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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Why Xerox (XRX) Shares Are Falling Today

XRX Cover Image

What Happened?

Shares of document technology company Xerox (NASDAQ: XRX) fell 15.9% in the afternoon session after the company announced a reduction in its quarterly dividend to $0.025 per share, or $0.10 annually, to improve its balance sheet and ensure sufficient capital is available to finalize its acquisition of Lexmark. 

Despite the dividend cut, the company offered a positive outlook. It reaffirmed its 2025 financial guidance, signaling confidence in the business. Management also anticipated that the Lexmark acquisition would contribute to adjusted earnings per share and free cash flow, indicating that the deal is expected to strengthen profitability and liquidity. 

Additionally, the company projected at least $238 million in cost and revenue synergies from the acquisition, achievable within two years.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Xerox? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Xerox’s shares are very volatile and have had 28 moves greater than 5% over the last year. But moves this big are rare even for Xerox and indicate this news significantly impacted the market’s perception of the business.

Xerox is down 46.5% since the beginning of the year, and at $4.42 per share, it is trading 69.5% below its 52-week high of $14.48 from June 2024. Investors who bought $1,000 worth of Xerox’s shares 5 years ago would now be looking at an investment worth $253.30.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.

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