Key Highlights

  • Xerox shares are trading 1.38% lower at $2.51 on Wednesday, October 28, 2026.
  • Short interest was 37,174,860 shares as of October 15, 2026, with 14.93 days to cover.
  • Third-quarter results are due Thursday, October 29, 2026, at 6:30 a.m. ET.
  • Second-quarter adjusted operating income was $203 million, a 10.6% margin, versus $59 million.
  • Full-year 2026 adjusted operating income guidance is $555 million to $605 million.

Xerox Shares: Why Is a Sub-$3 Stock Slipping One Day Before Earnings?

Xerox (NASDAQ:XRX) shares are trading 1.38% lower at $2.51 on Wednesday, October 28, 2026, an implied prior close of about $2.545 (calculated). No company release is dated today. The stock closed at $2.505 on Monday, October 26.

The company will issue third-quarter results at 6:30 a.m. ET on Thursday, October 29, with a webcast at 8:00 a.m. ET. At today's price and 131.31 million shares outstanding, the market capitalization is near $330 million (calculated), against trailing 12-month revenue of about $7.76 billion and a trailing net loss of about $939 million. The 52-week range runs from $1.19 to $3.78.

Short Interest: Why Do 14.93 Days to Cover Matter Before the Report?

Short-interest data for the settlement date of October 15, 2026 show 37,174,860 shares sold short, down 1,842,884 from the prior period. That is about 28.3% of shares outstanding (calculated), which is not a float-based figure. Days to cover were 14.93 on average daily volume of about 2.49 million shares.

A position this large relative to daily volume means that a sharp surprise in either direction could move the shares. Short sellers buying back could extend a rise, while confirmation of weak demand could reinforce the bearish view. The next settlement date is October 30, 2026.

Xerox Second Quarter: Did the Guidance Raise Rest on Operations or on One-Time Items?

On July 30, 2026, Xerox reported second-quarter revenue of $1.922 billion, up 22.0% as reported but down 6.5% on a pro forma basis. Adjusted operating income was $203 million, a 10.6% margin, versus $59 million and 3.7% a year earlier. GAAP diluted EPS was $0.07 and adjusted EPS was $0.38, compared with losses of $0.87 and $0.64.

The quarter included a $105 million pre-tax benefit from tariff receivables, which affects comparability with the prior year. Equipment sales were $387 million, up 15.2% reported but down 13.0% pro forma, and post-sale revenue was $1.346 billion, up 30.7% reported but down 3.9% pro forma. The Print and Other segment earned $220 million at a 12.7% margin.

Xerox Balance Sheet and 2026 Outlook: How Much Debt Remains After the Paydown?

Xerox cut debt by more than $200 million in the quarter, including $125 million of 2026 notes repaid at maturity, and booked a $39 million gain on early extinguishment. At June 30, cash was $495 million, long-term debt was $4.153 billion, short-term debt was $70 million and convertible preferred stock was $214 million.

Operating cash flow was $37 million and free cash flow was $11 million. For 2026, management raised revenue guidance to about $7.6 billion, adjusted operating income to $555 million to $605 million from $450 million to $500 million, and targeted free cash flow near $250 million. The target for Lexmark cost synergies rose by $50 million to at least $350 million.

What to Watch Next: October 29 Results and the November 10 Short-Interest Release

Third-quarter results on October 29 will show whether adjusted operating income stays within the raised range and how much of the improvement comes from Lexmark synergies rather than tariff items. The short-interest report for the October 30 settlement date is due November 10.