Xerox Holdings Corporation has already reported its first-quarter 2026 results, with revenue rising to US$1.85 billion while the company recorded a net loss of US$105 million, widening loss per share from continuing operations to US$0.84.
Shortly before that, Xerox introduced its AI-powered IT as a Service platform built on ServiceNow, underscoring its shift from traditional hardware toward a services-led, AI-enabled operating model aimed at SMB and mid-market clients.
Next, we’ll examine how Xerox’s AI-powered IT as a Service launch may reshape its investment narrative and long-term business mix.
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Xerox Holdings Investment Narrative Recap
To own Xerox today, you need to believe its reinvention from print-centric hardware to services and software can eventually translate into a healthier, more durable business, despite ongoing losses. The latest quarter showed higher revenue of US$1.85 billion but a wider net loss of US$105 million, so the near term still hinges on whether new services like IT as a Service can offset restructuring pressures, while persistent unprofitability remains the clearest risk.
The launch of Xerox IT as a Service, an AI-powered platform built on ServiceNow, is the clearest link between recent news and the long term thesis. It speaks directly to the key catalyst many investors are watching: whether Xerox’s push into managed IT and workflow automation can rebalance its mix away from declining print equipment and potentially make better use of past acquisitions and reinvention efforts.
Yet against this reinvention story, investors should be aware that ongoing net losses and pressure on cash generation could…
Read the full narrative on Xerox Holdings (it’s free!)
Xerox Holdings’ narrative projects $7.7 billion revenue and $2.5 billion earnings by 2028. This requires 7.7% yearly revenue growth and a $3.8 billion earnings increase from $-1.3 billion today.
Uncover how Xerox Holdings’ forecasts yield a $10.20 fair value, a 278% upside to its current price.
Exploring Other Perspectives 
XRX 1-Year Stock Price Chart
Four members of the Simply Wall St Community currently place Xerox’s fair value between US$2.25 and US$30.86, underscoring very different expectations. Against this spread, Xerox’s continued net losses and widening loss per share keep the question of business sustainability and execution firmly in focus for anyone assessing its future performance.
Explore 4 other fair value estimates on Xerox Holdings – why the stock might be a potential multi-bagger!
Form Your Own Verdict
Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.
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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.
Companies discussed in this article include XRX.
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