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1. Company Snapshot

1.a. Company Description

Xerox Holdings Corporation, a workplace technology company, designs, develops, and sells document management systems and solutions in the United States, Europe, Canada, and internationally.It offers workplace solutions, including desktop monochrome, and color and multifunction printers; digital printing presses and light production devices, and solutions; and digital services that leverage workflow automation, personalization and communication software, content management solutions, and digitization services.The company also provides graphic communications and production solutions; and IT services, end user computing devices, network infrastructure, communications technology, and a range of managed IT solutions, such as technology product support, professional engineering, and commercial robotic process automation.


In addition, it provides FreeFlow a portfolio of software solutions for the automation and integration to the processing of print job comprises file preparation, final production, and electronic publishing; XMPie, a personalization and communication software that support the needs of omni-channel communications customers; DocuShare, a content management platform to capture, store, and share paper and digital content; and CareAR, an enterprise augmented reality business.Further, the company sells paper products and wide-format systems.The company sells its products and services directly to its customers through its direct sales force, as well as through independent agents, dealers, value-added resellers, systems integrators, and e-commerce marketplaces.


Xerox Holdings Corporation was founded in 1906 and is headquartered in Norwalk, Connecticut.

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1.b. Last Insights on XRX

Xerox Holdings Corporation's recent performance was negatively impacted by a decline in earnings, with a quarterly loss of $0.06 per share versus the Zacks Consensus Estimate of a loss of $0.05. Revenues also missed estimates, decreasing year-over-year. The company's core print business continues to decline, with lower managed print services revenue and a shrinking legacy annuity base, indicating ongoing demand weakness. Additionally, Xerox announced a reduction in its dividend, the second cut in six months, which may have contributed to the decline in investor confidence.

1.c. Company Highlights

2. Xerox's Q4 2025 Earnings: A Mixed Bag

Xerox Holdings Corporation reported revenue of $2.03 billion for Q4 2025, a 26% increase in actual currency and 24% in constant currency. However, on a pro forma basis, revenue declined 9%, reflecting inorganic benefits from the Lexmark and IT Savvy acquisitions. The company's adjusted operating income margin was 5%, down 140 basis points year-over-year. The EPS came in at a loss of $0.1 per share, missing estimates of $0.15. For the full year, revenue was $7.02 billion, up 13% in actual currency and 12% in constant currency, but down approximately 8% excluding acquisition benefits.

Publication Date: Mar -09

📋 Highlights

Operational Highlights

Despite macroeconomic headwinds, Xerox is cautiously optimistic about business trends improving, citing a higher pipeline and improved cancellations and renewal rates. The company is addressing a recent spike in DRAM prices, which will impact costs, particularly in its IT solutions business. Xerox's CEO, Steven John Bandrowczak, expressed confidence in the company's long-term prospects, citing strengths in its Velocity channel and growing breadth of its business.

Cash Flow and Debt Reduction

Xerox generated $184 million in free cash flow in Q4, down $150 million year-over-year, with a full-year free cash flow of $133 million, above the $107 million guide. The company ended Q4 with $565 million in cash and equivalents and restricted cash, and total debt of $4.2 billion, down $160 million sequentially. Xerox's top capital priority remains debt reduction, and the company expects to repay the remaining $110 million of notes.

Valuation and Outlook

Xerox is trading at a price-to-sales ratio of 0.03, and its EV/EBITDA ratio is -25.22, indicating a potentially undervalued stock. For 2026, Xerox expects revenue of over $7.5 billion, representing approximately 7% growth versus 2025, with adjusted operating income of $450-500 million. Analysts estimate revenue growth at -1.2% for next year, indicating a potential slowdown. However, with a strong foundation in place, Xerox is poised to expand margins and return to profitable growth in 2026, driven by easing headwinds, new product launches, and disciplined execution of its reinvention program.

Synergy Pipeline and Deleveraging Plan

The company has a robust synergy pipeline and a clear plan to reduce debt, with a focus on cash flow generation. With a deleveraging plan in place and a commitment to creating value for shareholders, Xerox is well-positioned to navigate the challenges posed by rising memory costs and capitalize on opportunities in the market.

3. NewsRoom

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Xerox Holdings Corporation (XRX) Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript

Mar -02

Source: seekingalpha.com

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Stock Traders Purchase Large Volume of Xerox Put Options (NASDAQ:XRX)

Feb -19

Source: defenseworld.net

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Xerox Raises $450 Million for New Joint Venture to Strengthen Balance Sheet and Support Long-Term Strategy

Feb -17

Source: businesswire.com

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Xerox Distributes Pro Rata Warrants to Enhance Shareholder Value and Accelerate Deleveraging

Feb -12

Source: businesswire.com

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Federated Hermes Inc. Trims Position in Xerox Holdings Co. $XRX

Feb -09

Source: defenseworld.net

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Traders Purchase Large Volume of Xerox Put Options (NASDAQ:XRX)

Feb -05

Source: defenseworld.net

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Traders Purchase High Volume of Put Options on Xerox (NASDAQ:XRX)

Feb -05

Source: defenseworld.net

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Xerox Q4 Earnings Call Highlights

Feb -03

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.83%)

6. Segments

Print and Other

Expected Growth: 4.6%

The 4.6% growth in Print and Other from Xerox Holdings Corporation is driven by increasing demand for digital printing, expansion in emerging markets, and strategic partnerships. Additionally, the company's focus on innovation, cost savings initiatives, and growing adoption of its software and services offerings also contribute to this growth.

FITTLE

Expected Growth: 8.5%

FITTLE from Xerox Holdings Corporation's 8.5% growth is driven by increasing demand for digital transformation, IT services, and cloud-based solutions. Strong partnerships, strategic acquisitions, and investments in innovation also contribute to growth. Additionally, the company's focus on operational efficiency, cost savings, and restructuring efforts have improved profitability.

7. Detailed Products

WorkCentre Multifunction Devices

A range of multifunction devices that combine printing, copying, scanning, and faxing capabilities

Xerox AltaLink Multifunction Devices

High-performance multifunction devices with advanced security features and mobile printing capabilities

Xerox VersaLink Multifunction Devices

Compact and affordable multifunction devices with wireless connectivity and mobile printing capabilities

Xerox Phaser Printers

High-quality printers designed for high-volume printing with advanced security features

Xerox Digital Presses

High-end digital printing presses for commercial printing applications

Xerox IT Services

Managed IT services for document management, cybersecurity, and infrastructure support

Xerox Document Management Software

Software solutions for document management, workflow automation, and content management

Xerox Business Process Outsourcing

Outsourcing services for document management, customer communication, and back-office operations

8. Xerox Holdings Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Xerox Holdings Corporation is medium due to the presence of alternative document management solutions and digitalization of documents.

Bargaining Power Of Customers

The bargaining power of customers is high due to the presence of large enterprise customers who can negotiate prices and terms.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the document management industry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of established competitors in the document management industry, leading to a competitive pricing environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 54.66%
Debt Cost 3.95%
Equity Weight 45.34%
Equity Cost 12.04%
WACC 7.61%
Leverage 120.57%

11. Quality Control: Xerox Holdings Corporation passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
ISG

A-Score: 5.5/10

Value: 4.5

Growth: 2.6

Quality: 5.6

Yield: 6.0

Momentum: 9.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
TaskUs

A-Score: 4.7/10

Value: 5.8

Growth: 8.2

Quality: 6.7

Yield: 0.0

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Hackett

A-Score: 4.5/10

Value: 2.8

Growth: 5.0

Quality: 5.7

Yield: 5.0

Momentum: 1.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Xerox

A-Score: 4.2/10

Value: 8.0

Growth: 2.3

Quality: 1.8

Yield: 10.0

Momentum: 0.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Unisys

A-Score: 3.2/10

Value: 10.0

Growth: 2.2

Quality: 3.5

Yield: 0.0

Momentum: 0.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
CSP

A-Score: 3.0/10

Value: 5.7

Growth: 3.9

Quality: 3.5

Yield: 1.0

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.72$

Current Price

1.72$

Potential

-0.00%

Expected Cash-Flows