Zacks Research Has Negative Outlook for Xerox Q2 Earnings

Xerox Holdings Co. (NASDAQ:XRX) – Zacks Research reduced their Q2 2026 EPS estimates for shares of Xerox in a note issued to investors on Thursday, April 2nd. Zacks Research analyst Team now expects that the information technology services provider will earn $0.12 per share for the quarter, down from their prior estimate of $0.16. Zacks Research currently 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) last posted its quarterly 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). The business had revenue of $2.03 billion for the quarter, compared to the consensus estimate of $2.08 billion. Xerox had a negative return on equity of 8.26% and a negative net margin of 14.65%.The company’s revenue for the quarter was up 25.7% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.36 EPS.

Several other equities research analysts have also commented on XRX. Weiss Ratings assumed coverage on Xerox in a research report on Wednesday, January 28th. They set a “sell (d-)” rating on the stock. Citigroup reissued a “neutral” rating and issued a $2.50 price target (down from $3.50) on shares of Xerox in a research note on Friday, January 30th. One research analyst has rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, Xerox currently has a consensus rating of “Sell” and a consensus price target of $2.50.

Xerox Stock Performance

Shares of NASDAQ XRX opened at $1.26 on Friday. The stock has a 50 day moving average of $1.78 and a 200-day moving average of $2.55. Xerox has a 12 month low of $1.22 and a 12 month high of $6.80. The company has a current ratio of 1.11, a quick ratio of 0.79 and a debt-to-equity ratio of 8.94. The company has a market capitalization of $162.06 million, a P/E ratio of -0.15 and a beta of 1.80.

Hedge Funds Weigh In On Xerox

A number of institutional investors have recently modified their holdings of the company. S Harris Financial Group LLC acquired a new stake in Xerox in the 4th quarter valued at $25,000. Captrust Financial Advisors acquired a new position in Xerox during the fourth quarter worth $26,000. Williams & Novak LLC bought a new position in shares of Xerox in the fourth quarter valued at $27,000. Arkadios Wealth Advisors acquired a new position in shares of Xerox during the fourth quarter valued at about $35,000. Finally, Levin Capital Strategies L.P. bought a new stake in shares of Xerox during the fourth quarter worth about $36,000. 85.36% of the stock is owned by institutional investors and hedge funds.

Xerox Announces Dividend

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

Xerox News Summary

Here are the key news stories impacting Xerox this week:

• Positive Sentiment: Zacks raised its Q1 2027 EPS estimate for Xerox to $0.15 from $0.09, a modest upside revision that could be seen as a short‑term positive for the company’s near‑term outlook.
• Negative Sentiment: Zacks cut multiple near‑term 2026 quarterly estimates — 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) — reducing expected earnings momentum in 2026.
• Negative Sentiment: Zacks lowered FY2027 EPS to $1.12 (from $1.17) and trimmed Q4 2027 and Q1 2028 estimates as well, reflecting a weaker multi‑quarter view that supports a more cautious stance on XRX.
• Negative Sentiment: Zacks maintains a “Strong Sell” rating on Xerox; the firm’s repeated downgrades and negative stance increase downside risk by influencing investor expectations and sell‑side pressure.
• Negative Sentiment: Unusually heavy put option activity — investors bought ~1,689 put contracts (a ~1,369% jump vs. typical volume) — signals speculative or hedged bearish positioning that can amplify downward moves. Stock Traders Buy Large Volume of Xerox Put Options (NASDAQ:XRX)

Xerox Company Profile

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.