• In April 2026, Xerox Holdings reported first‑quarter 2026 revenue of US$1.85 billion, up from US$1.46 billion a year earlier, while its net loss widened to US$105 million and loss per share from continuing operations increased to US$0.84.
• A few days earlier, Xerox also launched its AI-powered “Xerox IT as a Service” platform built on ServiceNow, underscoring its push to evolve from legacy print hardware into a services-led, IT and automation provider for small and mid-sized businesses.
• Next, we’ll examine how this AI-powered Xerox IT as a Service launch influences the company’s investment narrative and long-term repositioning.

Find 50 companies with promising cash flow potential yet trading below their fair value.

Xerox Holdings Investment Narrative Recap

To own Xerox today, you have to believe its reinvention from a legacy print hardware company into a services and software operator can eventually support a more resilient business, even as it remains unprofitable. The latest quarter showed higher revenue but a wider net loss, so the key near term catalyst is whether integration of Lexmark and new IT services products can translate into better margins, while the biggest risk stays execution missteps in this complex transformation rather than this single earnings release.

Among recent announcements, the launch of Xerox IT as a Service stands out as most relevant, because it directly supports the shift toward recurring, IT focused services that underpins the current catalyst around revenue stabilization and margin improvement. Its AI powered, ServiceNow based platform aimed at small and mid sized businesses fits the broader effort to move away from dependence on traditional print equipment, which matters if the company is to offset prior declines in hardware centric segments and make its reinvention initiatives count.

Yet, despite these promising IT offerings, investors should be aware that the integration risks tied to Lexmark and other acquisitions could still...

Xerox Holdings’ narrative projects $7.7 billion revenue and $2.5 billion earnings by 2028.

Uncover how Xerox Holdings' forecasts yield a $10.20 fair value, a 278% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community currently estimate Xerox’s fair value between US$2.25 and US$30.86, reflecting very different expectations. As you review those views, keep in mind that successful execution on the Lexmark and IT services integrations may be crucial for any improvement in profitability and business quality, so it is worth comparing how different investors weigh that in their assumptions.

Explore 4 other fair value estimates on Xerox Holdings - why the stock might be a potential multi-bagger!

The Verdict Is Yours

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your Xerox Holdings research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Xerox Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Xerox Holdings' overall financial health at a glance.

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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.