v3.26.1
Share-based compensation (Tables)
6 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement [Abstract]  
Schedule of Valuation Assumptions The assumptions used in the Monte Carlo simulations for the rTSR granted in 2026 were as follows:
rTSR Fair value assumptions:
Expected annualized volatility29.48 %
Risk free interest rate3.75 %
Simulation period2.8 years
Grant date fair value of rTSR awards$237.16 
The assumptions used in the Black-Scholes option-pricing model in 2026 were as follows:
Stock option fair value assumptions used:
Expected annualized volatility32.14 %
Dividend yield1.54 %
Risk free interest rate3.89 %
Expected term6 years
Grant date fair value of stock option awards$75.22 
Schedule of Award Activity
The following table summarizes the share-based incentive awards activity for the six months ended June 30, 2026:
Number of sharesWeighted average grant date fair value
Outstanding as of December 31, 2025
712,184 $191.67 
RSU awards granted240,598 220.11 
PSU-EX granted90,421 225.58 
Share adjustments based on performance(14,769)289.68 
Vested(4,050)172.40 
Forfeited(18,615)199.14 
Outstanding as of June 30, 2026
1,005,769 $199.87 
Stock option activity in 2026 is summarized in the following table:
Number of sharesWeighted average exercise price per share
Aggregate intrinsic value
(in millions)
Weighted average remaining contractual life (years)
Outstanding as of December 31, 2025
83,316 $211.52 
Granted61,416 231.63 
Outstanding as of June 30, 2026
144,732 $220.06 $3 9.1
Exercisable as of June 30, 2026
19,793 $201.38 $1 8.3
Employee share purchase plan
Ferguson Enterprises Inc. Employee Share Purchase Plan 2021 (the “ESPP”) provides for a limit of 20 million shares of common stock that can be offered for purchase under the plan subject to certain guidelines set forth in the ESPP.
As of June 30, 2026, 19.5 million shares of common stock remain available for purchase under the ESPP. The exercise price per share of common stock is prescribed by the Compensation Committee of the Board for each offering period and may not be less than 85% of the lesser of the fair market value of common stock on the date of grant and the fair market value of common stock on the date of exercise. During the six months ended June 30, 2026 there were approximately 136,659 shares purchased under the ESPP at an average price of $132.23. The expense associated with the ESPP is not material.
Schedule of Share-Based Compensation Awards
The following table relates to all share-based compensation awards:
Three months endedSix months ended
June 30,June 30,
(In millions)2026202520262025
Share-based compensation expense (within SG&A)$20 $6 $35 $15 
Income tax benefit