Xerox (XRX)
NASDAQ:XRX
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Xerox
(NASDAQ:XRX)
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Rating:47Neutral
Price Target:
$1.50
▲(16.28% Upside)
Action:ReiteratedDate:03/18/26
The score is held down primarily by weak financial performance (large recent losses and high leverage with a thin equity buffer) and bearish technicals (price below key moving averages with negative MACD). Guidance and synergy plans provide a potential improvement path, and the high dividend yield offers some support, but near-term execution and cash/leverage risks remain significant.
Positive Factors
Recurring annuity revenue from supplies & services
Xerox’s business generates durable annuity streams from supplies, service contracts, MPS and software subscriptions tied to an installed base. These recurring revenues deliver predictable cash flow, enhance customer stickiness, and support margin stability versus one-time equipment sales.
Negative Factors
Very high leverage and thin equity cushion
Leverage (pro forma gross ~6.7x TTM EBITDA) and a shrunken equity base materially constrain financial flexibility. High debt raises interest and refinancing risk, limits strategic optionality, and makes execution on synergy-driven deleveraging critical to avoid sustained credit stress if cash flow weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring annuity revenue from supplies & services
Xerox’s business generates durable annuity streams from supplies, service contracts, MPS and software subscriptions tied to an installed base. These recurring revenues deliver predictable cash flow, enhance customer stickiness, and support margin stability versus one-time equipment sales.
Read all positive factors
Xerox (XRX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$165.92M
Dividend Yield17.14%
Average Volume (3M)3.58M
Price to Earnings (P/E)―
Beta (1Y)1.98
Revenue Growth3.67%
EPS Growth29.09%
CountryUS
Employees17,600
SectorIndustrials
Sector Strength72
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.10
Shares Outstanding128,617,800
10 Day Avg. Volume3,230,082
30 Day Avg. Volume3,578,390
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.46
Price to Sales (P/S)0.04
P/FCF Ratio1.17
Enterprise Value/Market Cap23.49
Enterprise Value/Revenue0.55
Enterprise Value/Gross Profit1.51
Enterprise Value/Ebitda-24.82
Forecast
1Y Price Target
$2.50Price Target Upside93.80% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.46
Revenue Forecast (FY)$7.58B
Xerox Business Overview & Revenue Model
Company Description
Xerox Holdings Corporation, a workplace technology company, designs, develops, and sells document management systems and solutions in the United States, Europe, Canada, and internationally. It offers workplace solutions, including desktop monochro...
How the Company Makes Money
Xerox makes money primarily by selling printing and imaging equipment and by generating recurring revenue tied to the ongoing use and servicing of that installed base. Key revenue streams include: (1) Equipment sales: revenue from the sale of offi...
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 Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: acquisitions (Lexmont, IT Savvy) drove reported revenue growth, strong IT Solutions momentum, tangible integration synergies, AI-driven efficiencies, and a clear 2026 profitability target. However, organic revenue declines, margin compression from tariffs and product cost inflation, weakened free cash flow, high leverage (6.7x), and supply/DRAM price risk are material concerns. Management laid out detailed mitigation steps, synergy targets, and a deleveraging plan that provide a credible path to improvement, but near-term risks and cash/leverage pressures temper the outlook.Positive Updates
Reported Revenue Growth Driven by Acquisitions
Q4 revenue of $2.03B grew ~26% year-over-year (24% in constant currency) and full-year revenue of $7.02B grew ~13% (12% CC), with growth primarily driven by the Lexmont and IT Savvy acquisitions.
Negative Updates
Organic Revenue Declines Excluding Acquisitions
On a pro forma/organic basis, revenue trends were weaker: Q4 pro forma print/post-sale revenues declined (~9% pro forma; ~5% excluding reinvention effects) and full-year revenue excluding acquisition benefits declined ~8%.
Read all updates
Q4-2025 Updates
Positive
Negative
Reported Revenue Growth Driven by Acquisitions
Q4 revenue of $2.03B grew ~26% year-over-year (24% in constant currency) and full-year revenue of $7.02B grew ~13% (12% CC), with growth primarily driven by the Lexmont and IT Savvy acquisitions.
Read all positive updates
Company Guidance
Management guided to 2026 revenue of greater than $7.5 billion (about 7% growth vs. 2025, inclusive of a full year of Lexmark) and adjusted operating income of $450–$500 million (more than $200 million improvement vs. 2025), driven by $150–$200 million of integration synergies and $100 million of reinvention savings; free cash flow is expected to be approximately $250 million (assuming roughly $335 million of forward‑flow benefits and slightly over $1 billion of receivables by year‑end), with net interest expense of ~$290 million and ~$160 million of pension contributions, while management also flagged a ~$50 million revenue and ~$40 million operating income headwind from XFS, tariffs as an H1 headwind/H2 tailwind, memory cost pressure impacting IT (and modestly print in H1, more in H2), and reiterated synergy targets of at least $300 million from Lexmark plus $1 billion+ of profit improvement and a medium‑term leverage target of ~3x TTM EBITDA (current pro forma gross leverage 6.7x; cash $565M; total debt $4.2B).Xerox Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
34
Negative
Cash Flow
52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.02B | 6.22B | 6.89B | 7.11B | 7.04B |
| Gross Profit | 2.59B | 1.96B | 2.31B | 2.32B | 2.40B |
| EBITDA | -157.00M | -822.00M | 291.00M | 36.00M | -49.00M |
| Net Income | -1.03B | -1.32B | 1.00M | -322.00M | -455.00M |
Balance Sheet | |||||
| Total Assets | 9.82B | 8.37B | 10.01B | 11.54B | 13.22B |
| Cash, Cash Equivalents and Short-Term Investments | 512.00M | 576.00M | 519.00M | 1.04B | 1.84B |
| Total Debt | 4.25B | 3.59B | 3.46B | 3.96B | 4.54B |
| Total Liabilities | 9.15B | 7.06B | 7.24B | 7.97B | 8.77B |
| Stockholders Equity | 658.00M | 1.29B | 2.75B | 3.56B | 4.44B |
Cash Flow | |||||
| Free Cash Flow | 259.00M | 467.00M | 649.00M | 102.00M | 561.00M |
| Operating Cash Flow | 350.00M | 511.00M | 686.00M | 159.00M | 629.00M |
| Investing Cash Flow | -698.00M | -198.00M | -5.00M | -78.00M | -85.00M |
| Financing Cash Flow | 278.00M | -271.00M | -1.20B | -822.00M | -1.31B |
Xerox Technical Analysis
Negative
1.29
Price Trends
1.81
Negative
2.20
Negative
3.16
Negative
Market Momentum
-0.15
Positive
32.89
Neutral
11.35
Positive
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 1.29 is below the 20-day moving average (MA) of 1.50, below the 50-day MA of 1.81, and below the 200-day MA of 3.16, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 32.89 is Neutral, neither overbought nor oversold. The STOCH value of 11.35 is Positive, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $21.03B | 21.25 | 15.49% | 2.78% | -1.97% | 48.61% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $2.13B | 6.07 | 13.41% | ― | -4.13% | 2143.48% | |
53 Neutral | $2.96B | 26.53 | 20.43% | ― | -1.90% | ― | |
47 Neutral | $165.92M | -0.29 | -107.19% | 17.14% | 3.67% | 29.09% | |
45 Neutral | $149.72M | 2.63 | 126.78% | ― | -4.93% | 18.65% | |
44 Neutral | $198.03M | -1.68 | -20.84% | ― | -12.45% | -142.77% |
* Industrials Sector Average
XRX
Xerox
1.29
-2.72
-67.83%
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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.