v3.26.1
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-based Compensation Expense, Tax Effect
Stock-based compensation expense was as follows:
Year Ended December 31,
202520242023
Stock-based compensation expense, pre-tax$45 $52 $54 
Income tax benefit recognized in earnings9 8 10 
Schedule of Share-Based Payment Arrangement, Performance Shares, Performance Metrics
PSU awards are comprised of a performance-based component (Operating income) as well as a market-based component (Relative Total Shareholder Return (RTSR)). PSUs granted in 2025 and 2024 are entirely performance-based with an RTSR modifier - see Market-Based Component below. PSUs granted in 2023 are entirely market-based. The metrics and weightings are as follows:
Award Year (Metric Weighting)
Performance Metric202520242023
Operating income(1)
100 %— %— %
Operating income improvement(1)
— %100 %— %
Relative total shareholder return— %— %100 %
100 %100 %100 %
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(1)PSUs granted in 2025 and 2024 are performance-based and subject to an operating income metric and an RTSR modifier that may increase or decrease the number of shares that vest by up to 15% and 25%, respectively.
Schedule of Stock-based Payment Award Valuation Assumptions, Performance Shares, Market-based Component Table
A summary of Xerox Holding's key valuation input assumptions used in the Monte Carlo simulation relative to awards granted were as follows:
2025 Award2024 Award2023 Award
Term3 years3 years3 years
Risk-free interest rate(1)
3.92 %4.20 %3.80 %
Volatility(2)
47.92 %42.88 %52.21 %
Weighted average fair value(3)
$5.15 $18.29 $23.00 
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(1)The risk-free interest rate was based on the zero-coupon U.S. Treasury yield curve on the valuation date, with a maturity matched to the performance period.
(2)Volatility is derived from historical stock prices as well as implied volatility when appropriate and available.
(3)The weighted average of fair values used to record compensation expense as determined by the Monte Carlo simulation.
Schedule of Absolute Share Price and TSR Payout, as a Percentage, Comparison to Targets
Our RTSR metrics are compared against total return targets to determine the payout as follows:
202520242023
Payout Percentage
Percentile Ranking Return Targets(1)
Percentile Ranking Return Targets(1)
Percentile Ranking Return Targets(1)
200%n/an/a
75th and above
100%n/an/a50th
50%n/an/a25th
25%n/a
75th and above
n/a
15%
75th and above
n/an/a
0%50th50th
Below 25th
(15)%25th and belown/an/a
(25)%n/a25th and belown/a
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(1)For performance between the levels described above, the degree of vesting is interpolated on a linear basis.
Schedule of Share-based Compensation Arrangements by Share-based Payment Award
Summary of Stock-based Compensation Activity
 202520242023
SharesWeighted Average Grant Date Fair ValueSharesWeighted Average Grant Date Fair ValueSharesWeighted Average Grant Date Fair Value
Restricted Stock Units
Outstanding at January 16,314 $15.48 4,672 $18.46 3,221 $23.16 
Granted(1)
8,951 5.51 4,159 14.09 3,382 16.56 
Vested(2,370)17.78 (2,030)19.04 (1,593)23.73 
Forfeited(973)8.20 (487)17.27 (338)19.27 
Outstanding at December 3111,922 8.13 6,314 15.48 4,672 18.46 
Performance Shares
Outstanding at January 12,066 $21.59 2,039 $24.18 1,729 $28.38 
Granted(1)
1,912 4.46 1,243 13.89 940 22.97 
Vested — — — — — — 
Forfeited/Expired (1,560)15.67 (1,216)17.67 (630)33.86 
Outstanding at December 312,418 11.87 2,066 21.59 2,039 24.18 
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(1)RSUs and PSUs granted in 2025 reflect a higher number of shares granted, primarily due to a lower average grant-date fair value of the Company’s common stock.
Schedule of Unrecognized Compensation Cost, Nonvested Awards
Unrecognized compensation cost related to non-vested stock-based awards at December 31, 2025 was as follows:
AwardsUnrecognized CompensationRemaining Weighted-Average Vesting Period (Years)
Restricted Stock Units$50 1.8
Performance Shares5 2.0
Stock Options(1)
2 1.0
Total$57 
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(1)Reflects CareAR SOs granted in May 2022.
Schedule of Aggregate Intrinsic Value Restricted Stock and Performance Shares Compensation Awards
The aggregate intrinsic value of outstanding stock-based awards was as follows:
AwardsDecember 31, 2025
Restricted Stock Units$28 
Performance Shares6 
Schedule of Vested and Exercised Stock Based Awards Total Intrinsic Value and Tax Benefit Realized
The intrinsic value and actual tax benefit realized for all vested and exercised stock-based awards was as follows:
 December 31, 2025December 31, 2024December 31, 2023
AwardsTotal Intrinsic ValueTax BenefitTotal Intrinsic ValueTax BenefitTotal Intrinsic ValueTax Benefit
Restricted Stock Units$18 $3 $31 $4 $25 $5 
Performance Share Units— — — — — —