Overview
Xerox stock surged 22.4% in pre-open trading after the company said it returned to profitability in the second quarter of 2026 and lifted its full-year guidance. The results delivered a clear upside surprise for a stock characterized in the market as a high-beta name.
Quarterly results
Net income attributable to shareholders was $10 million in the quarter, compared with a loss of $109 million in the same period a year earlier. On a per-share basis, Xerox reported earnings of $0.07 versus a loss of $0.87 in the prior-year period.
On an adjusted basis, the company recorded earnings of $55 million, or $0.38 per share, reversing a prior-year adjusted loss of $0.64 per share. Reported revenue rose 22% to $1.92 billion from $1.58 billion a year ago, with revenue growth of 21.2% in constant currency. However, the company noted that on a pro forma basis, revenue was down 6.5%.
The quarters results included a $105 million pre-tax benefit related to recognition of IEEPA tariff receivables. That one-time benefit was part of the reported swing to profitability in the period.
Market context and shareholder moves
Investor interest in Xerox has been growing alongside the earnings surprise. STARTEEPO Invest has been steadily adding to its position, increasing its holding to 8.8 million shares in July and becoming the second-largest common shareholder. That accumulation, together with the reported profit swing and the decision to raise guidance, has reinforced the narrative that managements restructuring efforts are making progress.
Market breadth was supportive on the day, with the S&P 500 up 0.6%, the Dow Jones Industrial Average up 0.3%, and the Nasdaq Composite up 1.3% as investors digested the pre-market release.
Company commentary and investor access
Management moved quickly to make executives available to investors: CEO Louie Pastor and CFO Chuck Butler were scheduled to review the results in a live webcast at 8 a.m. ET. The pre-market share reaction came before that webcast began, suggesting investors responded to the headline numbers and guidance revision in the earnings release itself.
Analysis snapshot
The combination of a return to profitability on reported and adjusted bases, a double-digit year-over-year revenue increase, a material one-time tariff receivable benefit, and an upward revision to full-year guidance was sufficient to overcome prior skepticism that had kept the stock near multi-year lows. Institutional accumulation further strengthened investor conviction in the turnaround story.