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what it is
Xerox sells printers, workplace services, and software that keep office paperwork moving.
how it gets paid
Last year Xerox made $6.2B in revenue. Print services was the main engine at $1.7B, or 27% of sales.
what just happened
Xerox posted -$0.10 versus $0.30 expected.
At a glance
C++ balance sheet — some cracks in the foundation
35/100 earnings predictability — expect surprises
6.0% dividend yield — cash in your pocket every quarter
6.0% return on capital — nothing to write home about
-$0.60 fy2025 eps est
xvary composite: 41/100 — below average
What they do
Xerox sells printers, workplace services, and software that keep office paperwork moving.
You do not rip Xerox out of an office overnight. It has 20,500 employees and sells across North America, Europe, Latin America, Eurasia, the Middle East, Africa, Brazil, and India. That spread is the lock-in. The business is sold as services-led, software-enabled workplace solutions, which means the machines, support, and workflows stay bundled. So what: leaving means replacing hardware, service calls, and software at once.
How they make money
$6.2B
annual revenue
Print services
$1.7B
+1.0%
Managed services
$1.5B
+2.0%
Equipment sales
$1.4B
3.0%
Supplies and consumables
$1.1B
1.0%
Financing and rentals
$0.5B
0.0%
The products that matter
hardware manufacturing and sales
Printing Equipment
~$1.4B equipment (table) · hardware-led
Equipment-related revenue on the bridge is ~$1.4B with a modest decline in the table—do not pair that with an old “+26% hardware” story. Hardware still matters as the front door for services.
hardware-led
post-sale support and recurring contracts
Services & Rentals
$2.5B · roughly 40% of sales
This $2.5B segment is where recurring revenue should make the model steadier. The problem is the snapshot does not show a clean growth rate here, which tells you the visibility is thinner than you would want.
recurring mix
customer financing and other revenue
Financing & Other
$0.9B · 15% of sales
At $0.9B, this is not the main event. It matters because it sits next to a balance sheet already carrying $4.3B in long-term debt, so even the smaller segments have to earn their keep.
balance-sheet sensitive
Key numbers
$6.2B
annual revenue
You are buying a company that still clears $6.2B a year, while the stock is worth $213M. That gap is the whole story.
6.0%
dividend yield
On a $1.80 stock, that is about $0.11 a year in cash.
$4.3B
long-term debt
Money owed later means creditors get paid before equity holders. That is bad when the market cap is $213M.
8.9%
operating margin
Every $100 of sales leaves $8.90 before interest and taxes. That is decent, not heroic.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 3 — safer than 50% of stocks
- price stability 20 / 100
- long-term debt $4.3B (95% of capital)
C++ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for XRX right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Xerox posted -$0.10 versus $0.30 expected.
With ~$6.2B FY revenue, a single quarter should be ~$1.5–1.6B ballpark—not $5.0B. Drop the old 155% vs. prior year unless it maps to the same line item as the filing. Gross margin was 29.3%, down 230 basis points (basis points → hundredths of a percent → margins slipped).
~$1.55B
quarter revenue (FY÷4)
-$0.10
eps
29.3%
gross margin
the number that mattered
The miss was -$0.10 EPS against $0.30 expected. That tells you the business still struggles to turn revenue into clean profit.
source: company earnings report, 2026
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What could go wrong
The #1 risk here is margin erosion inside a leveraged print turnaround. Xerox can grow revenue and still disappoint you if too little of that revenue reaches the bottom line.
med
margin compression keeps eating the turnaround
Adjusted gross margin fell to 29.3% in Q4 2025, down 230 basis points — 2.3 percentage points — from a year ago. Adjusted operating margin fell 140 basis points to 5.0%.
If that trend continues, revenue growth becomes cosmetic. You get more sales and not much more earning power.
med
$4.3B of debt limits how patient the market will be
Long-term debt is $4.3B, or 95% of capital. That is a heavy load for a company with a $213M market cap and a C++ balance sheet grade.
High leverage reduces strategic flexibility and makes each earnings miss feel larger because the equity cushion is so thin.
med
the 2026 revenue guide has to work
Management guided to more than $7.5B of 2026 revenue, roughly 7% growth. That forecast is now doing a lot of psychological work for the stock.
Miss the guide, and the low multiple will look less like value and more like the market seeing the problem early.
med
there is no moat to hide behind
Xerox competes in printing and document services against HP and others, and the snapshot shows only a 6.0% return on capital. That is not what durable pricing power looks like.
If competition stays aggressive, the business can remain large without becoming especially profitable. Big is not the same as good.
$4.3B of debt, a 29.3% gross margin, and a 5.0% adjusted operating margin leave very little room for another execution miss.
source: institutional data · regulatory filings · risk analysis
Pay attention to
margin
gross margin has to stop going backward
Q4 adjusted gross margin was 29.3%. If the next print shows another step down, the revenue growth story loses most of its value.
calendar
q1 2026 earnings report
Expected April 28, 2026. Analysts forecast a $0.27 loss per share, so even a small beat or miss can move sentiment in a stock this stressed.
guidance
the >$7.5B revenue target
Management put roughly 7% 2026 growth on the table. You need to see early proof that the business is tracking to it, not just repeating it.
balance sheet
debt and dividend in the same sentence
A 6.0% dividend yield looks generous until you remember long-term debt is $4.3B. If cash gets tighter, the market will question how both priorities coexist.
Analyst rankings
earnings predictability
35 / 100
Low predictability means the earnings line is unreliable. In human-speak, analysts do not view this as a smooth, easy-to-model business.
risk rank
3
That puts it around the middle of the pack on broad risk scoring. The catch is the capital structure makes the downside feel more concentrated than the label suggests.
price stability
20 / 100
A 20 / 100 stability score means this stock does not behave like a quiet value name. It behaves like a stressed turnaround.
source: institutional data
Institutional activity
institutional ownership data for XRX is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$2
current price
n/a
target midpoint · n/a from current
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