Xerox (NASDAQ:XRX) Stock Rating Upgraded by Zacks Research

Xerox (NASDAQ:XRX) was upgraded by research analysts at Zacks Research from a “strong sell” rating to a “hold” rating in a research note issued to investors on Thursday,Zacks.com reports.

XRX has been the subject of several other reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Xerox in a research note on Monday. Citigroup reaffirmed a “neutral” rating and set a $2.50 price target (down from $3.50) on shares of Xerox in a research note on Friday, January 30th. Two research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Reduce” and a consensus price target of $2.50.

Xerox Price Performance

NASDAQ XRX opened at $2.70 on Thursday. The business has a 50 day simple moving average of $1.56 and a 200 day simple moving average of $2.27. Xerox has a 52-week low of $1.19 and a 52-week high of $6.80. The company has a debt-to-equity ratio of 14.04, a quick ratio of 0.79 and a current ratio of 1.18. The stock has a market cap of $353.11 million, a price-to-earnings ratio of -0.33 and a beta of 2.28.

Xerox (NASDAQ:XRX) last posted its earnings results on Thursday, April 30th. The information technology services provider reported ($0.11) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.20) by $0.09. Xerox had a negative return on equity of 12.08% and a negative net margin of 14.09%.The business had revenue of $1.85 billion during the quarter, compared to analysts’ expectations of $1.78 billion. During the same period in the prior year, the business earned ($0.06) EPS. Xerox’s revenue for the quarter was up 26.7% compared to the same quarter last year. Analysts anticipate that Xerox will post 0.29 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of XRX. Goldman Sachs Group Inc. grew its position in Xerox by 339.3% in the fourth quarter. Goldman Sachs Group Inc. now owns 9,294,446 shares of the information technology services provider’s stock valued at $22,028,000 after acquiring an additional 7,178,915 shares during the last quarter. First Eagle Investment Management LLC bought a new position in Xerox in the third quarter valued at about $4,333,000. Charles Schwab Investment Management Inc. grew its position in Xerox by 32.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,498,232 shares of the information technology services provider’s stock valued at $8,291,000 after acquiring an additional 854,119 shares during the last quarter. Jacobs Levy Equity Management Inc. grew its holdings in shares of Xerox by 123.2% during the third quarter. Jacobs Levy Equity Management Inc. now owns 1,528,219 shares of the information technology services provider’s stock worth $5,746,000 after purchasing an additional 843,504 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. raised its holdings in Xerox by 104.5% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 1,585,215 shares of the information technology services provider’s stock valued at $3,900,000 after buying an additional 809,861 shares during the last quarter. Institutional investors own 85.36% of the company’s stock.

Key Headlines Impacting Xerox

Here are the key news stories impacting Xerox this week:

• Positive Sentiment: Q1 revenue and EPS vs. estimates: Xerox reported Q1 revenue of about $1.85B (up ~27% YoY) and reported EPS of -$0.11, beating consensus revenue and EPS estimates — a key near-term catalyst for the rally. Xerox Releases First-Quarter Results
• Positive Sentiment: Market reaction / momentum: Analysts and headlines highlighted the beat and CEO optimism, driving intraday gains and a breakout after weeks of being heavily shorted. News coverage points to the earnings beat and management tone as the main reasons for the surge. Why Xerox Stock Is Surging On Friday?
• Positive Sentiment: Short-squeeze and options activity: High short interest plus heavy call buying and unusual options flows amplified the move higher — traders report spikes in call volume and short-covering that accelerated the rally. Short Squeeze And Earnings
• Neutral Sentiment: Product/service update: Xerox launched “Xerox IT as a Service” targeting SMBs — a growth initiative that supports revenue diversification but will take time to scale. Xerox Launches Xerox IT as a Service
• Neutral Sentiment: Earnings detail and management commentary: The Q1 earnings transcript and slide deck show management is focused on stabilizing revenue, expanding adjusted operating margin and improving liquidity — useful for assessing sustainability of the recovery. Xerox (XRX) Q1 2026 Earnings Transcript
• Negative Sentiment: Profitability and leverage remain concerns: Xerox is still reporting negative net margins and remains highly leveraged (debt-to-equity is elevated), which limits upside unless operating profits improve. Xerox Reports Q1 Loss, Tops Revenue Estimates
• Negative Sentiment: Contrarian/options signals: Earlier spikes in put buying and very choppy, high-volume trading indicate continued volatility and the possibility of sharp reversals as shorts re-enter or momentum fades.

About Xerox

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.