Zacks Research Comments on Xerox's Q2 Earnings (NASDAQ:XRX)

Key Points

• Zacks Research cut its Q2 2026 EPS estimate for Xerox to $0.12 (from $0.16), trimmed several near‑term forecasts and kept a Strong Sell rating while leaving FY2027 around $1.12 per share.
• Xerox last reported a Q1 ($0.10) EPS loss and a revenue miss, showing negative margins and heavy leverage (debt-to-equity 8.94), with the stock trading near its 52‑week low (~$1.26) and a market cap of about $162 million.
• Options activity shows heightened bearish sentiment—investors bought roughly 1,689 put contracts (≈1,369% above typical put volume), which could signal further downside or increased hedging interest.

Xerox Holdings Co. (NASDAQ:XRX - Free Report) - Research analysts at Zacks Research lowered their Q2 2026 earnings per share estimates for shares of Xerox in a research note issued to investors on Thursday, April 2nd. Zacks Research analyst Team now anticipates that the information technology services provider will post earnings per share of $0.12 for the quarter, down from their previous estimate of $0.16. Zacks Research has a "Strong Sell" rating on the stock. The consensus estimate for Xerox's current full-year earnings is $1.07 per share. Zacks Research also issued estimates for Xerox's Q3 2026 earnings at $0.13 EPS, Q4 2026 earnings at $0.36 EPS, Q1 2027 earnings at $0.15 EPS, Q4 2027 earnings at $0.56 EPS, FY2027 earnings at $1.12 EPS and Q1 2028 earnings at $0.03 EPS.

Xerox (NASDAQ:XRX - Get Free Report) last issued its quarterly earnings data on Thursday, January 29th. The information technology services provider reported ($0.10) EPS for the quarter, missing analysts' consensus estimates of $0.15 by ($0.25). The firm had revenue of $2.03 billion during the quarter, compared to analyst estimates of $2.08 billion. Xerox had a negative net margin of 14.65% and a negative return on equity of 8.26%. The business's quarterly revenue was up 25.7% compared to the same quarter last year. During the same period in the prior year, the company earned $0.36 earnings per share.

Other analysts have also recently issued research reports about the stock. Weiss Ratings initiated coverage on shares of Xerox in a research note on Wednesday, January 28th. They issued a "sell (d-)" rating for the company. Citigroup reaffirmed a "neutral" rating and set a $2.50 target price (down from $3.50) on shares of Xerox in a report on Friday, January 30th. One analyst has rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Sell" and an average target price of $2.50.

Xerox Stock Performance

Shares of Xerox stock opened at $1.26 on Friday. The company has a debt-to-equity ratio of 8.94, a quick ratio of 0.79 and a current ratio of 1.11. The firm has a 50-day moving average of $1.80 and a 200-day moving average of $2.57. Xerox has a 52-week low of $1.22 and a 52-week high of $6.80. The stock has a market cap of $162.06 million, a PE ratio of -0.15 and a beta of 1.80.

Xerox Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Tuesday, March 31st will be issued a $0.025 dividend. This represents a $0.10 dividend on an annualized basis and a dividend yield of 7.9%. The ex-dividend date of this dividend is Tuesday, March 31st. Xerox's dividend payout ratio (DPR) is currently -1.22%.

Hedge Funds Weigh In On Xerox

A number of institutional investors have recently modified their holdings of the business. Goldman Sachs Group Inc. boosted its stake in Xerox by 339.3% in the fourth quarter. Goldman Sachs Group Inc. now owns 9,294,446 shares of the information technology services provider's stock valued at $22,028,000 after buying an additional 7,178,915 shares in the last quarter. Marshall Wace LLP raised its stake in Xerox by 71.0% during the second quarter. Marshall Wace LLP now owns 3,928,444 shares of the information technology services provider's stock worth $20,703,000 after acquiring an additional 1,630,999 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in shares of Xerox by 32.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,498,232 shares of the information technology services provider's stock worth $8,291,000 after acquiring an additional 854,119 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of Xerox by 24.4% in the 4th quarter. Geode Capital Management LLC now owns 2,915,580 shares of the information technology services provider's stock valued at $6,911,000 after purchasing an additional 571,715 shares in the last quarter. Finally, Two Sigma Investments LP boosted its stake in shares of Xerox by 43.2% in the 3rd quarter. Two Sigma Investments LP now owns 2,476,689 shares of the information technology services provider's stock valued at $9,312,000 after purchasing an additional 746,582 shares in the last quarter. Institutional investors and hedge funds own 85.36% of the company's stock.

Key Headlines Impacting Xerox

Here are the key news stories impacting Xerox this week:

• Positive Sentiment: Zacks raised its Q1 2027 EPS estimate to $0.15 from $0.09 — a modest upside revision that could be a one-quarter bright spot amid broader cuts.
• Neutral Sentiment: The consensus full-year EPS estimate cited in the reports remains about $1.07 per share, keeping market expectations broadly unchanged. MarketBeat XRX
• Negative Sentiment: Zacks cut several near-term EPS forecasts: Q2 2026 to $0.12 (from $0.16), Q3 2026 to $0.13 (from $0.17), and Q4 2026 to $0.36 (from $0.48). They also trimmed FY2027 (to $1.12 from $1.17) and Q4 2027/Q1 2028 estimates — signaling weaker expected profitability across 2026–2027.
• Negative Sentiment: Zacks also lowered its Q1 2028 EPS view to $0.03 (from $0.08 previously) and maintained a "Strong Sell" rating on Xerox, which reinforces negative analyst sentiment and may pressure the stock further.
• Negative Sentiment: Unusually large put-option buying: investors purchased 1,689 put contracts (≈1,369% above typical put volume), a sign of elevated bearish positioning or hedging against further downside. Options Article

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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