Xerox (NASDAQ:XRX) Stock Rating Upgraded by Zacks Research

Key Points

• Zacks Research upgraded Xerox from "strong sell" to "hold", but the analyst consensus remains a "Reduce" with an average target price of $2.50 and mixed views from other firms (Weiss: sell; Citi: neutral).
• Q1 results beat estimates — revenue $1.85B (up ~27% YoY) and EPS -$0.11 vs. -$0.20 est — triggering a rally fueled by CEO optimism, heavy call buying and short-covering activity.
• Financial risks remain: Xerox still shows negative net margins, a high debt-to-equity ratio (~14.0) and a small market cap, which heightens the potential for volatility and downside if operating profits don't improve.

Xerox (NASDAQ:XRX - Get Free Report) was upgraded by investment analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued to investors on Thursday,Zacks.com reports.

Several other analysts have also recently commented on XRX. Weiss Ratings restated a "sell (d-)" rating on shares of Xerox in a research report on Monday. Citigroup reiterated a "neutral" rating and issued a $2.50 target price (down from $3.50) on shares of Xerox in a report on Friday, January 30th. Two research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Xerox presently has a consensus rating of "Reduce" and an average target price of $2.50.

Xerox Price Performance

Xerox stock opened at $2.70 on Thursday. Xerox has a 1 year low of $1.19 and a 1 year high of $6.80. The firm has a 50 day moving average price of $1.56 and a 200 day moving average price of $2.27. The company has a market cap of $353.11 million, a price-to-earnings ratio of -0.33 and a beta of 2.28. The company has a debt-to-equity ratio of 14.04, a quick ratio of 0.79 and a current ratio of 1.18.

Xerox (NASDAQ:XRX - Get Free Report) last released its earnings results on Thursday, April 30th. The information technology services provider reported ($0.11) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.20) by $0.09. The firm had revenue of $1.85 billion during the quarter, compared to the consensus estimate of $1.78 billion. Xerox had a negative net margin of 14.09% and a negative return on equity of 12.08%. Xerox's revenue was up 26.7% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.06) earnings per share. Sell-side analysts predict that Xerox will post 0.29 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. S Harris Financial Group LLC acquired a new position in Xerox during the 4th quarter valued at about $25,000. Captrust Financial Advisors acquired a new position in Xerox during the 4th quarter valued at about $26,000. Williams & Novak LLC acquired a new position in Xerox during the 4th quarter valued at about $27,000. Arkadios Wealth Advisors acquired a new stake in shares of Xerox in the 4th quarter valued at approximately $35,000. Finally, Levin Capital Strategies L.P. acquired a new stake in shares of Xerox in the 4th quarter valued at approximately $36,000. Institutional investors and hedge funds own 85.36% of the company's stock.

Key Xerox News

Here are the key news stories impacting Xerox this week:

• Positive Sentiment: Q1 revenue and EPS vs. estimates: Xerox reported Q1 revenue of about $1.85B (up ~27% YoY) and reported EPS of -$0.11, beating consensus revenue and EPS estimates — a key near-term catalyst for the rally. Xerox Releases First-Quarter Results
• Positive Sentiment: Market reaction / momentum: Analysts and headlines highlighted the beat and CEO optimism, driving intraday gains and a breakout after weeks of being heavily shorted. News coverage points to the earnings beat and management tone as the main reasons for the surge. Why Xerox Stock Is Surging On Friday?
• Positive Sentiment: Short-squeeze and options activity: High short interest plus heavy call buying and unusual options flows amplified the move higher — traders report spikes in call volume and short-covering that accelerated the rally. Short Squeeze And Earnings
• Neutral Sentiment: Product/service update: Xerox launched “Xerox IT as a Service” targeting SMBs — a growth initiative that supports revenue diversification but will take time to scale. Xerox Launches Xerox IT as a Service
• Neutral Sentiment: Earnings detail and management commentary: The Q1 earnings transcript and slide deck show management is focused on stabilizing revenue, expanding adjusted operating margin and improving liquidity — useful for assessing sustainability of the recovery. Xerox (XRX) Q1 2026 Earnings Transcript
• Negative Sentiment: Profitability and leverage remain concerns: Xerox is still reporting negative net margins and remains highly leveraged (debt-to-equity is elevated), which limits upside unless operating profits improve. Xerox Reports Q1 Loss, Tops Revenue Estimates
• Negative Sentiment: Contrarian/options signals: Earlier spikes in put buying and very choppy, high-volume trading indicate continued volatility and the possibility of sharp reversals as shorts re-enter or momentum fades.

About Xerox

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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