Zacks Research Issues Negative Estimate for Xerox Earnings

Key Points

• Zacks Research cut its Q1 2026 EPS estimate for Xerox to ($0.13) from ($0.01) and assigned the stock a Strong Sell rating.
• Xerox recently missed quarterly expectations (reported EPS ($0.10) vs. $0.15 expected), showed negative ROE and net margin despite 25.7% revenue growth year-over-year, and carries very high leverage (debt-to-equity ~8.94).
• Overall analyst sentiment is bearish—MarketBeat shows an average "Sell" rating with a $2.50 target—while shares trade near $1.24 and the company offers a small quarterly dividend that implies an 8.1% yield.

Xerox Holdings Co. (NASDAQ:XRX - Free Report) - Research analysts at Zacks Research decreased their Q1 2026 earnings estimates for shares of Xerox in a research note issued on Thursday, April 2nd. Zacks Research analyst Team now forecasts that the information technology services provider will post earnings per share of ($0.13) for the quarter, down from their prior forecast of ($0.01). 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 FY2026 earnings at $0.48 EPS, Q2 2027 earnings at $0.13 EPS, Q3 2027 earnings at $0.28 EPS and FY2028 earnings at $1.04 EPS.

Xerox (NASDAQ:XRX - Get Free Report) last issued its earnings results 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). Xerox had a negative return on equity of 8.26% and a negative net margin of 14.65%.The business had revenue of $2.03 billion during the quarter, compared to analysts' expectations of $2.08 billion. During the same quarter in the previous year, the business earned $0.36 EPS. Xerox's revenue for the quarter was up 25.7% compared to the same quarter last year.

A number of other research firms have also recently issued reports on XRX. Weiss Ratings assumed coverage on shares of Xerox in a research report on Wednesday, January 28th. They set a "sell (d-)" rating on the stock. Citigroup reiterated a "neutral" rating and set a $2.50 price target (down from $3.50) on shares of Xerox in a research report on Friday, January 30th. One investment analyst has rated the stock with a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Sell" and an average target price of $2.50.

Xerox Trading Up 0.4%

Shares of XRX stock traded up $0.01 during mid-day trading on Tuesday, reaching $1.24. The stock had a trading volume of 1,648,519 shares, compared to its average volume of 3,463,518. The stock's 50-day moving average price is $1.76 and its two-hundred day moving average price is $2.52. Xerox has a 52-week low of $1.21 and a 52-week high of $6.80. The firm has a market capitalization of $158.85 million, a PE ratio of -0.15 and a beta of 1.80. The company has a current ratio of 1.11, a quick ratio of 0.79 and a debt-to-equity ratio of 8.94.

Xerox Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, April 30th. Stockholders of record on Tuesday, March 31st will be paid a $0.025 dividend. This represents a $0.10 annualized dividend and a dividend yield of 8.1%. The ex-dividend date is Tuesday, March 31st. Xerox's dividend payout ratio is currently -1.22%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in XRX. S Harris Financial Group LLC purchased a new position in shares of Xerox during the fourth quarter valued at approximately $25,000. Captrust Financial Advisors purchased a new position in shares of Xerox during the second quarter valued at approximately $58,000. Williams & Novak LLC purchased a new position in shares of Xerox during the fourth quarter valued at approximately $27,000. Socha Financial Group LLC purchased a new position in shares of Xerox during the third quarter valued at approximately $43,000. Finally, Boothbay Fund Management LLC purchased a new position in shares of Xerox during the third quarter valued at approximately $43,000. Institutional investors own 85.36% of the company's stock.

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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