Xerox Stock Surges Over 22% on Surprise Q2 Profit and Raised Outlook

Xerox Holdings Corporation (XRX) stock surged 22.4% in pre-open trading Tuesday after the company reported a surprise swing to profitability in its second quarter of 2026 and raised its financial outlook for the full year.

Second-Quarter Turnaround

Xerox announced net income attributable to shareholders of $10 million, or $0.07 per share, a significant reversal from the $109 million loss, or $0.87 per share, reported in the same period a year earlier. On an adjusted basis, earnings came in at $0.38 per share, compared to an adjusted loss of $0.64 per share in the prior-year quarter.

The company's revenue climbed 22% to $1.92 billion from $1.58 billion. According to the report, the quarter's results were bolstered by a $105 million pre-tax benefit from the recognition of IEEPA tariff receivables. While revenue grew 21.2% in constant currency, the company noted that on a pro forma basis, revenue was down 6.5%.

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Raised Guidance and Investor Confidence

Alongside the strong quarterly results, Xerox lifted its fiscal 2026 financial outlook, providing a further catalyst for the stock. The positive report and guidance appear to reinforce a growing investor narrative that management's restructuring efforts are yielding results.

This sentiment is reflected in recent institutional activity. The filing noted that STARTEEPO Invest recently increased its holding to 8.8 million shares, making it the company's second-largest common shareholder. The combination of a clean profit, a revenue beat, and a guidance raise provided a strong signal to a market that had kept the stock near multi-year lows.