The Company has two equity incentive plans: the 2009 Stock Plan (“2009 Plan”) and the 2017 Equity Incentive Plan (“2017 Plan”). All shares that remain available for future grants are under the 2017 Plan. As of January 31, 2026, options to purchase 739,356 shares of Class A common stock and 330,688 shares of Class B common stock remained outstanding.

The Company’s equity incentive plans provide for granting stock options, RSUs, restricted stock awards to employees, consultants, officers and directors and RSUs with market-based vesting conditions to certain executives. In addition, the Company offers an ESPP to eligible employees.

Stock-based compensation expense by award type was as follows:


	Year Ended January 31,
		2026		2025		2024
		(dollars in millions)
Stock options		$	1	$	14	$	45
RSUs		476		475		490
Market-based RSUs		44		25		12
ESPP		16		17		26
Restricted stock awards		7		34		111

Total		$	544	$	565	$	684

Stock-based compensation expense was recorded in the following cost and expense categories in the consolidated statements of operations:


	Year Ended January 31,
	2026		2025		2024
	(dollars in millions)
Cost of revenue:
Subscription	$	74	$	82	$	75
Professional services and other	10		12		15
Research and development	196		216		277
Sales and marketing	132		131		156
General and administrative	132		124		161
Total	$	544	$	565	$	684

Options issued under the Plan generally are exercisable for periods not to exceed ten years and generally vest over four years with 25% vesting after one year and with the remainder vesting monthly thereafter in equal installments. Shares offered under the Plan may be: (i) authorized but unissued shares or (ii) treasury shares.

A summary of stock option activity and related information was as follows:


	Number of Options (in thousands)	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in millions)
















Outstanding as of January 31, 2025	2,199	$	57.98	2.8	$	137

Exercised	(1,128)	10.11
Expired	(1)	30.56

Outstanding as of January 31, 2026	1,070	$	108.43	3.1	$	36
As of January 31, 2026
Vested and expected to vest	1,070	$	108.43	3.1	$	36
Vested and exercisable	1,070	$	108.43	3.1	$	36

No options were granted during fiscal 2026, 2025 and 2024. The total grant-date fair value of stock options vested was $1 million, $16 million and $48 million during fiscal 2026, 2025 and 2024, respectively. The intrinsic value of the options exercised, which represents the difference between the fair market value of the Company’s common stock on the date of exercise and the exercise price of each option, was $109 million, $213 million and $57 million during fiscal 2026, 2025 and 2024, respectively. Windfall tax benefits realized upon exercise of stock options were $24 million and $47 million during fiscal 2026 and 2025, respectively, while no windfall tax benefits were realized in fiscal year 2024.

A summary of RSU activity and related information was as follows:


	Number of RSUs (in thousands)	Weighted-Average Grant Date Fair Value Per Share
Outstanding as of January 31, 2025	7,479	$	97.15
Granted	4,855	101.12
Vested	(4,761)	103.57
Forfeited	(1,324)	95.67
Outstanding as of January 31, 2026	6,249	$	95.66

The Company granted 4,855,252 RSUs with an aggregate fair value of $491 million during fiscal 2026. As of January 31, 2026, there was a total of $528 million of unrecognized stock-based compensation expense related to unvested RSUs, which is being recognized over a weighted-average period of 1.8 years, based on vesting under the award service conditions. The total fair value of RSUs vested during fiscal 2026, 2025 and 2024 was $460 million, $375 million and $335 million, respectively.

A summary of market-based RSU activity and related information was as follows:


	Number of market-based RSUs (in thousands)	Weighted-Average Grant Date Fair Value Per Share
Outstanding as of January 31, 2025	320	$	190.08
Granted	327	199.63

Vested	(138)	120.98

Outstanding as of January 31, 2026	509	$	214.94

Market-based RSUs granted in fiscal 2026 vest over each of a one-, two- and three-year performance period, each starting on February 1, 2025. The average grant date fair value per target market-based RSU was estimated

based on a Monte Carlo simulation as of the date of grant assuming expected volatility of 58.4%, a risk-free rate of 3.87%, and a dividend yield of 0%.

For each granted market-based RSU award, the number of shares that can be earned ranges from 0% to 200% of the target number of shares based on the relative performance of the per share price of the Company’s common stock as compared to the Nasdaq Composite Index over the respective performance periods and subject to continuous employment through the vesting dates.

As of January 31, 2026 there was a total of $46 million of unrecognized stock-based compensation expense related to unvested market-based RSUs, which is being recognized over a weighted-average period of 0.9 years. The total fair value of market-based RSUs vested during fiscal 2026, 2025 and 2024 was $16 million, $7 million and $0 million, respectively.

As of January 31, 2026, there was $20 million of unrecognized stock-based compensation expense related to unvested restricted stock awards, which is being recognized over a weighted-average period of 1.8 years based on vesting under the award service conditions.

The ESPP provides for 12-month offering periods beginning June 21 and December 21 of each year, and each offering period consists of up to two six-month purchase periods. The ESPP contains a reset provision under which the offering period resets if the fair market value of the Company’s common stock on the purchase date is less than the fair market value on the offering date.

The Company estimated the fair value of ESPP purchase rights using a Black-Scholes option pricing model with the following assumptions:


	Year Ended January 31,
	2026	2025	2024
Expected volatility	31% - 58%	42% - 44%	46% - 74%
Expected term (in years)	0.5 - 1.0	0.5 - 1.0	0.5 - 1.0
Risk-free interest rate	3.53% - 4.28%	4.26% - 5.36%	4.84% - 5.41%
Expected dividend yield	—	—	—

During fiscal 2026, the Company’s employees purchased 578,230 shares of its Class A common stock under the ESPP. The shares were purchased at a weighted-average purchase price of $71.34 per share, with proceeds of $41 million. During fiscal 2025, the Company’s employees purchased 586,149 shares of its Class A common stock under the ESPP. The shares were purchased at a weighted-average purchase price of $71.68 per share, with proceeds of $42 million.

As of January 31, 2026 there was $14 million of unrecognized stock-based compensation expense related to the ESPP which is being recognized over a weighted-average vesting period of 0.9 years.

The Company has a qualified defined contribution plan under Section 401(k) of the Internal Revenue Code covering eligible employees. A portion of employee contributions are matched up to a fixed maximum dollar amount per year per employee. During fiscal 2026, 2025 and 2024, matching contributions related to the plan were $17 million, $18 million and $19 million, respectively.