Xerox (NASDAQ:XRX) Releases Earnings Results, Beats Estimates By $0.09 EPS

Xerox (NASDAQ:XRX) announced its earnings results on Thursday. The information technology services provider reported $0.02 EPS for the quarter, beating analysts’ consensus estimates of ($0.07) by $0.09, FiscalAI reports. The business had revenue of $1.87 billion during the quarter. Xerox had a negative net margin of 11.93% and a positive return on equity of 17.61%. Xerox’s quarterly revenue was down 4.7% on a year-over-year basis. During the same period in the previous year, the company posted $0.20 earnings per share.

Here are the key takeaways from Xerox’s conference call:

• Xerox lowered 2026 adjusted operating income guidance to $450–$475 million from $555–$605 million and cut free cash flow guidance to $50–$100 million from approximately $250 million. The company cited higher memory, oil and tariff-related costs, unfavorable equipment mix, weaker print-market demand and IT Solutions underperformance.
• The board suspended common and preferred dividends, preserving approximately $28 million in annual cash for liquidity and debt reduction. Year-end gross leverage is now expected at about 5.6x, versus the prior target of below 5x, extending the timeline for deleveraging.
• Print trends improved, with Q3 equipment revenue rising 3% organically—the first year-over-year growth in more than three years—and installs increasing 9%. Entry and production equipment growth offset mid-range declines, leading management to believe Xerox gained market share.
• IT Solutions revenue declined 17% year over year and segment margin fell to 4.4%, as slower sales-force ramp-up, delayed customer decisions and tighter supplier terms reduced conversion. Management expects improvement in Q4 but acknowledged that the business requires further work.
• Xerox announced a debt exchange covering approximately $174 million of 2028 notes, reducing total debt by about $53 million and extending nearly one-third of those maturities to 2030. Management also highlighted roughly $100 million of incremental Lexmark synergies expected in 2027, alongside additional pricing and cost-reduction initiatives.

Xerox Price Performance

Shares of NASDAQ:XRX opened at $1.50 on Friday. Xerox has a 52 week low of $1.19 and a 52 week high of $3.78. The company has a current ratio of 1.18, a quick ratio of 0.85 and a debt-to-equity ratio of 12.58. The firm has a market capitalization of $197.64 million, a P/E ratio of -0.21 and a beta of 2.45. The firm’s 50 day moving average is $3.01 and its two-hundred day moving average is $2.54.

Xerox Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Wednesday, September 30th will be paid a $0.0250 dividend. This represents a $0.10 dividend on an annualized basis and a yield of 6.6%. The ex-dividend date is Wednesday, September 30th. Xerox’s dividend payout ratio (DPR) is presently -1.36%.

Hedge Funds Weigh In On Xerox

Several hedge funds have recently made changes to their positions in the business. Yousif Capital Management LLC grew its position in Xerox by 34.3% during the third quarter. Yousif Capital Management LLC now owns 44,589 shares of the information technology services provider’s stock valued at $141,000 after purchasing an additional 11,396 shares in the last quarter. Sowell Financial Services LLC bought a new stake in Xerox in the third quarter worth $34,000. Investors Asset Management of Georgia Inc. GA ADV acquired a new stake in shares of Xerox in the third quarter worth about $607,000. Vontobel Holding Ltd. raised its stake in shares of Xerox by 41.5% in the 3rd quarter. Vontobel Holding Ltd. now owns 22,840 shares of the information technology services provider’s stock valued at $72,000 after acquiring an additional 6,700 shares in the last quarter. Finally, Integrated Wealth Concepts LLC bought a new stake in Xerox during the second quarter worth approximately $28,000. Institutional investors and hedge funds own 85.36% of the company’s stock.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on XRX. Citigroup downgraded shares of Xerox from a “neutral” rating to a “sell” rating and reduced their price target for the company from $3.45 to $2.50 in a report on Thursday, October 8th. Noble Financial initiated coverage on Xerox in a research note on Tuesday, August 18th. They issued an “outperform” rating and a $5.00 price objective on the stock. Needham & Company LLC set a $5.00 target price on Xerox in a research report on Tuesday, August 18th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Xerox in a research report on Thursday, October 22nd. One equities research analyst has rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, Xerox currently has a consensus rating of “Reduce” and an average target price of $4.17.

Trending Headlines about Xerox

Here are the key news stories impacting Xerox this week:

• Positive Sentiment: Xerox reported third-quarter adjusted EPS of $0.02, ahead of the consensus estimate of a $0.07 loss, while revenue of approximately $1.87 billion was broadly in line with expectations. Xerox Q3 results
• Positive Sentiment: The company announced a debt exchange covering about $174 million of 2028 senior notes, extending maturities to 2030 and reducing principal by approximately $53 million. The transaction is intended to preserve cash and lower leverage. Xerox debt exchange
• Neutral Sentiment: Xerox maintained its full-year revenue outlook despite quarterly revenue falling 4.7% from the prior year, suggesting management expects stabilization but not near-term sales growth. Xerox revenue outlook
• Negative Sentiment: Xerox lowered its 2026 adjusted operating-income forecast to approximately $450 million-$475 million, a reduction of as much as $130 million, and also cut its free-cash-flow forecast. The company cited ongoing business headwinds, undermining confidence in its turnaround plan. Xerox cuts forecasts
• Negative Sentiment: The third-quarter loss widened compared with the prior year, and Xerox’s board suspended dividend payments, removing an important component of the investment case for income-focused shareholders. Xerox dividend suspension
• Negative Sentiment: Rosen Law Firm and Levi & Korsinsky announced investigations into potential securities claims, adding legal and reputational risk after the forecast revisions. Xerox investor investigation

Xerox Company Profile

Xerox Holdings Corporation (NASDAQ:XRX) is a technology and workplace solutions company that provides printing, document management and digital services to businesses and other organizations. The company serves customers across a range of industries, including government, education, healthcare, financial services and professional services.

Xerox offers office printers, multifunction devices, production printers and related supplies, software and support services. Its portfolio also includes document workflow and content-management solutions designed to help organizations digitize, automate and manage business processes.