New York, May 28, 2026, 10:34 EDT
- Xerox shares gained about 2.6% to $3.18 early in the session.
- Shareholders gave the green light to 15 million more shares under the equity plan, the company disclosed in a Wednesday 8-K.
- Xerox shares are moving as investors look at its debt cut moves, the Lexmark deal, and cash flow targets for later this year.
Xerox Holdings shares traded higher Thursday after a new SEC filing disclosed the updated share count, as the office-technology company works on its turnaround plan.
Xerox (XRX.OQ) inched up 8 cents to $3.18 on Nasdaq. Volume was about 1.6 million shares, giving the company a market value of $416 million. The stock moved between $3.05 and $3.23 during the session. The Nasdaq Composite and S&P 500 both closed flat.
Xerox stock is trading under $4, making fresh share issuances tougher for holders. The company said May 27 that shareholders voted in favor of putting another 15 million shares into the 2024 Equity and Performance Incentive Plan.
Xerox is keeping a reserve of about 11.5% of the 130.8 million shares outstanding as of April 30, according to a recent SEC filing. The company isn’t issuing these shares right now but has cleared space for possible future equity awards. Current shareholders would see dilution if Xerox eventually puts those shares on the market.
Xerox shareholders approved the plan amendment with 46.5 million votes for and 15.9 million against, while 915,269 abstained. There were 24.9 million broker non-votes. Xerox also filed an S-8 to put another 15 million shares on the plan, in addition to the 19.9 million shares already registered.
Xerox reported first quarter revenue of $1.85 billion, an increase of 26.7%, with Lexmark boosting results. The company showed a GAAP net loss of $105 million, or 84 cents per share. Adjusted operating income landed at $72 million. Free cash flow was negative $165 million. The numbers come before the equity-plan vote.
Xerox CEO Louie Pastor in April said the company’s priorities are steady revenue, better profit, and reducing leverage. On the earnings call, Pastor told Loop Capital’s Ananda Baruah that the current plan “doesn’t need to change,” though he said there has to be more “rigor and focus.” Xerox Corporation
Xerox CFO Chuck Butler told analysts margins and cash flow should get better later this year, pointing to the fourth quarter as usually the strongest for revenue. He said integration savings are set to rise each quarter.
Xerox said it will buy Lexmark in a $1.5 billion deal, Reuters reported. The move aims to beef up Xerox’s position in A4 color printing and sharpen its fight with HP and Canon. Zeus Kerravala, principal analyst at ZK Research, said cost savings from the deal could help the main business. “Xerox has set themselves up for the future,” Kerravala said. Reuters
Shareholder pressure is picking up. STARTEEPO Invest and Frantisek Bostl said this month they now hold 5.15% of Xerox, and may contact management and the board about business, operations, strategy and future plans.
Xerox still has work to do. The company finished Q1 with $637 million in cash and restricted cash. Debt is at $4.4 billion. Management says they’re counting on stronger cash flow through the rest of 2026. But if memory or oil prices climb, print demand slips, or Lexmark savings run late, leverage could stay high and selling more shares could get tougher.
