Zacks Research Has Negative Forecast for Xerox Q1 Earnings

Xerox Holdings Co. (NASDAQ:XRX) – Equities researchers at Zacks Research reduced their Q1 2026 EPS estimates for Xerox in a research report issued on Thursday, February 19th. Zacks Research analyst Team now expects that the information technology services provider will post earnings of ($0.01) per share for the quarter, down from their prior forecast of $0.02. Zacks Research currently has a “Hold” 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 Q2 2026 earnings at $0.16 EPS, Q4 2026 earnings at $0.48 EPS, Q2 2027 earnings at $0.07 EPS, Q3 2027 earnings at $0.42 EPS, Q4 2027 earnings at $0.60 EPS, FY2027 earnings at $1.17 EPS and FY2028 earnings at $1.41 EPS.

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

XRX has been the subject of a number of other research reports. Weiss Ratings assumed coverage on Xerox in a report on Wednesday, January 28th. They issued a “sell (d-)” rating for the company. Citigroup restated a “neutral” rating and set a $2.50 target price (down from $3.50) on shares of Xerox in a research report on Friday, January 30th. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Reduce” and an average target price of $2.50.

Xerox Stock Performance

XRX stock opened at $1.86 on Friday. Xerox has a twelve month low of $1.81 and a twelve month high of $8.12. The company has a quick ratio of 0.80, a current ratio of 1.12 and a debt-to-equity ratio of 8.94. The company has a market cap of $238.15 million, a P/E ratio of -0.23 and a beta of 1.72. The business’s fifty day moving average is $2.36 and its 200-day moving average is $3.05.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of XRX. Goldman Sachs Group Inc. lifted its position in shares of 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 during the last quarter. Marshall Wace LLP lifted its holdings in Xerox by 71.0% during the 2nd quarter. Marshall Wace LLP now owns 3,928,444 shares of the information technology services provider’s stock valued at $20,703,000 after purchasing an additional 1,630,999 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its position in Xerox by 32.3% during 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 purchasing an additional 854,119 shares during the period. Geode Capital Management LLC increased its holdings in shares of Xerox by 24.4% in the fourth 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 during the last quarter. Finally, Two Sigma Investments LP raised its position in shares of Xerox by 43.2% in the third 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 during the period. Institutional investors own 85.36% of the company’s stock.

Xerox Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Stockholders of record on Tuesday, March 31st will be issued a $0.025 dividend. This represents a $0.10 annualized dividend and a dividend yield of 5.4%. The ex-dividend date of this dividend is Tuesday, March 31st. Xerox’s dividend payout ratio is presently -1.22%.

Key Headlines Impacting Xerox

Here are the key news stories impacting Xerox this week:

• Positive Sentiment: Board declared a quarterly common-stock dividend of $0.025 per share (payable Apr 30; record/ex-dividend Mar 31) and a $20.00 per-share dividend on Series A preferred — this yields about 5.4% annualized and can attract income-focused buyers. Xerox Holdings Corporation Declares Dividend on Common and Preferred Stock
• Negative Sentiment: Zacks Research lowered multiple quarterly and full-year EPS estimates (several Q1–Q4 2026/2027 cuts and FY2027 reduced from $1.37 to $1.17); Zacks maintains a “Hold.” The downward revisions signal weaker near-term profit outlook and can pressure the stock’s valuation and sentiment. Zacks Research: Xerox estimates cut (MarketBeat)
• Negative Sentiment: Unusually heavy options activity: traders bought 1,689 put contracts (a ~1,369% rise vs. normal daily put volume of ~115), indicating elevated bearish positioning or hedging demand that can amplify downside moves in the shares. Xerox Sees Unusually High Options Volume (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.