XRX

Xerox Holdings Corporation XRX reported impressive second-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate. XRX’s earnings of 36 cents per share topped the Zacks Consensus Estimate by more than 100%. In the year-ago quarter, the company had incurred an adjusted loss of 64 cents per share. Xerox Holdings Corporation price-consensus-eps-surprise-chart | Xerox Holdings Corporation Quote Revenues of $1.92 billion surpassed the consensus mark by 1% and rose 22% year over year. The Lexmark acquisition lifted reported growth, while pro forma revenues declined 6.5%. A $105 million pre-tax benefit from IEEPA tariff receivables materially supported profitability. However, the better-than-expected results and a raised 2026 revenue guidance failed to impress investors, as the stock has declined 15.5% since the earnings release on July 30. For 2026, Xerox expects revenues of approximately $7.6 billion, up from its previous outlook of more than $7.5 billion. The revision reflects higher expectations for the Print and Other segment. The Zacks Consensus Estimate for the same is pegged at $7.59 billion. Xerox shares have depreciated 28.6% over the past year compared with the Office Supplies industry’s 7.2% decline. The Zacks S&P 500 composite has risen 21.1% over the same time frame. Equipment sales revenues increased 15.2% year over year on a reported basis and 15% at constant currency to $387 million. However, pro forma equipment revenues declined 13%, reflecting lower installations and a shift toward entry-level products. Post-sale revenues climbed 30.7% on a reported basis and 29.7% at constant currency to $1.35 billion. On a pro forma basis, the metric fell 3.9%, hurt by lower equipment service, managed print services and financing revenues. Print and Other revenues totaled $1.73 billion, up 26.9% year over year but down 6.1% on a pro forma basis. Segment profit surged to $220 million from $65 million, while the segment margin expanded to 12.7% from 4.8%. Total installations declined 6% on a pro forma basis. Entry color installations rose 6%, but mid-range and high-end installations fell 13% and 19%, respectively. Management expects the entry-product backlog to support installations and revenues during the second half of 2026. IT Solutions revenues declined 8.9% year over year to $194 million. Product revenues fell 8.5% to $140 million, while services revenues decreased 14% to $49 million. Segment profit dropped 30% to $7 million and margin contracted to 3.7% from 4.8%. Underlying activity was firmer than reported revenues. Pro forma non-GAAP gross billings rose 4% to $228 million, with year-to-date gross billings and gross bookings increasing 11% and 6%, respectively. Xerox cited double-digit growth in infrastructure and networking offerings and endpoints. Adjusted operating income increased to $203 million from $59 million. The adjusted operating margin expanded 690 basis points to 10.6%. Excluding the tariff receivables benefit, the margin was 5.1%, up 140 basis points year over year. Adjusted gross margin improved to 36.4% from 29.3%, aided by Lexmark, integration synergies and transformation savings. These benefits were partly offset by higher incentive compensation, product costs and lower finance-related fees. Non-financing interest expense increased 82% to $100 million. Operating cash flow was $37 million compared with an outflow of $11 million a year earlier. Free cash flow improved to $11 million from an outflow of $30 million. Cash and cash equivalents were $495 million at June 30, 2026, compared with $512 million at year-end 2025. The company reduced total debt by $223 million during the quarter. Total debt was $4.22 billion, while gross and net leverage improved to 5.9 times and 5.1 times, respectively, from 7 times and 6 times at the end of the first quarter. Adjusted operating income is now projected between $555 million and $605 million, up from $450 million to $500 million. Free cash flow guidance remains approximately $250 million. Xerox also raised its Lexmark gross cost synergy target by $50 million to at least $350 million, with half expected to be realized in 2026. Currently, Xerox carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Trane Technologies plc TT reported impressive second-quarter 2026 results. TT’s adjusted earnings of $4.31 per share outpaced the consensus mark by 0.9% and rose 11.1% from the year-ago quarter’s actual. TT’s total revenues of $6.35 billion surpassed the consensus mark by 2.9% and increased 6.4% year over year. Rollins, Inc. ROL posted unimpressive second-quarter 2026 results. ROL’s adjusted earnings of 32 cents per share missed the Zacks Consensus Estimate by 5.9% but rose 6.7% year over year. Total revenues of $1.08 billion fell short of the consensus estimate by 1.7% but increased 7.9% from the year-ago quarter. 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 Xerox Holdings Corporation (XRX) : Free Stock Analysis Report Rollins, Inc. (ROL) : Free Stock Analysis Report Trane Technologies plc (TT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Xerox Holdings (XRX) is back in focus after reporting second quarter 2026 results that showed a quarterly profit, higher year over year revenue, and a raised full year revenue and adjusted operating income outlook. See our latest analysis for Xerox Holdings. The Xerox Holdings share price has been volatile, with a 1 day share price return that declined 15.47% following the earnings release, even as the year to date share price return is up 19.92%. That sits against a 1 year total shareholder return that declined 21.62% and a 5 year total shareholder return that declined 83.20%. This points to some recent momentum but a much weaker longer term outcome for shareholders. If Xerox Holdings' latest results have you rethinking opportunities in workplace and IT technology, it could be worth scanning other businesses through the 18 top founder-led companies Bulls point to Xerox Holdings returning to a quarterly profit and lifting guidance. Bears point to years of weak shareholder returns and an annual loss. Which side do the current valuation markers support next? Based on current metrics, Xerox Holdings looks cheap on a revenue basis, with the company flagged as trading at good value compared to both peers and the wider US Tech sector. The preferred metric here is the P/S ratio. It compares the value the market places on the company to the revenue it generates. For Xerox Holdings, the current P/S ratio is assessed at 0x, which signals that investors are paying very little in market value relative to the company’s reported revenue of $7,757m and market cap of about $387m. According to the checks provided, Xerox Holdings is viewed as good value on this P/S measure versus peers and industry. It is described as good value against the US Tech industry average P/S of 2.9x and also against a peer average of 1.1x. It is additionally assessed as good value against an estimated fair P/S ratio of 0.6x, which is a level the market could potentially move toward if sentiment or expectations change. Explore the SWS fair ratio for Xerox Holdings Separately, the SWS DCF model points to a very large gap between the share price and an estimate of future cash flow value. Xerox Holdings last closed at $2.95 while the model’s fair value estimate stands at $41.93. The model projects future cash flows for the business and then discounts them back to today using a required rate of return. This gives a present value for those expected cash streams in dollar terms rather than a simple multiple. For a company like Xerox Holdings that is currently loss making, with earnings reported at a loss of $939m and earnings having declined by 34.6% per year over the past 5 years, a cash flow based view can give a different angle compared to profit based metrics. The DCF approach focuses on what the business could generate in cash over time rather than what current earnings show in a single year. Look into how the SWS DCF model arrives at its fair value. Result: Price-to-Sales of 0x (UNDERVALUED) However, Xerox Holdings still faces risks from its ongoing annual revenue decline of 1.95%, as well as a recent annual net income loss of $939m, which could pressure sentiment. Find out about the key risks to this Xerox Holdings narrative. While the P/S ratio presents Xerox Holdings as very cheap on current revenue, the SWS DCF model goes much further. It suggests a fair value of $41.93 per share versus the recent $2.95 price. That implies a very large gap. Could the DCF assumptions prove too optimistic, or is the market being overly cautious? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Xerox Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 55 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. If the mixed signals around Xerox Holdings leave you unsure, it helps to look at the underlying data yourself and act before sentiment shifts again. You can weigh both sides of the story by reviewing the 2 key rewards and 3 important warning signs If Xerox Holdings has sharpened your focus on value, do not stop here. Broaden your watchlist with other stocks that line up with your investment approach. Target potential mispricings by checking companies flagged as attractively valued in the 55 high quality undervalued stocks Strengthen your income focus by reviewing companies offering robust yields in the 9 dividend fortresses Prioritise resilience by assessing companies with lower risk profiles in the 81 resilient stocks with low risk scores This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include XRX. 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Interested in Xerox Holdings Co.? Here are five stocks we like better. Revenue rose 22% year over year to $1.92 billion in Q2 2026, driven by the Lexmark acquisition, although pro forma revenue declined nearly 7%. Adjusted operating margin improved to 10.6%, helped by $105 million in tariff receivables and Lexmark integration synergies. Xerox reduced total debt by $223 million sequentially, lowering gross leverage to 5.9 times, while repaying bridge notes and repurchasing discounted debt. The company also reduced its 2028 maturity wall by nearly $200 million during the first half of the year. Management raised its 2026 revenue outlook to approximately $7.6 billion and adjusted operating-income guidance to $555 million-$605 million, while increasing its Lexmark synergy target to at least $350 million. Equipment supply constraints and IT Solutions sales-force investments remain near-term challenges. 2 former tech trailblazers rising like a phoenix Xerox (NASDAQ:XRX) reported second-quarter 2026 revenue growth driven by its Lexmark acquisition, raised its full-year revenue and adjusted operating-income outlooks, and continued to reduce debt as management focused on stabilizing revenue, improving profitability and lowering leverage. Chief Executive Officer Louie Pastor said the company views its 2028, 2029 and 2030 debt maturities as “three hurdles” that shape its priorities. “If an initiative doesn't advance one of these three priorities, then we don't pursue it,” Pastor said. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now MarketBeat: Week in Review 4/25 – 4/29 Second-quarter revenue totaled $1.92 billion, up 22% year over year, or 21% in constant currency, reflecting Lexmark’s contribution. On a pro forma basis, however, revenue declined nearly 7% from the prior year. Management said the comparison reflected a currency benefit and supplies pull-forward that aided the first quarter, while the underlying year-over-year revenue trajectory modestly improved in the second quarter after accounting for those factors. Adjusted operating margin rose to 10.6%, an increase of 690 basis points from a year earlier. The result included $105 million of tariff receivables recognized in gross profit following a Supreme Court ruling on IEEPA tariffs. Excluding that benefit, adjusted operating margin would have been 5.1%, still 140 basis points above the prior-year level. → 3 Value ETFs to Consider as Growth Stocks Lag Behind Xerox Holdings Stock is a Value Play Chief Financial Officer Chuck Butler said the tariff receivables represented recovery of costs Xerox had already paid and absorbed over the prior 12 months, rather than a new windfall. Xerox sold the receivable to a third party for $80 million in cash, with the $25 million difference recorded as original issue discount. Because the claims had not been processed at quarter-end, the $80 million was classified as financing cash flow rather than operating cash flow. Butler said the classification could change after claims processing, but the economics of the cash receipt would not. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Adjusted gross margin was 36.4%, up 710 basis points year over year, while adjusted operating income benefited from Lexmark integration synergies, transformation initiatives and the tariff receivables. Higher incentive compensation, product costs, revenue mix and lower finance-related fees partly offset those gains. GAAP earnings per share were $0.07, compared with a loss in the year-earlier period, while adjusted EPS was $0.38. Non-financing interest expense increased $45 million year over year to $100 million, primarily due to financing associated with the Lexmark acquisition and the TPG joint venture. Within the Print & Other segment, equipment revenue was $387 million, up 15% as reported but down 13% on a pro forma basis. Butler attributed the pro forma decline to softer mid-range performance, lower OEM sales and a larger backlog caused by stronger-than-expected demand for entry-level products. Pastor said entry-level demand exceeded Xerox’s ability to supply products during the quarter, pushing some installations and revenue into later periods. The company expects to work through that backlog during the second half. In June, Xerox introduced its first hardware under a unified Xerox brand: a new entry-color printer and managed service provider lineup aimed at small workgroups. Pastor said entry-color installs increased during the quarter despite the products having been available for only several weeks. The company is also emphasizing its internally developed 9-Series mid-range platform. Pastor said Xerox historically sourced all mid-range equipment from third parties, limiting its control over costs, working capital and product competitiveness. The new platform is intended to improve economics for Xerox and offer customers a more favorable total cost of ownership, particularly at higher print speeds. Print & Other post-sale revenue rose 31% as reported to $1.35 billion, but declined 4% on a pro forma basis, primarily due to lower service, rental and other revenue, lower outsourcing revenue, and lower financing income. Segment margin was 12.7%; excluding tariff receivable benefits, Print segment margin increased 180 basis points year over year. IT Solutions gross billings increased 4% year over year in the second quarter and 11% for the first half, while GAAP revenue declined 9%. The company said a growing share of third-party services contracts, SaaS offerings and certain fulfillment contracts are reported on a net basis because Xerox acts as an agent rather than a principal. IT Solutions gross profit margin increased 160 basis points to 18%, though segment profit margin fell 110 basis points to 3.7% as the company invested in its sales organization. Pastor said Xerox is rebuilding the segment’s sales force, adding technical sales support and strengthening cross-selling efforts, which have pressured near-term signings and profitability. Management expects IT Solutions billings in the fourth quarter to exceed third-quarter levels on a year-over-year basis, with newer sellers becoming more productive and deal conversion improving. Revenue is expected to align more closely with billings over the next several quarters. Pastor said customers are investing in endpoint refreshes, infrastructure modernization, data-center capacity and security related to AI workloads. He noted, however, that large data-center buildouts are not Xerox’s primary customer set and can also absorb portions of client technology budgets. Xerox generated $37 million in operating cash flow and $11 million in free cash flow during the quarter. It ended the period with $552 million in cash equivalents and restricted cash, and total debt of $4.2 billion, down $223 million sequentially. During the quarter, Xerox repaid $125 million of 13% senior bridge notes at maturity and repurchased $99 million of debt face value, including $93 million of 2028 senior unsecured notes. The company spent $57 million on those open-market repurchases, capturing $42 million of discount. Gross leverage fell to 5.9 times trailing-12-month EBITDA from 7 times at the end of the first quarter. Net leverage declined to 5.1 times from 6 times. Xerox reduced its 2028 maturity wall by nearly $200 million during the first half of 2026. The company now expects 2026 revenue of approximately $7.6 billion, compared with prior guidance of more than $7.5 billion. It forecast adjusted operating income of $555 million to $605 million, an increase of $105 million from its prior outlook, primarily reflecting the tariff receivables recognized in the second quarter. Xerox maintained its free-cash-flow forecast of approximately $250 million. Butler said proceeds from the tariff receivable sale were offset by higher restructuring costs, working-capital pressure and additional interest expense related to the TPG joint venture. The company raised its Lexmark synergy target to at least $350 million from at least $300 million. About half of the anticipated savings are expected in 2026, with the remainder expected in 2027 and 2028. Management also said higher memory prices and elevated oil prices could present modest risk to its updated profit and cash outlook if those conditions persist. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Xerox Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Revenue: $1.92 billion, up 22% year-over-year on a reported basis, reflecting the Lexmark acquisition. On a pro forma basis, revenue declined nearly 7%. Adjusted Operating Margin: 10.6%, up 690 basis points year-over-year. Excluding the benefit of tariff receivables, it was 5.1%, up 140 basis points. Adjusted Gross Margin: 36.4%, up 710 basis points year-over-year. GAAP EPS: $0.07, up $0.94 year-over-year. Adjusted EPS: $0.38, up year-over-year. Print & Other Equipment Revenue: $387 million, up 15% year-over-year. On a pro forma basis, declined 13%. Print & Other Post-Sale Revenue: $1.35 billion, up 31% as reported. On a pro forma basis, declined 4%. Print & Other Adjusted Gross Margin: 38.4%, up 720 basis points. IT Solutions Gross Billings: Grew 4% year-over-year. IT Solutions GAAP Revenue: Fell 9% year-over-year. IT Solutions Gross Profit: $35 million, with a margin of 18%, up 160 basis points. IT Solutions Segment Profit: $7 million, with a profit margin of 3.7%, down 110 basis points. Operating Cash Flow: $37 million, compared to a use of $11 million in the prior year. Free Cash Flow: $11 million, up $41 million year-over-year. Total Debt: $4.2 billion, down $223 million sequentially. Gross Leverage: 5.9 times trailing 12 months EBITDA, down from 7 times last quarter. Net Leverage: 5.1 times trailing 12 months EBITDA, down from 6 times last quarter. 2026 Revenue Guidance: Approximately $7.6 billion, raised from greater than $7.5 billion. 2026 Adjusted Operating Income Guidance: $555 million to $605 million, up $105 million from prior outlook. 2026 Free Cash Flow Guidance: Approximately $250 million. Lexmark Synergy Target: Raised to at least $350 million, up from at least $300 million. Warning! GuruFocus has detected 6 Warning Signs with XRX. Is XRX fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue increased 22% year-over-year to $1.92 billion, driven by the Lexmark acquisition. Adjusted operating margin improved to 10.6%, up 690 basis points year-over-year, with pro forma gross margins also expanding. Total debt was reduced by $223 million in Q2, and gross leverage improved from 7x to 5.9x, with net leverage falling from 6x to 5.1x. Full-year 2026 revenue guidance was raised by approximately $100 million, and adjusted operating income guidance was increased by $105 million. Lexmark integration synergy target was raised to at least $350 million, up from $300 million, with half expected to be realized in 2026. Pro forma revenue declined nearly 7% year-over-year, with equipment sales down 13% on a pro forma basis due to softer mid-range and OEM sales. IT Solutions revenue fell 9% year-over-year, with near-term pressure from a rebuilding sales force and credit profile friction. Free cash flow guidance remained at $250 million despite a $80 million tariff receivable, offset by higher restructuring costs and working capital drags. Higher memory and oil prices pose a modest risk to profit and cash outlook, with oil prices not normalizing as expected. GAAP tax rate remains volatile due to a valuation allowance, with pre-tax losses in the US and UK not generating tax benefits. Here are the key highlights from the Xerox Holdings Corp (NASDAQ:XRX) Q2 2026 earnings call, presented as summarized Q&A pairs. Q: Can you walk us through the offsets that kept your free cash flow guidance at $250 million despite receiving $80 million from the tariff receivable?A: (Charles Butler, CFO) The $80 million from the tariff receivable was roughly offset by three items: higher restructuring costs, some working capital drags, and additional interest related to the TPG JV. These factors kept the free cash flow guidance in the same $250 million range. Q: What are the drivers behind your confidence in a second-half equipment recovery, and where are you seeing the most demand?A: (Louie Pastor, CEO) Demand for print is fairly stable, and our overall pipeline is running ahead of last year. We see real strength in the entry-level segment, where demand actually outran supply in Q2, creating a backlog we expect to work down. The soft spot is the mid-range (A3), but we are not counting on that segment to bounce back; instead, we are building products with a cost structure that wins in the current environment. Q: What are the risks to your second-half revenue and margin outlook for the IT Solutions segment?A: (Louie Pastor, CEO) We don't see a risk of pull-forward; in fact, we saw more deals slip from Q2 into Q3. Client demand drivers like endpoint refreshes and infrastructure modernization remain intact. We are confident in the second half due to new products, backlog conversion, and our rebuilt sales force hitting its stride, though the step-up will be more heavily weighted toward Q4 than Q3. Q: Can you disaggregate the drivers of the sequential gross margin improvement, even when normalizing for the IEEPA tariff refund?A: (Charles Butler, CFO) The improvement is driven by several factors: continued transformation benefits from acquisition synergies, the positive mix impact from Lexmark, and benefits from product pricing. These are partially offset by headwinds from revenue mix shifting toward post-sale revenue and higher UMC costs on externally sourced A3 products as we transition to internal manufacturing. Q: What are the guideposts for thinking about free cash flow in 2027, given that the sale of forward flow receivables is likely to decline?A: (Charles Butler, CFO) While we are not providing 2027 guidance, the decline in forward flow receivables will be a headwind. This will be offset by tailwinds from additional synergy savings driving higher profitability, lower interest expense as we continue to retire debt, and lower restructuring costs. Q: Are you seeing any AI-related infrastructure demand within your IT Solutions customer base?A: (Louie Pastor, CEO) Yes, we see clients refreshing endpoints for AI PCs and modernizing infrastructure for AI workloads, which is a tailwind. However, a lot of IT spend is being absorbed by large data center buildouts, which is not our primary client set. So, AI cuts both ways for us. Q: What is the outlook for the IT Solutions segment in terms of billings and revenue alignment?A: (Louie Pastor, CEO) Gross billings grew 4% in Q2 and 11% year-to-date. We expect Q4 billings to be ahead of Q3 year-over-year. Revenue should begin tracking more closely with billings as we move into next year, as a growing share of what we sell is reported on a net basis. Q: What is the updated synergy target from the Lexmark integration, and what is the expected timeline for realization?A: (Louie Pastor, CEO) We have raised the Lexmark integration synergy target to at least $350 million, up from the prior target of $300 million. We expect approximately half of this benefit to be realized in 2026, with the remainder flowing through in 2027 and 2028. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Raises full-year 2026 revenue and adjusted1 operating income guidance Financial Summary Q2 2026* Revenue of $1.92 billion, up 22.0 percent, or 21.2 percent in constant currency1. On a pro forma2 basis, revenue is down 6.5 percent. GAAP net income of $13 million, or $0.07 per share, up $119 million or $0.94 per share, year-over-year, respectively. Adjusted1 net income of $55 million, or $0.38 per share, up $132 million or $1.02 per share, year-over-year, respectively. Adjusted1 operating income of $203 million, up $144 million year-over-year. Adjusted1 operating margin of 10.6 percent, up 690 basis points year-over-year. Operating cash flow of $37 million, up $48 million year-over year. Free cash flow1 of $11 million, up $41 million year-over-year. * Profitability metrics for Q2 2026 include $105 million of a pre-tax benefit from the recognition of IEEPA tariff receivables. This benefit is not included in either Operating cash flow or Free cash flow for Q2 2026 as the sale of the receivables is currently accounted for within Financing cash flow. NORWALK, Conn., July 30, 2026--(BUSINESS WIRE)--Xerox Holdings Corporation (NASDAQ: XRX) today announced its 2026 second-quarter results. "Our second-quarter results gave us another reason for confidence," said Louie Pastor, chief executive officer at Xerox. "We made progress on each of our three strategic priorities: stabilizing revenue, increasing profitability, and reducing leverage. As a result, we are raising both revenue and adjusted operating income guidance, as well as our Lexmark gross synergy targets. While we have more to prove, I like how our team is showing up and executing with urgency and discipline." Progress Against Strategic Priorities Q2 2026 Raised Lexmark gross cost synergy target by $50 million to at least $350 million Expanded the 9‑Series A3 lineup in June, adding new mid‑range devices and making the portfolio available to all clients and channel partners Launched new A4 color devices in June under the new unified brand and logo Print and IT Solutions total sales pipelines remain ahead of the prior year Reduced total debt outstanding by more than $200 million: Second-Quarter Key Financial Results Second-Quarter Segment Results Updated 2026 Guidance Revenue: Approximately $7.6 billion Adjusted1,2 Operating Income: $555-$605 million Free Cash Flow1,2: Approximately $250 million Non-GAAP Measures This release refers to the following non-GAAP financial measures: Adjusted1 EPS, which excludes Restructuring and related costs, net, Amortization of intangible assets, non-service retirement-related costs, gain on early extinguishment of debt, and other discrete adjustments from GAAP EPS, as applicable. Adjusted1 operating income and margin, which exclude the EPS adjustments noted above, except the tax expense charge related to the establishment of a valuation allowance against certain deferred tax assets, as well as the remainder of Other expenses (income), net from pre-tax income (loss) and margin. Constant currency1 (CC) revenue change, which excludes the effects of currency translation. Free cash flow 1, which is operating cash flow less capital expenditures. Forward-Looking Statement This presentation and other written or oral statements made from time to time by management contain "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995 and involve certain risks and uncertainties. The words "anticipate", "believe", "estimate", "expect", "intend", "will", "would", "could", "can", "should", "targeting", "projecting", "driving", "future", "plan", "predict", "may" and similar expressions are intended to identify forward-looking statements. The Company’s actual results may differ significantly from the results discussed in the forward-looking statements. These statements reflect management’s current beliefs and assumptions and are subject to a number of other factors that may cause actual results to differ materially. Such factors include but are not limited to: applicable market conditions; global macroeconomic conditions, including inflation, slower growth or recession, delays or disruptions in the global supply chain, higher interest rates, and wars and other conflicts; our ability to succeed in a competitive environment, including by developing new products and service offerings and preserving our existing products and market share as well as repositioning our business in the face of customer preference, technological, and other change, such as evolving return-to-office and hybrid working trends; failure of our customers, vendors, and logistics partners to perform their contractual obligations to us; our ability to attract, train, and retain key personnel; execution risks around our Transformation; the risk of breaches of our security systems due to cyber, malware, or other intentional attacks that could expose us to liability, litigation, regulatory action or damage our reputation; our ability to obtain adequate pricing for our products and services and to maintain and improve our cost structure; changes in economic and political conditions, licensing requirements, and tax laws in the United States and in the foreign countries in which we do business; the risk that multi-year contracts with governmental entities could be terminated prior to the end of the contract term and that civil or criminal penalties and administrative sanctions could be imposed on us if we fail to comply with the terms of such contracts and applicable law; interest rates, cost of capital, and access to credit markets; risks related to our indebtedness; the imposition of new or incremental trade protection measures such as tariffs and import or export restrictions; funding requirements associated with our employee pension and retiree health benefit plans; changes in foreign currency exchange rates; the risk that we may be subject to new or heightened regulatory or operation risks as a result of our, or third parties,’ use or anticipated use of artificial intelligence technologies; the risk that our operations and products may not comply with applicable worldwide regulatory requirements, particularly environmental regulations and directives and anti-corruption laws; the outcome of litigation and regulatory proceedings to which we may be a party; laws, regulations, international agreements and other initiatives to limit greenhouse gas emissions or relating to climate change, as well as the physical effects of climate change; our ability to successfully integrate the Lexmark business and realize the anticipated benefits thereof, including expected synergies; and other factors that are set forth from time to time in the Company’s Securities and Exchange Commission filings, including the combined Annual Report on Form 10-K of Xerox Holdings and Xerox Corporation. These forward-looking statements speak only as of the date hereof or of the date to which they refer, and the Company assumes no obligation to update or revise any forward-looking statements as a result of new information or future events or developments, except as required by law. Note: To receive RSS news feeds, visit https://www.news.xerox.com. For open commentary, industry perspectives and views, visit http://www.linkedin.com/company/xerox or http://www.youtube.com/XeroxCorp. ©2026 Xerox Corporation. All rights reserved. Xerox® and the Xerox logo are trademarks of XRX Brandco LLC in the United States and/or other countries. Second Quarter 2026 Overview In the second quarter of 2026, overall market trends remained stable compared to the prior year, with demand broadly consistent with recent quarters. The Supreme Court ruling on IEEPA tariffs provided a meaningful benefit to our cost structure in the second quarter of 2026, which we recognized as a receivable and subsequently sold for $80 million in cash. However, ongoing tariff payments, combined with higher memory and oil prices, continue to present headwinds to our cost structure. To date, none of these factors have materially impacted overall demand, apart from certain international markets with exposure to the Middle East conflict. Second quarter 2026 reflects the continued benefits of the Lexmark acquisition and Xerox's transformation efforts. Pro forma1 gross margins expanded year-over-year for the second consecutive quarter, driven by integration synergies, cost discipline, and an increasingly unified operating model. These gains are complemented by new product launches under the unified Xerox brand, growing partner validation, and a more focused go-to-market approach which is collectively positioning the company for continued operational and financial improvement in the second half of 2026 and beyond. Equipment sales revenue of $387 million in the second quarter 2026 increased 15.2% in actual currency and 15.0% in constant currency2 compared to the second quarter 2025, and included a 33.1-percentage point benefit from the Lexmark acquisition. Total equipment installations increased 97.0%, including the impact of the Lexmark acquisition, partially offset by declines in legacy Xerox installations, primarily in entry black-and-white and mid-range color equipment categories. Excluding the Lexmark acquisition, equipment sales revenue declined 17.9% in actual currency due to lower installations and a mix shift toward Entry products. On a pro forma1 basis, second quarter 2026 equipment sales revenue declined 13.0%, primarily reflecting the impacts noted above, partially offset by modest growth from Lexmark. Post sale revenue of $1,346 million in the second quarter 2026 increased 30.7% in actual currency and 29.7% in constant currency2, compared to the second quarter 2025, and included a 37.5-percentage point benefit from the Lexmark acquisition. Excluding the Lexmark acquisition, post sale revenue declined 6.8% in actual currency primarily reflecting lower equipment service revenue and managed print services. Post sale revenue was also adversely impacted by intentional reductions in non-strategic revenue, including the exit of certain production print manufacturing operations in prior years, as well as a decline in financing revenue reflecting the continued sales of finance receivables to our various funding affiliates and lower originations. On a pro forma1 basis, second quarter 2026 revenue decreased 3.9%, primarily reflecting the impacts noted above. IT Solutions revenue of $189 million in the second quarter 2026 declined 10.0% in actual currency and 9.0% in constant currency2, compared to the second quarter 2025. The decline was primarily driven by a mix of revenue subject to net classifications and revenue deferrals. Pre-tax income of $31 million for the second quarter 2026 increased by $91 million compared to a pre-tax (loss) of $(60) million in the second quarter 2025. Pre-tax income margin of 1.6% improved by 5.4-percentage points compared to second quarter 2025 pre-tax (loss) margin of (3.8)% and included a 3.8-percentage point benefit from the Lexmark acquisition. The improvement in the second quarter 2026 pre-tax income margin was primarily due to higher revenue and gross profit, including a 5.5-percentage point benefit related to the IEEPA tariff receivables, Transformation-related cost and productivity actions, as well as lower Other expenses (income), net. The decrease in Other expenses (income), net primarily reflects the early repayment of a portion of our 5.50% Senior Unsecured Notes due August 2028, as well as a portion of our 13.50% Senior Secured Notes due 2031, offset in part by the change in fair value of the warrant dividend liability. These benefits were partially offset by higher SAG and non-financing interest expense, as well as higher RD&E, Amortization of intangible assets and Restructuring and related costs, net driven by the Lexmark acquisition. On a pro forma1 basis second quarter 2026 pre-tax income margin improved by 4.1-percentage points primarily reflecting the impacts noted above. Second quarter 2026 adjusted2 operating income margin of 10.6% increased by 6.9-percentage points compared to second quarter 2025, and included a 6.6-percentage point benefit related to the IEEPA tariff receivables and an approximate 2.0-percentage point benefit from the Lexmark acquisition. Excluding the impact of the IEEPA tariff receivables and the Lexmark acquisition, the decrease reflects lower revenue, including post sale revenue and equipment sales revenue, reflecting an unfavorable revenue mix, including lower outsourcing, service, rental, and other revenues, as well as higher incentive compensation, product cost increases and lower financing fees. These impacts were partially offset by lower SAG expenses as well as productivity and cost savings related to Transformation. On a pro forma1 basis second quarter 2026 adjusted2 operating margin increased by 5.4-percentage points primarily reflecting the impacts noted above, as well as the impact of the Lexmark acquisition. For full-year 2026, we expect revenue of approximately $7.6 billion up from above $7.5 billion, adjusted2 operating income in the range of $555 million to $605 million up from $450 million to $500 million, and free cash flow2 of approximately $250 million. Free cash flow2 guidance reflects proceeds from the sale of IEEPA tariff receivables to a third party, which we expect to be reclassified into operating cash flow. Also benefitting free cash flow2 relative to our initial guidance are lower expected capital expenditures and taxes. This is offset by higher full-year 2026 restructuring charges as a result of our increased synergy target, higher net interest expense as a result of the TPG JV, and lower than previously expected working capital. Costs, Expenses and Other Income Summary of Key Financial Ratios The following is a summary of key financial ratios used to assess our performance: Other Expenses (Income), Net Reportable Segments Our business is organized to ensure we focus on efficiently managing operations while serving our customers and the markets in which we operate. We have two operating and reportable segments – Print and Other and IT Solutions. Segment Review Print and Other The Print and Other segment includes the design, development and sale of document management systems, supplies and services as well as financing and technology-related offerings, digital and print-related software products and services. This segment also includes our recent Lexmark Acquisition, and Xerox Financial Services. In addition to direct sales and end-user customers, we utilize distributors and resellers to sell our equipment, supplies, parts, and maintenance services to end-user customers. Refer to Appendix II, Reportable Segments, for definitions. Revenue Detail by product group is shown below. IT Solutions The IT Solutions segment provides clients of all sizes integrated IT infrastructure solutions, delivering business outcomes through its suite of Device Lifecycle Solutions, and Managed IT Services. The IT Solutions business leverages its professional services and engineering capabilities, along with an extensive partner ecosystem to design, develop and deliver comprehensive Network and Security Solutions, and Infrastructure and Cloud Solutions. This segment provides services to clients in the U.S., Canada, the U.K., and Western Europe. Refer to Appendix II, Reportable Segments, for definitions. Revenue Forward-Looking Statements This press release and other written or oral statements made from time to time by management contain "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995 and involve certain risks and uncertainties. The words "anticipate", "believe", "estimate", "expect", "intend", "will", "would", "could", "can", "should", "targeting", "projecting", "driving", "future", "plan", "predict", "may" and similar expressions are intended to identify forward-looking statements. The Company’s actual results may differ significantly from the results discussed in the forward-looking statements. These statements reflect management’s current beliefs and assumptions and are subject to a number of other factors that may cause actual results to differ materially. Such factors include but are not limited to: applicable market conditions; global macroeconomic conditions, including inflation, slower growth or recession, delays or disruptions in the global supply chain, higher interest rates, and wars and other conflicts, our ability to succeed in a competitive environment, including by developing new products and service offerings and preserving our existing products and market share as well as repositioning our business in the face of customer preference, technological, and other change, such as evolving return-to-office and hybrid working trends; failure of our customers, vendors, and logistics partners to perform their contractual obligations to us; our ability to attract, train, and retain key personnel; execution risks around our Transformation; the risk of breaches of our security systems due to cyber, malware, or other intentional attacks that could expose us to liability, litigation, regulatory action or damage our reputation; our ability to obtain adequate pricing for our products and services and to maintain and improve our cost structure; changes in economic and political conditions, licensing requirements, and tax laws in the United States and in the foreign countries in which we do business; the risk that multi-year contracts with governmental entities could be terminated prior to the end of the contract term and that civil or criminal penalties and administrative sanctions could be imposed on us if we fail to comply with the terms of such contracts and applicable law; interest rates, cost of capital, and access to credit markets; risks related to our indebtedness; the imposition of new or incremental trade protection measures such as tariffs and import or export restrictions; funding requirements associated with our employee pension and retiree health benefit plans; changes in foreign currency exchange rates; the risk that we may be subject to new or heightened regulatory or operation risks as a result of our, or third parties,’ use or anticipated use of artificial intelligence technologies; the risk that our operations and products may not comply with applicable worldwide regulatory requirements, particularly environmental regulations and directives and anti-corruption laws; the outcome of litigation and regulatory proceedings to which we may be a party; laws, regulations, international agreements and other initiatives to limit greenhouse gas emissions or relating to climate change, as well as the physical effects of climate change; our ability to successfully integrate the Lexmark business and realize the anticipated benefits thereof, including expected synergies; and other factors that are set forth from time to time in the Company’s Securities and Exchange Commission filings, including the combined Annual Report on Form 10-K of Xerox Holdings and Xerox Corporation. These forward-looking statements speak only as of the date hereof or of the date to which they refer, and the Company assumes no obligation to update or revise any forward-looking statements as a result of new information or future events or developments, except as required by law. Non-GAAP Financial Measures We have reported our financial results in accordance with generally accepted accounting principles (GAAP). In addition, we have discussed our financial results using the non-GAAP measures described below. We believe these non-GAAP measures allow investors to better understand the trends in our business and to better understand and compare our results. Management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Accordingly, we believe it is necessary to adjust several reported amounts, determined in accordance with GAAP, to exclude the effects of certain items as well as their related income tax effects. However, these non-GAAP financial measures should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our Condensed Consolidated Financial Statements prepared in accordance with GAAP. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are set forth below, as well as in the second quarter 2026 presentation slides available at www.xerox.com/investor. Adjusted Earnings Measures Adjusted Net Income (Loss) and Income (Loss) per share (Adjusted EPS) Adjusted Effective Tax Rate The above measures were adjusted for the following items: Restructuring and related costs, net: Restructuring and related costs, net include restructuring and asset impairment charges as well as costs associated with our Transformation programs beyond those normally included in restructuring and asset impairment charges. Restructuring consists of costs primarily related to severance and benefits paid to employees pursuant to formal restructuring and workforce reduction plans. Asset impairment includes costs incurred for those assets sold, abandoned or made obsolete as a result of our restructuring actions, exiting from a business or other strategic business changes. Additional costs for our Transformation programs are primarily related to the implementation of strategic actions and initiatives and include third-party professional service costs as well as one-time incremental costs. All of these costs can vary significantly in terms of amount and frequency based on the nature of the actions as well as the changing needs of the business. Accordingly, due to that significant variability, we will exclude these charges since we do not believe they provide meaningful insight into our current or past operating performance nor do we believe they are reflective of our expected future operating expenses as such charges are expected to yield future benefits and savings with respect to our operational performance. Amortization of intangible assets: The amortization of intangible assets is driven by our acquisition activity which can vary in size, nature and timing as compared to other companies within our industry and from period to period. The use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods. Non-service retirement-related costs: Our defined benefit pension and retiree health costs include several elements impacted by changes in plan assets and obligations that are primarily driven by changes in the debt and equity markets as well as those that are predominantly legacy in nature and related to employees who are no longer providing current service to the Company (e.g. retirees and ex-employees). These elements include (i) interest cost, (ii) expected return on plan assets, (iii) amortization of prior plan amendments, (iv) amortized actuarial gains/losses and (v) the impacts of any plan settlements/curtailments. Accordingly, we consider these elements of our periodic retirement plan costs to be outside the operational performance of the business or legacy costs and not necessarily indicative of current or future cash flow requirements. This approach is consistent with the classification of these costs as non-operating in Other (income) expenses, net. Adjusted earnings will continue to include the service cost elements of our retirement costs, which are related to current employee service as well as the cost of our defined contribution plans. Transaction and related costs, net: Transaction and related costs, net are costs and expenses primarily associated with certain major or significant strategic M&A projects. These costs are primarily for third-party legal, accounting, consulting and other similar types of professional services as well as potential legal settlements that may arise in connection with those M&A transactions. These costs are considered incremental to our normal operating charges and were incurred or are expected to be incurred solely as a result of the planned transactions. Accordingly, we exclude these expenses from our Adjusted Earnings Measures in order to evaluate our performance on a comparable basis. Discrete, unusual or infrequent items: We excluded the following item(s), when applicable, given their discrete, unusual or infrequent nature and their impact on the comparability of our results for the period to prior periods and future expected trends. Inventory-related impact - exit of certain Production Print manufacturing operations Gain (loss) on early extinguishment of debt Transformation-related costs Lexmark - fixed asset-related purchase accounting adjustment Deferred tax asset valuation allowance Commitment fee expense Lexmark acquisition financing - escrow interest, net Adjusted Operating Income and Margin We calculate and utilize adjusted operating income and margin measures by adjusting our reported pre-tax (loss) and margin amounts. In addition to the costs and expenses noted above as adjustments for our adjusted earnings measures, adjusted operating income and margin also exclude the remaining amounts included in Other (income) expenses, net, which include certain other non-operating costs and expenses. We exclude these amounts in order to evaluate our current and past operating performance and to better understand the expected future trends in our business. Adjusted Gross Profit and Margin We calculate non-GAAP gross Profit and Margin by excluding the inventory impact related to the exit of certain Production Print manufacturing operations, included in Cost of services, maintenance, rentals and other, as well as fixed asset-related purchase accounting adjustments related to the recent acquisition of Lexmark. Constant Currency (CC) To better understand trends in our business, we believe that it is helpful to adjust revenue to exclude the impact of changes in the translation of foreign currencies into U.S. dollars. We refer to this adjusted revenue as "constant currency." This impact is calculated by translating current period activity in local currency using the comparable prior year period's currency translation rate. This impact is calculated for all countries where the functional currency is not the U.S. dollar. Management believes the constant currency measure provides investors an additional perspective on revenue trends. Currency impact can be determined as the difference between actual growth rates and constant currency growth rates. Free Cash Flow To better understand trends in our business, we believe that it is helpful to adjust operating cash flows by subtracting amounts related to capital expenditures. Management believes this measure gives investors an additional perspective on cash flow from operating activities in excess of amounts required for reinvestment. It provides a measure of our ability to repurchase debt, fund acquisitions, and pay dividends. Adjusted Net Income (Loss) and EPS reconciliation Adjusted Effective Tax Rate reconciliation Adjusted Operating Income and Margin reconciliation Adjusted Gross Profit and Margin Free Cash Flow reconciliation GUIDANCE Adjusted Operating Income Free Cash Flow Pro Forma Basis To better understand the trends in our business, we discuss our 2026 operating results by comparing them against 2025 pro forma results. The 2025 pro forma results include estimated results of Lexmark. Lexmark is included in our 2025 results as of July 1, 2025, the effective date of acquisition. We refer to comparisons against these adjusted results as "pro-forma" basis comparisons. The pro forma information has been prepared in accordance with Article 11 of Regulation S-X, "Pro Forma Financial information." The pro forma information is presented to facilitate comparisons with our results following the acquisition. Lexmark's 2025 historical results have been adjusted to reflect the costs of financing the transactions, fair value adjustments related to inventory, real and personal property (equipment and computer hardware and software) and intangible assets. In addition, adjustments were made to conform Lexmark's accounting policies to those of Xerox, including deferred revenue and inventory. In accordance with Article 11 of Regulation S-X, these proforma results exclude adjustments associated with transaction related costs which are already included in the historical financial statements. We believe comparisons on a pro-forma basis are more meaningful than the actual comparisons given the size and nature of the Lexmark acquisition. We believe the pro forma basis comparisons allow investors to have a better understanding and additional perspective of the expected trends in our business as well as the impact of the Lexmark acquisition on the Company’s operations. The pro forma financial information is based upon available information and assumptions that we believe are reasonable and is for illustrative purposes only. The pro forma combined financial information below should be read in conjunction with the consolidated financial statements and related notes to our 2025 Form 10-K. Certain pro forma monetary amounts, percentages, and other financial figures included in the Company’s second quarter 2026 earnings materials, including the prepared remarks, investor presentation, and press release have been subject to rounding adjustments. Accordingly, minor differences may exist among such materials. These variances, which result solely from rounding, are not considered material. Pro Forma Revenues and Key Financial Ratios Pro Forma Print and Other Revenue Pro Forma Adjusted Gross Profit and Margin Pro Forma Adjusted Operating Income and Margin reconciliation APPENDIX I Xerox Holdings Corporation Earnings (Loss) per Share APPENDIX II Xerox Holdings Corporation Reportable Segments Our reportable segments - Print and Other and IT Solutions - are aligned to how the Chief Operating Decision Maker (CODM), our Chief Executive Officer (CEO), allocates resources and assesses performance against the Company’s key growth strategies and are consistent with how we manage the business and view the markets we serve. Our Print and Other segment includes the design, development and sale of document management systems, supplies and services, as well as associated financing and technology-related offerings, digital and print-related software products and services. The segment also includes the delivery of managed services that involve a continuum of solutions and services that help our customers optimize their print and communications infrastructure, apply automation and simplification to maximize productivity, and ensure the highest levels of security. In addition, the segment includes Xerox Financial Services, a global financing solutions provider, primarily enabling the sale of our equipment and services, which includes commissions and other payments for the exclusive right to provide lease financing for Xerox products. The product groupings range from: "Entry", which include A4 devices and desktop printers and multifunction devices that primarily serve small and medium workgroups/work teams. "Mid-Range", which include A3 devices that generally serve large workgroup/work team environments as well as products in the Light Production product groups serving centralized print centers, print for pay and low volume production print establishments. "High-End", which include production printing and publishing systems that generally serve the graphic communications marketplace and print centers in large enterprises. Customers range from small and mid-sized businesses to large enterprises. Customers also include graphic communication enterprises as well as channel partners including distributors and resellers. Our IT Solutions segment provides clients of all sizes integrated IT infrastructure solutions, delivering business outcomes through its suite of Device Lifecycle Solutions, and Managed IT Services. The IT Solutions business leverages its professional services and engineering capabilities, along with an extensive partner ecosystem to design, develop and deliver comprehensive Network and Security Solutions, and Infrastructure and Cloud Solutions. This segment provides services to clients in the U.S., Canada, the U.K., and Western Europe. View source version on businesswire.com: https://www.businesswire.com/news/home/20260730269257/en/ Contacts Media Contact: Justin Capella, Xerox, [email protected] Investor Contact: Greg Stein, Xerox, [email protected]

Xerox Holdings Corporation (XRX) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to a loss of $0.64 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +500.00%. A quarter ago, it was expected that this company would post a loss of $0.2 per share when it actually produced a loss of $0.11, delivering a surprise of +45%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Xerox, which belongs to the Zacks Office Supplies industry, posted revenues of $1.92 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.96%. This compares to year-ago revenues of $1.58 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Xerox shares have added about 11.4% since the beginning of the year versus the S&P 500's gain of 6.9%. While Xerox has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Xerox was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.10 on $1.88 billion in revenues for the coming quarter and $0.03 on $7.59 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Office Supplies is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Industrial Products sector, Astec Industries (ASTE), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This maker of equipment for building, paving and mining is expected to post quarterly earnings of $1.05 per share in its upcoming report, which represents a year-over-year change of +19.3%. The consensus EPS estimate for the quarter has been revised 1.4% higher over the last 30 days to the current level. Astec Industries' revenues are expected to be $402.5 million, up 21.9% from the year-ago quarter. 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 Xerox Holdings Corporation (XRX) : Free Stock Analysis Report Astec Industries, Inc. (ASTE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended June 2026, Xerox Holdings Corporation (XRX) reported revenue of $1.92 billion, up 22% over the same period last year. EPS came in at $0.36, compared to -$0.64 in the year-ago quarter. The reported revenue represents a surprise of +0.96% over the Zacks Consensus Estimate of $1.9 billion. With the consensus EPS estimate being $0.06, the EPS surprise was +500%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Xerox performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue- Equipment Sales- Entry: $140 million compared to the $122.42 million average estimate based on two analysts. The reported number represents a change of +174.5% year over year. Revenue- Equipment Sales- Mid-range: $162 million compared to the $215.71 million average estimate based on two analysts. The reported number represents a change of -31.1% year over year. Revenue- Equipment Sales- High-end: $82 million versus the two-analyst average estimate of $39.06 million. The reported number represents a year-over-year change of +86.4%. Revenue- Print and Other- Equipment sales: $387 million compared to the $383.34 million average estimate based on two analysts. The reported number represents a change of +15.2% year over year. Revenue- Equipment Sales: $387 million versus the two-analyst average estimate of $383.34 million. The reported number represents a year-over-year change of +15.2%. Revenue- Print and Other: $1.73 billion compared to the $1.72 billion average estimate based on two analysts. The reported number represents a change of +26.9% year over year. Revenue- Equipment Sales- Other: $3 million versus $6.15 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -50% change. Revenue- IT Solutions: $194 million versus the two-analyst average estimate of $189.79 million. Revenue- Print and Other- Post sale revenue: $1.35 billion compared to the $1.33 billion average estimate based on two analysts. The reported number represents a change of +30.7% year over year. View all Key Company Metrics for Xerox here>>> Shares of Xerox have returned -14.8% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. 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 Xerox Holdings Corporation (XRX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Xerox Holdings Corp. (NASDAQ:XRX) reported second-quarter results on Thursday that topped Wall Street estimates for earnings and revenue, helped by improved profitability, the integration of Lexmark and a one-time tariff-related benefit. Following the results, the stock jumped nearly 27%. The rally was likely magnified by elevated short interest, with 32% of the public float sold short, signaling substantial bearish positioning that may have fueled a squeeze. The company has a short float of 36.47 million shares, representing 32.09% of its publicly traded float, indicating an exceptionally high level of short interest. Adjusted earnings came in at 38 cents per share, beating the analyst consensus estimate for a loss of 14 cents per share. Revenue rose to $1.92 billion from $1.58 billion a year earlier and exceeded the Street estimate of $1.90 billion. On a pro forma basis, which includes Lexmark in the prior-year comparison, revenue declined 6.5%. GAAP net income was $13 million, or 7 cents per share, compared with a loss of $106 million, or 87 cents per share, a year earlier. Adjusted operating income increased to $203 million from $59 million, while adjusted operating margin expanded to 10.6% from 3.7%. The quarter included a $105 million pre-tax benefit related to the recognition of IEEPA tariff receivables following a recent U.S. Supreme Court ruling. The company’s Print and Other segment generated $1.73 billion in revenue, while IT Solutions revenue declined to $194 million from $213 million a year earlier. View more earnings on XRX Operating cash flow improved to $37 million from a use of $11 million a year earlier, and free cash flow increased to $11 million from a negative $30 million. Xerox ended the quarter with $495 million in cash and cash equivalents, compared with $512 million as of Dec. 31, 2025. Total debt, including the current portion, stood at $4.22 billion, compared with $4.25 billion at the end of 2025. Chief Executive Officer Louie Pastor said the company made progress on its priorities of stabilizing revenue, increasing profitability and reducing leverage. Xerox also increased its Lexmark gross cost synergy target by $50 million to at least $350 million during the quarter. For fiscal 2026, Xerox now expects revenue of approximately $7.6 billion, compared with analysts’ estimate of $7.61 billion. The company also raised its adjusted operating income outlook to a range of $555 million to $605 million from its prior forecast of $450 million to $500 million and reiterated free cash flow guidance of about $250 million. XRX Stock Price Activity: Xerox shares were up 26.78% at $3.347 during premarket trading on Thursday, according to Benzinga Pro data. Photo by T. Schneider via Shutterstock Read Also: Robinhood CEO Says Hitting a $1 Trillion Valuation Will Be 'Very, Very Difficult'— but He Thinks It 'Can Be Done' UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga: XEROX HOLDINGS (XRX): Free Stock Analysis Report This article Heavily Shorted Xerox Stock Sees Short Squeeze Surge After Earnings originally appeared on Benzinga.com © 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Wall Street expects a year-over-year increase in earnings on higher revenues when Xerox Holdings Corporation (XRX) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of +109.4%. Revenues are expected to be $1.9 billion, up 20.8% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 40.63% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Xerox, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -100.00%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Xerox will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Xerox would post a loss of$0.2 per share when it actually produced a loss of -$0.11, delivering a surprise of +45.00%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Xerox doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. 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 Xerox Holdings Corporation (XRX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research