v3.26.1
Shareholder's Equity of Xerox
 6 Months Ended
Jun. 30, 2026
Stockholders' Equity Note [Abstract]  
Shareholder's Equity of Xerox Shareholders’ Equity of Xerox Holdings
(shares in thousands)
The shareholders' equity information presented below reflects the consolidated activity of Xerox Holdings.
Common
Stock(1)
Additional
Paid-in
Capital
Retained
Earnings
AOCL(2)
Xerox Holdings
Shareholders’
Equity
Non-controlling
Interests
Total
Equity
Balance at March 31, 2026$131 $1,192 $2,320 $(3,344)$299 $6 $305 
Comprehensive income, net— — 13 10 23 — 23 
Cash dividends declared - common(3)
— — (4)— (4)— (4)
Cash dividends declared - preferred(4)
— — (3)— (3)— (3)
Stock option and incentive plans, net— 8 — — 8 — 8 
Transactions with noncontrolling interests— — — — — 1 1 
Balance at June 30, 2026$131 $1,200 $2,326 $(3,334)$323 $7 $330 
Common
Stock(1)
Additional
Paid-in
Capital
Retained
Earnings
AOCL(2)
Xerox Holdings
Shareholders’
Equity
Non-
controlling
Interests
Total
Equity
Balance at March 31, 2025$126 $1,141 $3,403 $(3,617)$1,053 $4 $1,057 
Comprehensive (loss) income, net— — (106)169 63 — 63 
Cash dividends declared - common(3)
— — (4)— (4)— (4)
Cash dividends declared - preferred(4)
— — (3)— (3)— (3)
Stock option and incentive plans, net— 13 — — 13 — 13 
Transactions with noncontrolling interests— — — — — 1 1 
Balance at June 30, 2025$126 $1,154 $3,290 $(3,448)$1,122 $5 $1,127 
Common
Stock(1)
Additional Paid-in CapitalRetained Earnings
AOCL(2)
Xerox Holdings Shareholders’ EquityNon-controlling Interests
Total
Equity
Balance at December 31, 2025$128 $1,183 $2,444 $(3,311)$444 $5 $449 
Comprehensive (loss), net— — (92)(23)(115)— (115)
Cash dividends declared - common(3)
— — (7)— (7)— (7)
Cash dividends declared - preferred(4)
— — (7)— (7)— (7)
Distribution of stock warrants(5)
— — (12)— (12)— (12)
Stock option and incentive plans, net3 17 — — 20 — 20 
Transactions with noncontrolling interests— — — — — 2 2 
Balance at June 30, 2026$131 $1,200 $2,326 $(3,334)$323 $7 $330 
Common
Stock(1)
Additional Paid-in CapitalRetained Earnings
AOCL(2)
Xerox Holdings Shareholders’ EquityNon-controlling Interests
Total
Equity
Balance at December 31, 2024$124 $1,137 $3,514 $(3,699)$1,076 $4 $1,080 
Comprehensive (loss) income, net— — (196)251 55 — 55 
Cash dividends declared - common(3)
— — (21)— (21)— (21)
Cash dividends declared - preferred(4)
— — (7)— (7)— (7)
Stock option and incentive plans, net2 17 — — 19 — 19 
Transactions with noncontrolling interests— — — — — 2 2 
Distributions to noncontrolling interests— — — — — (1)(1)
Balance at June 30, 2025$126 $1,154 $3,290 $(3,448)$1,122 $5 $1,127 
____________
(1)Common Stock has a par value of $1 per share.
(2)Refer to Note 18 - Other Comprehensive Income (Loss) for the components of AOCL.
(3)Cash dividends declared on common stock for the three months ended June 30, 2026 and 2025 were $0.025 per share and $0.025 per share, respectively and $0.05 per share and $0.15 per share for the six months ended June 30, 2026 and 2025, respectively.
(4)Cash dividends declared on preferred stock for the three and six months ended June 30, 2026 and 2025 were $20.00 and $40.00 per share, respectively.
(5)Refer to the Warrant Dividend section below for additional information.
Common Stock
The following is a summary of the changes in common stock shares:
Common Stock Shares
Balance at December 31, 2025128,044 
Stock based compensation plans, net2,732 
Balance at March 31, 2026130,776 
Stock based compensation plans, net465 
Exercise of warrants2 
Balance at June 30, 2026131,243 
Warrant Dividend
In January 2026 the Board of Directors of Xerox Holdings Corporation (Xerox Holdings) approved a pro-rata distribution of warrants to holders (collectively, the Eligible Holders) of Xerox’s common stock, par value $1.00 per share (the Common Stock), Series A Convertible Perpetual Voting Preferred Stock (the Series A Preferred Stock) and 3.75% Convertible Senior Notes due 2030 (the Convertible Notes).
On February 12, 2026, 77,271,234 warrants were issued and distributed, at no cost, to the Eligible Holders of record as of the close of business on February 9, 2026. Each holder of record of the Common Stock as of the Record Date received one warrant for every two shares of Xerox Holdings common stock held, rounded down to the nearest whole warrant. Holders of record of the Series A Preferred Stock and the Convertible Notes received warrants based on the same ratio in the manner determined by the charter governing the Series A Preferred Stock and the indenture governing the Convertible Notes, respectively.
Each warrant entitles the holder to purchase one share of Common Stock (the Warrant Exercise Rate) at an exercise price of $8.00 per share (the Warrant Exercise Price), subject to the terms and conditions of the warrant agreement, and may be exercised (a) for cash, at any time prior to expiration of the warrants, and (b) using designated outstanding Xerox debt securities (the Designated Notes) at any time prior to the earlier of the expiration of the warrants and the termination of the right to use Designated Notes to exercise warrants. Xerox Holdings Corporation may also elect, in its sole and absolute discretion, to remove one or more or all series of its or Xerox Corporation’s notes from being “Designated Notes,” by giving notice to holders of warrants by way of press release. Such redesignation shall only be effective 20 consecutive Business Days from (and including) the date of publication of notice.
The Warrant Exercise Rate is subject to certain customary anti-dilution adjustments as set forth in the warrant agreement and Xerox Holdings Corporation’s right to voluntarily increase the Warrant Exercise Rate in its sole and absolute discretion from time to time. The Warrant Exercise Price is subject to Xerox Holdings Corporation’s right to voluntarily decrease the Warrant Exercise Price in its sole and absolute discretion from time to time.
The warrants have an expiration date of two years from the distribution date, unless an Early Expiration Price Condition Date (as defined below) is met, in which case the expiration will be accelerated. The warrants will be subject to early expiration if the volume-weighted average price of Xerox common stock equals or exceeds 100% of the then-applicable warrant exercise price for 20 trading days within any 30 consecutive trading day period (such final day, the Early Expiration Price Condition Date). If this condition is met, the warrants will expire at 5:00 p.m. New York City time on the business day immediately following the Early Expiration Price Condition Date or such other date as Xerox Holdings Corporation may elect in accordance with the warrant agreement.
The warrants are classified as derivative liabilities and are remeasured at fair value at each reporting date. Changes in the fair value of the warrant liability are recognized in Other expenses (income), net in the Condensed Consolidated Statements of Income (Loss). On the date of issuance, a warrant liability of $12 was recognized in Other long-term liabilities in the Condensed Consolidated Balance Sheet. For the three and six months ended June 30, 2026, the Company recorded expense of $14 and $9, respectively. At June 30, 2026, the liability included in Other long-term liabilities was $21.
Shareholder's Equity of Xerox
The shareholder's equity information presented below reflects the consolidated activity of Xerox.
Additional Paid-in CapitalRetained Earnings
AOCL(1)
Xerox Shareholder's EquityNon- controlling Interests
Total
Equity
Balance at March 31, 2026$3,491 $336 $(3,344)$483 $6 $489 
Comprehensive income, net— 16 10 26 — 26 
Dividends declared to parent— (7)— (7)— (7)
Transfers from parent14 — — 14 — 14 
Investment from noncontrolling interests— — — — 1 1 
Balance at June 30, 2026$3,505 $345 $(3,334)$516 $7 $523 
Additional Paid-in CapitalRetained Earnings
AOCL(1)
Xerox Shareholder's Equity
Non-
controlling
Interests
Total
Equity
Balance at March 31, 2025$3,474 $1,397 $(3,617)$1,254 $4 $1,258 
Comprehensive (loss) income, net— (104)169 65 — 65 
Dividends declared to parent— (6)— (6)— (6)
Transfers to parent(6)— — (6)— (6)
Transactions with noncontrolling interests— — — — 1 1 
Balance at June 30, 2025$3,468 $1,287 $(3,448)$1,307 $5 $1,312 
Additional Paid-in CapitalRetained Earnings
AOCL(1)
Xerox Shareholder's EquityNon- controlling Interests
Total
Equity
Balance at December 31, 2025$3,492 $448 $(3,311)$629 $5 $634 
Comprehensive (loss), net— (89)(23)(112)— (112)
Dividends declared to parent— (14)— (14)— (14)
Transfers from parent13 — — 13 — 13 
Transactions with noncontrolling interests— — — — 2 2 
Balance at June 30, 2026
$3,505 $345 $(3,334)$516 $7 $523 
Additional Paid-in CapitalRetained Earnings
AOCL(1)
Xerox Shareholder's EquityNon- controlling Interests
Total
Equity
Balance at December 31, 2024$3,487 $1,504 $(3,699)$1,292 $4 $1,296 
Comprehensive (loss) income, net— (191)251 60 — 60 
Dividends declared to parent— (26)— (26)— (26)
Transfers to parent(19)— — (19)— (19)
Transactions with noncontrolling interests— — — — 2 2 
Distributions to noncontrolling interests— — — — (1)(1)
Balance at June 30, 2025
$3,468 $1,287 $(3,448)$1,307 $5 $1,312 
_____________
(1)Refer to Note 18 - Other Comprehensive Income (Loss) for the components of AOCL.