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +30.1% change.View all Key Company Metrics for Xerox here>>>
Shares of Xerox have returned +24.6% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.
Key Takeaways XRX beat Q1 estimates as revenue rose 26.7% YoY to $1.85B and loss narrowed to 11 cents per share. XRX saw strong growth in equipment sales and post-sale revenues, driving broad segment gains. XRX improved operating income and margin, while guiding 2026 revenue above $7.5B and solid cash flow. Xerox Holdings (XRX - Free Report) reported better-than-expected first-quarter 2026 results.
Quarterly adjusted loss came in at 11 cents per share compared to the Zacks Consensus Estimate loss of 20 cents and decreased 83.3% from the year-ago quarter. Revenues of $1.85 billion beat the consensus estimate by 4% and increased 26.7% on a year-over-year basis.
The impressive results had a positive impact on the market, as the company’s shares have gained 15.6% since the earnings release on April 30.
Image Source: Zacks Investment Research
The company’s shares have depreciated 51.9% over the past year compared with the Office Supplies industry’s 27.9% decline and the S&P 500’s 33.3% rise.
Q1 Revenues Details of XRXPost-sale revenues totaled $1.31 billion, up 30.1% year over year on a reported basis and 26.5% at cc, lagging our estimate of $1.46 billion. Equipment sales rose 33.1% year over year on a reported basis and 30.7% at cc to $378 million, beating our estimate of $315.8 million.
The Print and Other segment’s revenues totaled $1.69 billion, up 30.8% year over year on a reported basis and down 3.5% at cc, beating our estimate of $1.59 billion.
Sales revenues amounted to $920 million, up 65.2% year over year on a reported basis and declined 2% at cc. Services, maintenance, rentals and other revenues amounted to $926 million, up 3% on a year over year basis.
XRX’s Operating PerformanceAdjusted operating income totaled $72 million, improved more than 100% on a year-over-year basis. The adjusted operating margin was 3.9%, up 240 basis points year over year.
XRX’s Key Balance Sheet and Cash Flow FiguresXerox exited the first-quarter with a cash and cash equivalent balance of $585 million compared with $512 million in the December-end quarter of 2025. The company’s net cash provided by operating activities and free cash flow for the quarter were $144 million and $165 million, respectively.
XRX’s 2026 GuidanceFor 2026, the adjusted operating income is projected to be in the band of $450-$500 million. The company anticipates free cash flow of approximately $250 million.
Xerox expects the 2026 revenues to be above $7.5 billion.
Xerox’s Zacks RankXRX currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings SnapshotManpowerGroup (MAN - Free Report) reported impressive first-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate.
MAN’s adjusted earnings (excluding 46 cents from non-recurring items) were 51 cents per share, which surpassed the Zacks Consensus Estimate by 1 cent and increased 16% from the year-ago quarter’s level. Total revenues were $4.5 billion, which beat the consensus estimate by $171.4 million and improved 10.3% on a year-over-year basis.
Robert Half Inc. (RHI - Free Report) reported first-quarter fiscal 2026 earnings of 14 cents per share, in line with the Zacks Consensus Estimate and down 17.6% from the year-ago quarter.
Quarterly revenues were $1.3 billion, down 3.8% year over year and slightly below the consensus mark of $1.31 billion, implying a 0.9% miss. Management pointed to strengthening same-day, constant-currency trends in talent solutions as the quarter progressed and into early April, with contract bill rates up 2.6% from a year ago on an adjusted basis.
PRAGUE--(BUSINESS WIRE)--STARTEEPO Invest (“STARTEEPO”), an alternative investment fund focused on public equity opportunities, today announced that it has acquired a significant ownership position in Xerox Holdings Corporation (“Xerox” or the “Company”). As of the date of this release, STARTEEPO and its affiliates beneficially owns 6.6 million shares of Xerox (excluding options), representing approximately 5.05% of the Company's outstanding common stock. STARTEEPO has filed a Schedule 13D with.
NORWALK, Conn.--(BUSINESS WIRE)--Xerox Holdings Corporation (NASDAQ: XRX) announced today that its board of directors declared a quarterly dividend of $0.025 per share on Xerox Holdings Corporation Common Stock. The dividend is payable on July 31, 2026, to shareholders of record on June 30, 2026. The board also declared a quarterly dividend of $20.00 per share on the outstanding Xerox Holdings Series A Convertible Perpetual Preferred Stock. The dividend is payable on July 1, 2026, to shareholde.
PRAGUE--(BUSINESS WIRE)--STARTEEPO Invest (“STARTEEPO”), an alternative investment fund focused on public equity opportunities, today announced that it has increased its beneficial ownership position in Xerox Holdings Corporation (“Xerox” or the “Company”) to more than 6% of the Company's outstanding common stock, as disclosed in an amended Schedule 13D filing with the U.S. Securities and Exchange Commission. Following the transaction, STARTEEPO beneficially owns approximately 8.0 million Xerox.
