Xerox Holdings Stock Rises 7.4% Since Q4 Earnings Release

Xerox Holdings XRX reported unimpressive fourth-quarter 2025 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.

Despite the narrower-than-expected results, the company’s shares have gained 7.4% since the earnings release on Jan. 29.

Quarterly adjusted loss came in at 10 cents per share compared to the Zacks Consensus Estimate earnings of 15 cents and decreasing more than 100% from the year-ago quarter. Revenues of $2.03 billion lagged the consensus estimate by 2.6% but increased 25.7% on a year-over-year basis.

The company’s shares have depreciated 73.6% over the past year compared with the Office Supplies industry’s 51.5 decline and the 18% rise of the S&P 500.

Xerox Holdings Corporation Price, Consensus and EPS Surprise

Xerox Holdings Corporation price-consensus-eps-surprise-chart | Xerox Holdings Corporation Quote

Q4 Revenue Details of XRX

Post-sale revenues came in at $1.54 billion, up 26.5% year over year on a reported basis and 24.3% at cc, lagging our estimate of $1.71 billion. Equipment sales rose 23.4% year over year on a reported basis and 21.1% at cc to $485 million, beating our estimate of $395.7 million.

The Print and Other segment’s revenues totaled $1.87 billion, up 24.9% year over year on a reported basis and down 9% at cc, beating our estimate of $1.62 billion.

Sales revenues amounted to $1.07 million, up 62.8% year over year on a reported basis and 60.4% at cc. Services, maintenance, rentals and other revenues included financing revenues generated from direct and indirectly financed Xerox equipment sale transactions of $55 million and $39 million for the fourth quarter of 2025 and 2024, respectively.

XRX’s Operating Performance

Adjusted operating income came in at $102 million, down 2% on a year-over-year basis. The adjusted operating margin was 5%, down 140 basis points year over year.

XRX’s Key Balance Sheet and Cash Flow Figures

Xerox exited the quarter with a cash and cash equivalent balance of $512 million compared with $576 million in the December-end quarter of 2024. The company’s net cash provided by operating activities and free cash flow for the quarter were $208 million and $184 million, respectively.

XRX’s 2026 Guidance

For 2026, the adjusted operating income is projected to be in the band of $400-$500 million. The company anticipates free cash flow to be approximately $250 million.

The operating cash flow for 2026 is expected to be approximately $360 million.

Xerox expects the 2026 revenues to be above $7.5 billion, and capital expenditures are anticipated to be $110 million.

Xerox’s Zacks Rank

XRX currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Accenture plc (ACN) reported impressive first-quarter fiscal 2026 results.

ACN’s earnings were $3.94 per share, beating the Zacks Consensus Estimate by 5.6%. The metric increased 9.8% from the year-ago quarter. Total revenues of $18.7 billion beat the consensus estimate by 1% and rose 6% on a year-over-year basis.

Automatic Data Processing, Inc. (ADP) reported impressive second-quarter fiscal 2026 results, wherein earnings and revenues outpaced the Zacks Consensus Estimate.

ADP’s earnings per share of $2.62 beat the consensus estimate by 1.6% and increased 11.5% from the year-ago quarter. Total revenues of $5.4 billion missed the consensus estimate by a slight margin but grew 6.2% on a year-over-year basis.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research