The print and copy giant is in talks over an array of deals reportedly with Japan's Fujifilm Holdings Corp as it aims to find new sources of growth.
A full takeover of Xerox is not on the table, one source was reported to have said.
Xerox has been struggling due to the slide in demand for office printing in today's paperless world.
It has a market cap of around US$7.7bn, while Fujifilm's stands at about US$22bn.
The firm posted fourth-quarter earnings that beat Wall Street's expectations and it also raised its 2018 guidance.
The historic firm reportedly plans to include automatic emergency brakes as standard on two of its 2019 models, the Edge crossover and the Ranger pickup truck.
Analysts at the bank noted the way the firm was a leader in changing the way customers consume media.