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Xerox Stock Plunges 40% After Guidance Cut
Why did Xerox stock plunge 40%?
Xerox (XRX) stock plunged about 40% to $1.67 on Thursday after the company cut its 2026 profit and cash flow forecasts and suspended its dividend, citing rising costs and weak print demand.
Key numbers
| Xerox share price (close) | $1.67-40.3% on the day (from $2.79) |
|---|---|
| 2026 adjusted operating income forecast | $450M–$475Mdown from $555M–$605M |
| 2026 free cash flow forecast | $50M–$100Mdown from about $250M |
| Q3 revenue | $1.87B-4.7% YoY |
| Q3 GAAP net loss per share | $7.73adjusted EPS was +$0.02 |
What happened
Xerox (XRX) stock plunged about 40% to $1.67 on Thursday after the company cut its 2026 profit and cash flow forecasts and suspended its dividend, citing rising costs and weak print demand. The company's own forecast for the year (guidance) now calls for adjusted operating profit of $450 million to $475 million, down from $555 million to $605 million. Cash left over after bills (free cash flow) is now expected at $50 million to $100 million, versus about $250 million before. This came even though third-quarter sales of $1.87 billion slightly beat Wall Street expectations.
Why it matters
Xerox's forecast cut shows how higher costs can wipe out profit even when sales hold steady. The company still expects about $7.6 billion in sales this year, but pricier memory chips and oil, more cheap low-margin printers sold, and weaker demand for printing are shrinking what it keeps. With less cash coming in, it has stopped paying dividends (regular payouts to shareholders) to focus on paying down debt.
Who this affects
- MarketbearishMedium impact
- Xerox shareholders lost about 40% in a single day.
- CompanybearishHigh impact
- Less cash and no dividend while Xerox manages heavy debt.
- CompetitorsmixedLow impact
- HP slipped 1.9% and Canon gained 1.5% on Thursday.
- IndustrybearishMedium impact
- Print makers face pricier memory, oil and softer demand.
Xerox vs HP, Pitney Bowes, Canon
How we got here
Xerox shares close at $2.79, up 9.8% the day before earnings.
Xerox reports Q3 results, cuts 2026 forecasts and suspends common and preferred dividends.
Shares close at $1.67, down 40.3% on volume of about 30 million.
Xerox announces exchange of $174M senior notes due 2028 into 2030 notes.
What to watch
- Closing of the $174M debt exchange that pushes some 2028 maturities out to October 2030.2026-11-13
- Fourth-quarter results and whether memory and oil costs keep pressuring Xerox's profit outlook.Q4 2026
Educational content only. Not investment advice.
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