Xerox Holdings Corporation (XRX) Stock Analysis

Xerox’s primary competitive advantage lies in its scale, brand recognition, and breadth of offerings in print and managed print services (MPS). The company is now a top-three player in every major print category, with close to half of print revenue derived from A4 devices—a segment favored as clients refresh fleets with smaller, more advanced machines. This positions Xerox alongside HP and Canon, its principal global competitors, but with a differentiated focus on enterprise and workflow solutions.

The recent acquisition of Lexmark has further strengthened Xerox’s vertical integration and expanded its product portfolio, particularly in high-growth adjacencies such as IT solutions and digital services. Pro forma, the combined entity generated $8.6 billion in 2024 revenue, with over two-thirds from recurring sources—an indicator of customer stickiness and revenue stability.

Xerox’s managed print services are recognized for depth and strategic vision, earning leadership status in industry assessments. Its ConnectKey platform and workflow automation tools offer clients productivity gains and cost savings, often cited as reasons for client retention and share gains. Customer satisfaction is reinforced by long-standing relationships and a reputation for reliability, though the company faces ongoing pressure from HP’s aggressive pricing and Canon’s manufacturing scale.

Weaknesses include exposure to secular print declines and a legacy-heavy cost structure. However, the company’s pivot toward IT services and workflow automation, coupled with a global service network, provides a defensible moat relative to less diversified rivals.