Xerox reported second-quarter results that significantly beat analyst expectations for both earnings and revenue, driven by improved profitability and a one-time tariff benefit. This strong performance, coupled with a high short interest, triggered a substantial short squeeze, causing the stock to jump nearly 27%.
Xerox Holdings Corp. (XRX) delivered a significant beat on its Q2 earnings and revenue estimates, reporting adjusted EPS of $0.38 against an expected loss of $0.14, and revenue of $1.92 billion against an estimate of $1.90 billion. This positive surprise was amplified by a substantial short interest of 32% of the public float, leading to a classic short squeeze that propelled the stock up by nearly 27% in premarket trading. This event is a major short-term catalyst for XRX, demonstrating the power of an earnings beat combined with high short interest. For traders, this presents an immediate opportunity for those long on XRX and a significant challenge for short sellers, highlighting the risks associated with heavily shorted stocks around earnings releases. The improved outlook for 2026 further supports a positive sentiment.