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Xerox Holdings Corp (XRXDW) Stock Fundamental Analysis & AI Rating 2026

XRXDW Nasdaq Computer Peripheral Equipment, NEC CT CIK: 0001770450
Recently Updated • Analysis: Apr 19, 2026 • SEC Data: 2025-12-31
STRONG SELL
92% Conf
Pending
Analysis scheduled

📊 XRXDW Key Takeaways

Revenue: $7.0B
Net Margin: -14.7%
Free Cash Flow: $187.0M
Current Ratio: 1.11x
Debt/Equity: 9.05x
EPS: $-8.25
AI Rating: STRONG SELL with 92% confidence
Xerox Holdings Corp (XRXDW) receives a STRONG SELL rating with 92% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $7.0B, net profit margin of -14.7%, and return on equity (ROE) of -231.8%, Xerox Holdings Corp demonstrates mixed fundamentals in the Technology sector. Below is our complete XRXDW stock analysis for 2026.

Is Xerox Holdings Corp (XRXDW) a Good Investment?

Claude

Xerox faces a severe profitability crisis with $1.0B net losses on $7.0B revenue, revealing fundamental business model deterioration despite 12.9% revenue growth. Critically thin 3.9% gross margins combined with extreme leverage (9.05x debt-to-equity) and minimal equity cushion ($444M) create imminent distress risk.

Why Buy Xerox Holdings Corp Stock? XRXDW Key Strengths

Claude
  • + Revenue growing 12.9% year-over-year demonstrates top-line demand persistence
  • + Positive operating cash flow of $224M and free cash flow of $187M provide near-term liquidity support
  • + Current ratio of 1.11x maintains adequate short-term solvency threshold

XRXDW Stock Risks: Xerox Holdings Corp Investment Risks

Claude
  • ! Catastrophic $1.0B annual net losses with negative 14.7% net margin signals structural unprofitability
  • ! Dangerously thin 3.9% gross margin indicates core business is non-viable at current cost structure
  • ! Extreme leverage at 9.05x debt-to-equity with only $444M equity cushion versus $9.2B liabilities creates insolvency risk
  • ! Quick ratio of 0.79x below 1.0 threshold signals acute liquidity pressure beyond current ratio
  • ! Negative ROE (-231.8%) and ROA (-10.5%) demonstrate value destruction across all capital metrics
  • ! $4.0B long-term debt burden unsustainable with operating losses eroding equity rapidly

Key Metrics to Watch

Claude
  • * Gross margin trajectory and timeline to positive operating income
  • * Debt covenant compliance and refinancing runway
  • * Equity depletion rate and debt-to-equity ratio acceleration
  • * Operating cash flow sustainability as losses continue

Xerox Holdings Corp (XRXDW) Financial Metrics & Key Ratios

Revenue
$7.0B
Net Income
$-1.0B
EPS (Diluted)
$-8.25
Free Cash Flow
$187.0M
Total Assets
$9.8B
Cash Position
$512.0M

💡 AI Analyst Insight

The relatively thin 2.7% FCF margin may limit capital allocation flexibility.

XRXDW Profit Margin, ROE & Profitability Analysis

Gross Margin 3.9%
Operating Margin N/A
Net Margin -14.7%
ROE -231.8%
ROA -10.5%
FCF Margin 2.7%

XRXDW vs Technology Sector: How Xerox Holdings Corp Compares

How Xerox Holdings Corp compares to Technology sector averages

Net Margin
XRXDW -14.7%
vs
Sector Avg 18.0%
XRXDW Sector
ROE
XRXDW -231.8%
vs
Sector Avg 22.0%
XRXDW Sector
Current Ratio
XRXDW 1.1x
vs
Sector Avg 2.5x
XRXDW Sector
Debt/Equity
XRXDW 9.0x
vs
Sector Avg 0.5x
XRXDW Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Xerox Holdings Corp Stock Overvalued? XRXDW Valuation Analysis 2026

Based on fundamental analysis, Xerox Holdings Corp shows some fundamental concerns relative to the Technology sector in 2026.

Return on Equity
-231.8%
Sector avg: 22%
Net Profit Margin
-14.7%
Sector avg: 18%
Revenue Growth
N/A
Year-over-year
Debt/Equity
9.05x
Sector avg: 0.5x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Xerox Holdings Corp Balance Sheet: XRXDW Debt, Cash & Liquidity

Current Ratio
1.11x
Quick Ratio
0.79x
Debt/Equity
9.05x
Debt/Assets
93.1%
Interest Coverage
N/A
Long-term Debt
$4.0B

XRXDW Revenue & Earnings Growth: 5-Year Financial Trend

XRXDW 5-year financial data: Year 2021: Revenue $9.1B, Net Income $1.4B, EPS $5.80. Year 2022: Revenue $7.1B, Net Income $192.0M, EPS $0.84. Year 2023: Revenue $7.1B, Net Income -$455.0M, EPS $-2.56. Year 2024: Revenue $7.1B, Net Income -$322.0M, EPS $-2.15. Year 2025: Revenue $7.0B, Net Income $1.0M, EPS $-0.09.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Xerox Holdings Corp's revenue has declined by 23% over the 5-year period, indicating business contraction. The most recent EPS of $-0.09 indicates the company is currently unprofitable.

XRXDW Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
2.7%
Free cash flow / Revenue

XRXDW Quarterly Earnings & Performance

Quarterly financial performance data for Xerox Holdings Corp including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $1.5B -$760.0M $-6.01
Q2 2025 $1.6B $18.0M $0.11
Q1 2025 $1.5B -$90.0M $-0.75
Q3 2024 $1.5B $49.0M $0.28
Q2 2024 $1.6B $10.0M $0.02
Q1 2024 $1.5B $71.0M $0.43
Q3 2023 $1.7B $49.0M $0.28
Q2 2023 $1.7B -$4.0M $0.02

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Xerox Holdings Corp Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$224.0M
Cash generated from operations
Capital Expenditures
$37.0M
Investment in assets
Dividends Paid
$71.0M
Returned to shareholders

XRXDW SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Xerox Holdings Corp (CIK: 0001770450)

📋 Recent SEC Filings

Date Form Document Action
Apr 7, 2026 DEF 14A xrx-20260407.htm View →
Apr 2, 2026 8-K d40139d8k.htm View →
Mar 17, 2026 10-K xrx-20251231.htm View →
Mar 13, 2026 4 xslF345X05/ownership.xml View →
Mar 13, 2026 4 xslF345X05/ownership.xml View →

Frequently Asked Questions about XRXDW

What is the AI rating for XRXDW?

Xerox Holdings Corp (XRXDW) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are XRXDW's key strengths?

Claude: Revenue growing 12.9% year-over-year demonstrates top-line demand persistence. Positive operating cash flow of $224M and free cash flow of $187M provide near-term liquidity support.

What are the risks of investing in XRXDW?

Claude: Catastrophic $1.0B annual net losses with negative 14.7% net margin signals structural unprofitability. Dangerously thin 3.9% gross margin indicates core business is non-viable at current cost structure.

What is XRXDW's revenue and growth?

Xerox Holdings Corp reported revenue of $7.0B.

Does XRXDW pay dividends?

Xerox Holdings Corp pays dividends, with $71.0M distributed to shareholders in the trailing twelve months.

Where can I find XRXDW SEC filings?

Official SEC filings for Xerox Holdings Corp (CIK: 0001770450) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is XRXDW's EPS?

Xerox Holdings Corp has a diluted EPS of $-8.25.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is XRXDW a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Xerox Holdings Corp has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is XRXDW stock overvalued or undervalued?

Valuation metrics for XRXDW: ROE of -231.8% (sector avg: 22%), net margin of -14.7% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.

Should I buy XRXDW stock in 2026?

Our dual AI analysis gives Xerox Holdings Corp a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is XRXDW's free cash flow?

Xerox Holdings Corp's operating cash flow is $224.0M, with capital expenditures of $37.0M. FCF margin is 2.7%.

How does XRXDW compare to other Technology stocks?

Vs Technology sector averages: Net margin -14.7% (avg: 18%), ROE -231.8% (avg: 22%), current ratio 1.11 (avg: 2.5).

Is Xerox Holdings Corp carrying too much debt?

XRXDW has a debt-to-equity ratio of 9.05x, which is above the Technology sector average of 0.5x. However, the current ratio of 1.11 suggests adequate short-term liquidity.

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 19, 2026 | Data as of: 2025-12-31 | Powered by Claude AI