Xerox HoldingsXTER:XER2 55 Gross Margin % is 29.74% as of Mar. 2026, which is 17% below its 10-year median of 35.77. GuruFocus rates XTER:XER2 with a GF Score™ of 55/100 and a GF Value™ of €52.35. The stock has 6 warning signs investors should review. Among 2,996 Industrial Products companies, Xerox Holdings ranks better than 51.07% on this metric.
Xerox Holdings Corp gross margin has been in long-term decline. The average rate of decline per year is -5.1%.
The historical rank and industry rank for Xerox Holdings's Gross Margin % or its related term are showing as below:
XTER:XER2'
s Gross Margin % Range Over the Past 10 Years
Min: 27.07 Med: 35.77 Max: 40.75
Current: 27.31
During the past 13 years, the highestGross Margin % of Xerox Holdings was 40.75%. The lowest was 27.07%. And the median was 35.77%.
XTER:XER2's Gross Margin % is ranked better than 51.07% of 2996
companies
in the Industrial Products industry
Industry Median: 26.8
vs XTER:XER2: 27.31
Xerox Holdings had a gross margin of 29.74% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Xerox Holdings was -5.10% per year.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Xerox Holdings had a gross margin of 29.74% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Xerox Holdings Gross Margin % Related Terms
Xerox Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for Xerox Holdings's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XTER:XER2 vs ACTG, ACCO, EBF: Gross Margin % Comparison
For the Business Equipment & Supplies subindustry, Xerox Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Xerox Holdings Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Xerox Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Xerox Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Xerox Holdings (XTER:XER2) has a Gross Margin % of 29.74% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Xerox Holdings and its competitors. This is 17% below median its historical median of 35.77. Over the past decade, Xerox Holdings' Gross Margin % has ranged from 27.07 to 40.75. According to the industry distribution chart, Xerox Holdings ranks #1466 out of 2996 companies in the Industrial Products industry, placing it in the top 48.9%.
Is Xerox Holdings' Gross Margin % too high?
Xerox Holdings' current Gross Margin % of 29.74% is 17% below median its 10-year median of 35.77. Over the past 10 years, this metric has ranged from a low of 27.07 to a high of 40.75. The Industrial Products industry median Gross Margin % is 26.80. Xerox Holdings' value of 29.74% is 11% above this industry median. Based on the distribution chart, Xerox Holdings ranks #1466 out of 2996 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Xerox Holdings has a GF Score™ of 55/100, reflecting its overall financial health beyond just this single metric.
How does Xerox Holdings' Gross Margin % compare to ACTG and ACCO?
According to the Industrial Products industry distribution chart, Xerox Holdings ranks #1466 out of 2996 companies for Gross Margin %. This puts Xerox Holdings in the upper half of its industry. The industry median Gross Margin % is 26.80. Xerox Holdings' value of 29.74% is 11% above this benchmark. Historically, Xerox Holdings' own Gross Margin % has ranged from 27.07 to 40.75 over the past decade. While the company's 10-year median is 35.77 vs. the industry median of 26.80, Xerox Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.80, based on 2,996 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Xerox Holdings's current Gross Margin % of 29.74% is 11% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Xerox Holdings and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xerox Holdings's current Gross Margin % is 29.74%, which is 17% below median its own 10-year median of 35.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xerox Holdings stock overvalued right now?
Xerox Holdings (XTER:XER2) has a current Gross Margin % of 29.74%. The stock's GF Value™ is €52.35, compared to a current price of €13.85 — trading 73.5% below its estimated fair value. The current Gross Margin % is 29.74%, which is 17% below median its 10-year median of 35.77 and 11% above the Industrial Products industry median of 26.80. Xerox Holdings' overall GF Score™ is 55/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Xerox Holdings (XTER:XER2), the current Gross Margin % is 29.74% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Xerox Holdings (XTER:XER2) Overvalued in 2026?
Based on GuruFocus' analysis, Xerox Holdings stock appears to be undervalued.
The current stock price of €13.85 is trading 73.5% below its estimated GF Value™ of €52.35.
Key valuation signals for XTER:XER2:
Gross Margin %: 29.74% (17% below median its 10-year median of 35.77)
GF Value™: €52.35 vs. price of €13.85 (73.5% below fair value)
Industry Position: 11% above the Industrial Products median (#1466 of 2996)
No single metric tells the full story. See the XTER:XER2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xerox Holdings Corp is a workplace technology company, building and integrating services-led, software-enabled, workplace solutions for enterprises large and small. It provide advance document technology, services, software, and integrated IT infrastructure solutions for a range of customers including small and mid-sized businesses, large enterprises, governments and graphic communications providers, and for partners who serve them. Xerox serves customers globally in North America, Europe, Latin America, Brazil, Asia Pacific (APAC), the Middle East, Africa, and India.
55GF Score
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