Xerox (NASDAQ:XRX) Posts Earnings Results, Misses Estimates By $0.25 EPS

Xerox (NASDAQ:XRX) announced its quarterly earnings results on Thursday. The information technology services provider reported ($0.10) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.15 by ($0.25), Zacks reports. Xerox had a negative net margin of 21.24% and a positive return on equity of 7.57%.

Xerox Price Performance

XRX stock traded down $0.15 during midday trading on Thursday, reaching $2.19. The company had a trading volume of 4,834,413 shares, compared to its average volume of 3,318,184. The company has a market capitalization of $279.77 million, a price-to-earnings ratio of -0.20 and a beta of 1.72. The company has a debt-to-equity ratio of 2.61, a current ratio of 1.11 and a quick ratio of 0.84. Xerox has a 1-year low of $2.07 and a 1-year high of $8.91. The stock has a 50 day moving average price of $2.55 and a 200-day moving average price of $3.41.

Xerox’s stock is set to split before the market opens on Monday, February 9th. The 3-2 split was recently announced. The newly issued shares will be issued to shareholders after the market closes on Sunday, February 8th.

Xerox Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, January 30th. Investors of record on Wednesday, December 31st will be given a $0.025 dividend. The ex-dividend date is Wednesday, December 31st. This represents a $0.10 dividend on an annualized basis and a dividend yield of 4.6%. Xerox’s dividend payout ratio (DPR) is presently -1.28%.

Hedge Funds Weigh In On Xerox

Institutional investors have recently modified their holdings of the business. Gabelli Funds LLC raised its stake in Xerox by 4.5% during the second quarter. Gabelli Funds LLC now owns 58,000 shares of the information technology services provider’s stock worth $306,000 after acquiring an additional 2,500 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Xerox by 4.3% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 69,047 shares of the information technology services provider’s stock valued at $333,000 after buying an additional 2,838 shares in the last quarter. CANADA LIFE ASSURANCE Co grew its stake in shares of Xerox by 1.9% during the second quarter. CANADA LIFE ASSURANCE Co now owns 164,566 shares of the information technology services provider’s stock worth $868,000 after buying an additional 3,138 shares during the last quarter. Cetera Investment Advisers lifted its stake in shares of Xerox by 33.2% in the 2nd quarter. Cetera Investment Advisers now owns 17,320 shares of the information technology services provider’s stock valued at $91,000 after acquiring an additional 4,319 shares during the last quarter. Finally, Private Management Group Inc. grew its position in Xerox by 0.5% during the 3rd quarter. Private Management Group Inc. now owns 1,051,054 shares of the information technology services provider’s stock worth $3,952,000 after acquiring an additional 4,986 shares during the last quarter. Institutional investors and hedge funds own 85.36% of the company’s stock.

Key Stories Impacting Xerox

Here are the key news stories impacting Xerox this week:

• Positive Sentiment: Board-approved pro?rata warrant distribution intended to enhance shareholder value and accelerate deleveraging (could be constructive for equity holders and reduce net leverage over time). Xerox Announces Pro-Rata Warrant Distribution
• Positive Sentiment: Management says the Lexmark integration is “advancing ahead of plan” and delivering tangible synergies — a potential medium?term earnings and cash?flow tailwind. Xerox Releases Fourth-Quarter and Full-Year Results
• Neutral Sentiment: Earlier intraday bounce tied to positive headlines (warrant plan / integration) drove a sharp move the prior day, but that gain is being trimmed after the earnings release. Why Xerox Stock Is Up 10.82%
• Neutral Sentiment: Q4 earnings call transcript and company commentary are available for detail on guidance, non?GAAP adjustments and cost drivers; investors should read management’s commentary for color on the outlook. Q4 2025 Earnings Call Transcript
• Negative Sentiment: Q4 EPS missed consensus — reported a ($0.10) loss vs. analyst estimate of $0.15; revenue growth still missed some estimates, signaling near?term operational strain. Xerox Reports Q4 Loss, Lags Revenue Estimates
• Negative Sentiment: Management warned of rising memory costs that pressured gross margins and profitability — a cost headwind that could persist near term and hurt operating margins. Xerox Warns Of Rising Memory Costs
• Negative Sentiment: Profitability and balance?sheet metrics remain strained (negative net margin, elevated leverage), which increases sensitivity to cost shocks and weakens near?term equity upside. MarketBeat XRX Profile

Analyst Ratings Changes

A number of equities analysts recently weighed in on the stock. Zacks Research lowered shares of Xerox from a “hold” rating to a “strong sell” rating in a research note on Thursday, January 1st. Citigroup decreased their price objective on shares of Xerox from $4.50 to $3.50 and set a “neutral” rating on the stock in a report on Monday, November 10th. One research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Xerox currently has an average rating of “Reduce” and an average target price of $3.50.

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.