Xerox Holdings XRX

NASDAQ XRX

$2.56 +0.07 (+2.61%)

As of: Oct 20, 2026 · 11:55 AM EDT

Xerox Holdings (XRX) stock price is $2.56, up 2.61% on the day, as of Oct 20, 2026. It has a market cap of $334.44Mn, and is classified in the Office Equipment industry (Industrials sector).

Key Stats

Market Cap334.44 Mn

P/E-0.36

P/S0.04

Div. Yield0.12

Total Debt (Qtr)82.00 Mn

Revenue Growth (1y) (Qtr)21.95

Add ratio to table…

About

Xerox Holdings Corporation is a workplace technology company that builds and integrates services led, software enabled solutions for enterprises of all sizes. The company focuses on helping customers manage information and document workflows across digital and physical platforms, delivering a seamless, secure and sustainable experience. Xerox Holdings Corporation leverages investments in IT infrastructure, artificial intelligence, Internet of Things, intelligent document…

Xerox Holdings Corporation generates revenue primarily from the sale of equipment, supplies, software, services and financing arrangements. Its revenue streams consist of Workplace Solutions, Production Solutions, Xerox Services, Xerox Financial Solutions and IT Solutions, encompassing hardware sales, post sale service contracts, supplies, software licensing and lease financing. The company serves a diverse customer base that includes small and mid sized businesses, printing production companies, governmental entities, educational institutions and Fortune 1000 corporations across North America, Europe, Latin America, Asia Pacific, the Middle East, Africa and India.

The company operates through the following segments: Print and Other and IT Solutions.

Print and Other: This segment includes the design, development and sale of document management systems, supplies and services, financing and technology related offerings, and digital and print related software products and services, covering Workplace Solutions, Production Solutions, Xerox Services and Xerox Financial Solutions.
IT Solutions: This segment provides integrated IT infrastructure solutions, delivering business outcomes through Device Lifecycle Solutions and Managed IT Services, while also offering Network and Security Solutions and Infrastructure and Cloud Solutions supported by professional services, engineering capabilities and an extensive partner ecosystem.

Xerox Holdings Corporation holds a leading or among the leading position in the entry, mid range and high end segments of the print market, competing on technology, performance, price, quality, reliability, brand reputation, distribution, service and support. Its principal competitors in the print business include Brother, Canon, FUJIFILM Business Innovations Corp., HP Inc., Konica Minolta, Kyocera and Ricoh. The company’s competitive advantages stem from its globally recognizable brand, deep expertise in document management, innovative technology portfolio and strong service delivery capabilities. In the IT Solutions arena, Xerox Holdings Corporation competes with other integrated IT solutions providers and value added resellers, differentiating itself through the breadth of its IT offerings, the skill and quality of its service and support technicians, relationships with OEM partners and the ability to leverage its existing client base to deliver combined print and IT solutions.

Xerox Holdings Corporation serves a broad range of customers including small and mid sized businesses, printing production companies, governmental entities, educational institutions and Fortune 1000 corporations. The company does not rely on any single customer or a small group of customers, with revenue diversified across industries and geographies. While the filing does not disclose specific customer names, the described customer types illustrate the wide applicability of its workplace technology and IT solutions.

Investment Thesis

▲ Bull case

Xerox is seeing stronger than expected demand in the entry level print segment driven by the legacy Lexmark business and the recently launched Proficio production devices developed with Fujifilm. The partnership announced by Toshiba Americas to carry Xerox PrimeLink color and monochrome light production printers validates the competitiveness of Xeroxs production portfolio and opens new routes to market. This endorsement from a respected OEM suggests that Xerox can gain share in the high growth production niche without relying solely on its own sales force. The combination of legacy Lexmarks strength in entry and Xeroxs own production innovations creates a barbell strategy that targets the two fastest growing pockets of the print market. As a result the company is positioned to capture incremental revenue that the market has not fully priced into the current share price.
The ongoing integration of Lexmark is giving Xerox greater control over product design development manufacturing and service delivery which is expected to improve gross margins later in the year. By owning the technology roadmap Xerox can manage design costs and speed to market more effectively than when relying on external suppliers. This vertical integration also reduces reliance on third party contract manufacturers and lowers the risk of supply chain disruptions. Early signs of cost savings are already appearing in the segment profit expansion where the Print segment margin rose 190 basis points year over year. As these benefits accumulate the company should see a sustained uplift in profitability that exceeds the market’s current expectations.
Management has guided to deliver $150,000,000 to $200,000,000 of in year integration synergies from the Lexmark acquisition in 2026 and emphasized that this is a multi year journey. These synergies are expected to come from reduced manufacturing costs streamlined go to market structures and lower marketing spend. Because the cost actions are being embedded into the operating model they will continue to generate savings well into 2027 and beyond. The multi year nature of the savings means that the earnings power of the business is likely to improve progressively each quarter as the integration matures. Investors who focus only on the current quarter may be underestimating the cumulative impact of these ongoing cost reductions.
The IT Solutions business reported robust growth in billings and bookings with gross billings up 21% year over year and total bookings up 32% year over year in the first quarter. This expansion of the pipeline indicates increasing wallet share among existing Xerox Print clients and the creation of more than $32,000,000 of new pipeline in the quarter. Although GAAP revenue in the segment declined due to accounting treatment of third party service contracts the underlying activity is strengthening. Investments in technical talent and broader service offerings are expected to convert this pipeline into larger more strategic deals over time. As the mix shift toward higher margin digital services progresses the IT Solutions segment should become a growing contributor to overall profitability.
The TPG Angelo Gordon joint venture raised more than $400,000,000 of liquidity net of fees and was used to repurchase $101,000,000 face value of the 2028 senior unsecured notes at a discount capturing $56,000,000 of value. This transaction has meaningfully derisked the near term maturity ladder leaving approximately $300,000,000 of scheduled debt maturities between now and December 2027. Management expects leverage to fall from the current pro forma gross leverage of 7x trailing 12 months EBITDA to about 5.6x gross and 4.5x net by the end of 2026 as EBITDA grows and debt paydown continues. The reduction in leverage will lower interest expense and improve free cash flow generation in the back half of the year. A stronger balance sheet should also increase financial flexibility to pursue opportunistic investments or return capital to shareholders.

Xerox is seeing stronger than expected demand in the entry level print segment driven by the legacy Lexmark business and the recently launched Proficio production devices developed with Fujifilm. The partnership announced by Toshiba Americas to carry Xerox PrimeLink color and monochrome light production printers validates the competitiveness of Xeroxs production portfolio and opens new routes to market. This endorsement from a respected OEM suggests that Xerox can gain share in the high growth production niche without relying solely on its own sales force. The combination of legacy Lexmarks strength in entry and Xeroxs own production innovations creates a barbell strategy that targets the two fastest growing pockets of the print market. As a result the company is positioned to capture incremental revenue that the market has not fully priced into the current share price.
The ongoing integration of Lexmark is giving Xerox greater control over product design development manufacturing and service delivery which is expected to improve gross margins later in the year. By owning the technology roadmap Xerox can manage design costs and speed to market more effectively than when relying on external suppliers. This vertical integration also reduces reliance on third party contract manufacturers and lowers the risk of supply chain disruptions. Early signs of cost savings are already appearing in the segment profit expansion where the Print segment margin rose 190 basis points year over year. As these benefits accumulate the company should see a sustained uplift in profitability that exceeds the market’s current expectations.
Management has guided to deliver $150,000,000 to $200,000,000 of in year integration synergies from the Lexmark acquisition in 2026 and emphasized that this is a multi year journey. These synergies are expected to come from reduced manufacturing costs streamlined go to market structures and lower marketing spend. Because the cost actions are being embedded into the operating model they will continue to generate savings well into 2027 and beyond. The multi year nature of the savings means that the earnings power of the business is likely to improve progressively each quarter as the integration matures. Investors who focus only on the current quarter may be underestimating the cumulative impact of these ongoing cost reductions.
The IT Solutions business reported robust growth in billings and bookings with gross billings up 21% year over year and total bookings up 32% year over year in the first quarter. This expansion of the pipeline indicates increasing wallet share among existing Xerox Print clients and the creation of more than $32,000,000 of new pipeline in the quarter. Although GAAP revenue in the segment declined due to accounting treatment of third party service contracts the underlying activity is strengthening. Investments in technical talent and broader service offerings are expected to convert this pipeline into larger more strategic deals over time. As the mix shift toward higher margin digital services progresses the IT Solutions segment should become a growing contributor to overall profitability.
The TPG Angelo Gordon joint venture raised more than $400,000,000 of liquidity net of fees and was used to repurchase $101,000,000 face value of the 2028 senior unsecured notes at a discount capturing $56,000,000 of value. This transaction has meaningfully derisked the near term maturity ladder leaving approximately $300,000,000 of scheduled debt maturities between now and December 2027. Management expects leverage to fall from the current pro forma gross leverage of 7x trailing 12 months EBITDA to about 5.6x gross and 4.5x net by the end of 2026 as EBITDA grows and debt paydown continues. The reduction in leverage will lower interest expense and improve free cash flow generation in the back half of the year. A stronger balance sheet should also increase financial flexibility to pursue opportunistic investments or return capital to shareholders.

▼ Bear case

Memory lead times have extended and higher memory prices are compressing margins in the IT Solutions business where the company is investing in technical talent to broaden its service offering. Although Xerox attempts to pass memory costs through to customers the ability to do so is limited by price elasticity and the company sometimes advises clients to extend hardware life to wait for lower prices. This dynamic creates near term pressure on IT Solutions profit expansion even as bookings and billings show growth. The margin upside from the segment may therefore be delayed until memory prices stabilize or the company successfully shifts to higher value services that are less memory intensive. Investors should watch for any further deterioration in memory related costs that could offset the benefits of rising pipeline.
The midrange print segment remains soft and continues to be a challenged part of the market despite Xeroxs historical leadership in that area. While the company is focusing its growth efforts on entry level and production devices the midrange still contributes to overall print revenue and profitability through managed print services offerings. A prolonged weakness in the midrange could offset gains made in the faster growing segments and limit the company s ability to stabilize total print revenue. The reliance on a barbell strategy means that any slowdown in either entry or production would have a disproportionate impact on the overall print mix. Market participants may be underestimating the drag that a persistently weak midrange places on the company s revenue outlook.
Q1 revenue benefited by approximately 1% from the pull forward of post sale revenue primarily in supplies driven by customer and channel concerns around potential supply disruptions related to the conflict in the Middle East. This temporary boost may not be repeated in subsequent quarters meaning that the underlying organic revenue trend remains weaker than the headline numbers suggest. Even after adjusting for this benefit the company noted that Q1 revenue would have exceeded consensus expectations by only about $80,000,000 indicating a modest upside. If the pull forward effect reverses the organic decline could reappear and put pressure on the revenue stabilization goal. Investors should therefore treat the Q1 beat as partially transitory and not a sustainable shift in demand momentum.
Total debt stood at $4,400,000,000 at the end of Q1 with approximately $1,400,000,000 supporting finance assets and $3,000,000,000 attributable to the nonfinancing business. Interest expense in the quarter rose to $84,000,000 up $51,000,000 year over year mainly due to higher net interest expense associated with the Lexmark acquisition financing. The increased interest cost consumes a portion of operating cash flow and limits the amount of free cash flow available for debt repayment or shareholder returns. Although management has outlined a plan to reduce leverage through EBITDA growth and debt paydown the high starting point means that any slowdown in earnings could delay the deleveraging timeline. The company s financial risk remains elevated until leverage ratios move significantly lower than current levels.
The non GAAP adjusted tax rate of negative 219% reflects a valuation allowance against certain deferred tax assets in the U.S. and U.K. which means that pretax losses in those jurisdictions do not generate a corresponding tax benefit while the company continues to record tax expense on profits elsewhere. This accounting quirk makes the reported adjusted EPS look worse than the underlying cash tax situation suggests. Until profitability improves enough to reduce the valuation allowance the tax rate will remain unusual and may mask the true earnings power of the business. Investors relying solely on non GAAP EPS could therefore be misled about the near term profitability trajectory. The company expects the tax rate to normalize as earnings rise but the timing of that normalization is uncertain.

Memory lead times have extended and higher memory prices are compressing margins in the IT Solutions business where the company is investing in technical talent to broaden its service offering. Although Xerox attempts to pass memory costs through to customers the ability to do so is limited by price elasticity and the company sometimes advises clients to extend hardware life to wait for lower prices. This dynamic creates near term pressure on IT Solutions profit expansion even as bookings and billings show growth. The margin upside from the segment may therefore be delayed until memory prices stabilize or the company successfully shifts to higher value services that are less memory intensive. Investors should watch for any further deterioration in memory related costs that could offset the benefits of rising pipeline.
The midrange print segment remains soft and continues to be a challenged part of the market despite Xeroxs historical leadership in that area. While the company is focusing its growth efforts on entry level and production devices the midrange still contributes to overall print revenue and profitability through managed print services offerings. A prolonged weakness in the midrange could offset gains made in the faster growing segments and limit the company s ability to stabilize total print revenue. The reliance on a barbell strategy means that any slowdown in either entry or production would have a disproportionate impact on the overall print mix. Market participants may be underestimating the drag that a persistently weak midrange places on the company s revenue outlook.
Q1 revenue benefited by approximately 1% from the pull forward of post sale revenue primarily in supplies driven by customer and channel concerns around potential supply disruptions related to the conflict in the Middle East. This temporary boost may not be repeated in subsequent quarters meaning that the underlying organic revenue trend remains weaker than the headline numbers suggest. Even after adjusting for this benefit the company noted that Q1 revenue would have exceeded consensus expectations by only about $80,000,000 indicating a modest upside. If the pull forward effect reverses the organic decline could reappear and put pressure on the revenue stabilization goal. Investors should therefore treat the Q1 beat as partially transitory and not a sustainable shift in demand momentum.
Total debt stood at $4,400,000,000 at the end of Q1 with approximately $1,400,000,000 supporting finance assets and $3,000,000,000 attributable to the nonfinancing business. Interest expense in the quarter rose to $84,000,000 up $51,000,000 year over year mainly due to higher net interest expense associated with the Lexmark acquisition financing. The increased interest cost consumes a portion of operating cash flow and limits the amount of free cash flow available for debt repayment or shareholder returns. Although management has outlined a plan to reduce leverage through EBITDA growth and debt paydown the high starting point means that any slowdown in earnings could delay the deleveraging timeline. The company s financial risk remains elevated until leverage ratios move significantly lower than current levels.
The non GAAP adjusted tax rate of negative 219% reflects a valuation allowance against certain deferred tax assets in the U.S. and U.K. which means that pretax losses in those jurisdictions do not generate a corresponding tax benefit while the company continues to record tax expense on profits elsewhere. This accounting quirk makes the reported adjusted EPS look worse than the underlying cash tax situation suggests. Until profitability improves enough to reduce the valuation allowance the tax rate will remain unusual and may mask the true earnings power of the business. Investors relying solely on non GAAP EPS could therefore be misled about the near term profitability trajectory. The company expects the tax rate to normalize as earnings rise but the timing of that normalization is uncertain.

Peer percentiles

How Xerox Holdings ranks

Ranked against the 130 companies in Business Services58 metrics · as of Oct 16, 2026

Valuation

12 metrics · Lower multiples rank higher; a negative multiple ranks last

P/ENegative earnings −0.38xMedian 19.9x 6^th
P/FCF 5.50xMedian 11.8x 91^st
P/Operating cash flow 1.62xMedian 10.2x 99^th
P/S 0.05xMedian 0.82x 94^th
P/B 1.07xMedian 2.17x 68^th
P/Tangible bookNegative tangible equity −0.67xMedian 2.90x Not meaningful —
EV/EBITDANet cash exceeds market value 0.01xMedian 11.7x Not meaningful —
EV/EBITNet cash exceeds market value 0.01xMedian 16.5x Not meaningful —
EV/RevenueNet cash exceeds market value −0.01xMedian 1.11x Not meaningful —
EV/FCFNet cash exceeds market value −0.96xMedian 16.8x Not meaningful —
EV/Operating cash flowNet cash exceeds market value −0.28xMedian 14.2x Not meaningful —
PEG (3Y EPS CAGR)Negative earnings 0.01Median 0.98 Not meaningful —

Growth

14 metrics · Year-on-year growth and three-year compound annual growth

Revenue growth (1Y) 18.9%Median 5.8% 88^th
Revenue CAGR (3Y) 1.5%Median 4.0% 40^th
Gross profit growth (1Y) 9.9%Median 3.9% 68^th
Gross profit CAGR (3Y) −5.3%Median 3.4% 21^st
Operating income growth (1Y) −4.8%Median 6.5% 35^th
Operating income CAGR (3Y) −5.6%Median 4.1% 39^th
Net income growth (1Y) 35.0%Median 5.0% 71^st
Net income CAGR (3Y) −54.5%Median 2.3% 9^th
EPS growth (1Y) 35.5%Median 13.8% 67^th
EPS CAGR (3Y) −65.6%Median 1.8% 9^th
Operating cash flow growth (1Y) −40.9%Median 10.0% 17^th
Operating cash flow CAGR (3Y) −14.8%Median 7.9% 22^nd
Free cash flow growth (1Y) −77.1%Median 13.2% 15^th
Free cash flow CAGR (3Y) −38.9%Median 7.8% 15^th

Profitability

14 metrics · Margins, returns on capital and the quality of earnings

Gross margin 28.9%Median 31.9% 42^nd
EBITDA margin −71.1%Median 9.7% 7^th
Operating margin −76.3%Median 4.1% 10^th
Pretax margin −5.2%Median 3.8% 24^th
Net margin −12.4%Median 2.7% 11^th
FCF margin 0.9%Median 4.8% 30^th
Operating cash flow margin 2.9%Median 8.1% 28^th
Return on equity −292%Median 10.6% 1^st
Return on assets −9.4%Median 2.8% 26^th
Return on invested capital −1,131%Median 6.8% 2^nd
Return on capital employed −85.4%Median 8.4% 5^th
Asset turnover 0.76xMedian 1.19x 26^th
Cash conversion (OCF / net income)Net income is not positive −0.23xMedian 1.65x Not meaningful —
Stock comp / revenue 0.5%Median 1.1% 80^th

Financial Health

11 metrics · Leverage, liquidity and solvency; less debt ranks higher

Debt / assets 0.8%Median 28.7% 97^th
Debt / equity 0.25xMedian 0.76x 74^th
Net debt / EBITDAEBITDA is not positive 0.08xMedian 2.04x Not meaningful —
Debt / FCF 1.28xMedian 3.79x 81^st
Liabilities / assets 96.6%Median 61.2% 20^th
Equity / assets 3.4%Median 38.8% 20^th
Interest coverage −19.0xMedian 2.27x 10^th
Current ratio 1.18xMedian 1.48x 33^rd
Quick ratio 0.59xMedian 1.25x 22^nd
Cash ratio 0.16xMedian 0.25x 33^rd
Altman Z-score −0.74Median 2.76 14^th

Peer group

Peer Comparison

Companies in the Office Equipment

View all peers

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	ACN	Accenture plc	147.25 Bn	18.90	2.01	5.14 Bn
2	CTAS	Cintas Corp	86.23 Bn	41.85	7.46	2.43 Bn
3	IRM	Iron Mountain Inc	34.00 Bn	81.21	4.50	17.35 Bn
4	APG	APi Group Corp	17.28 Bn	-69.66	2.05	3.52 Bn
5	ROL	Rollins Inc	15.93 Bn	29.96	4.06	0.70 Bn
6	ARMK	Aramark	14.79 Bn	38.62	0.75	6.13 Bn
7	ULS	UL Solutions Inc.	14.74 Bn	29.18	4.68	0.30 Bn
8	XRX	Xerox Holdings Corp	0.33 Bn	-0.36	0.04	0.08 Bn

Xerox Holdings XRX

About

Investment Thesis

How Xerox Holdings ranks

Valuation

Growth

Profitability

Financial Health

Shareholder Returns

Peer Comparison

Create an account

Sign In

Reset Password