In April 1995, the Company adopted the 1995 Stock Option Plan (the “Option Plan”). The Option Plan, as amended from time to time, had 383.4 million shares of common stock reserved for issuance thereunder as of January 31, 2026. As of January 31, 2026, approximately 40.5 million shares remained available for future grants under the Option Plan. Under the Option Plan, the Company may issue restricted stock unit (“RSU”) awards, performance-based restricted stock unit (“PRSU”) awards, stock options, and other types of stock awards, all of which may be subject to vesting over a specified service term, generally three to four years.

RSUs granted under the Option Plan include time-based RSUs and PRSUs. Time-based RSUs generally vest over a three to four-year service period. The Company grants PRSUs that vest based on the achievement of performance metrics, which can be financial performance, non-financial performance, and/or market conditions, including, but not limited to, the Company’s relative total shareholder return, earnings per share growth, and stock price performance. PRSU awards reflect a target number of shares, and the actual number of shares may range from 0% to 250% based on the achievement of the performance metrics specified. In addition to achievement of performance and/or market conditions, PRSUs generally have a three to five year service requirement.

Options granted under the Option Plan generally have a term of 10 years and must be issued at prices equal to the fair market value of the stock on the date of grant. Options generally vest over a three to four-year service period.

In December 2017, the Company’s Executive Compensation Committee approved a deferred stock program, whereby executives of the Company have the option, beginning in 2018, to defer the settlement of time-based and performance-based restricted stock units granted under the Option Plan to a future date. In June 2021, the Company extended the stock deferral program to members of the Board of Directors. A deferral election is irrevocable after the annual submission deadline. The shares of common stock underlying the deferred grants will be distributed at the earliest of the employee’s specified future settlement date or upon separation from service, a change in control, or death or disability.

In September 2016, the Company’s Board of Directors approved an Outside Director Equity Compensation Policy that governs the grant of equity awards to non-employee directors under the Option Plan. Under the current Outside Director Compensation Policy, each outside director, upon appointment to fill a vacancy on the board or in connection with election at an annual meeting of stockholders, will be granted an RSU award under the Option Plan. The RSU award vests 100% on the earlier of the date of the next annual meeting of stockholders or the one-year anniversary of the date of grant.

In connection with past acquisitions, the Company assumed equity incentive plans of certain acquired companies (collectively “the Assumed Plans”), and the equity awards assumed in connection with each acquisition were granted from their respective assumed plans. The assumed equity awards will be settled in shares of the Company’s common stock and will retain the terms and conditions under which they were originally granted. No additional equity awards will be granted under the Assumed Plans.

Under the 2000 Employee Stock Purchase Plan, as amended and restated on June 23, 2022 (the “ESPP”), participants purchase the Company’s common stock using payroll deductions, which may not exceed 15% of their total cash compensation. The ESPP provides for a 24-month offering period, with four six-month purchase periods. Participants are granted the right to purchase common stock at a price per share that is 85% of the lesser of the fair market value of the common stock at (i) the participant’s enrollment date into the two-year offering period or (ii) the end of each six-month purchase period within the offering period.

Under the ESPP, a total of 1.3 million shares were issued in fiscal 2026 at a weighted-average price of $57.20 per share, a total of 2.3 million shares were issued in fiscal 2025 at a weighted-average price of $36.34 per share, and a total of 2.4 million shares were issued in fiscal 2024 at a weighted-average price of $35.57 per share. As of January 31, 2026, there was $74.0 million of unamortized compensation expense related to the ESPP.

The following table summarizes stock-based compensation expense (in millions):


	Year Ended
	January 31, 2026		February 1, 2025		February 3, 2024

Cost of goods sold	$	49.2	$	47.3	$	49.1
Research and development	409.0		395.6		411.1
Selling, general and administrative	132.6		154.5		149.6






Total stock-based compensation	$	590.8	$	597.4	$	609.8

The income tax benefit recognized from stock-based compensation expense was $89.0 million, $92.2 million and $95.3 million for the years ended January 31, 2026, February 1, 2025 and February 3, 2024, respectively. Stock-based compensation capitalized in inventory was $20.0 million at January 31, 2026, $16.6 million at February 1, 2025 and $18.2 million at February 3, 2024.

The income tax benefit related to equity awards vested or exercised was $31.5 million, $58.5 million and $24.3 million during the years ended January 31, 2026, February 1, 2025 and February 3, 2024, respectively.

A summary of restricted stock and stock unit activity for time-based and performance-based awards is as follows (in millions, except per share amounts):


	Time-Based			Performance-Based
	Number of Shares	Weighted-Average Grant Date Fair Value			Number of Shares	Weighted-Average Grant Date Fair Value





































Unvested Balance at February 1, 2025	12.4	$	56.17		5.2	$	49.19
Granted	10.9	$	61.92		1.7	$	55.84
Vested	(8.7)	$	52.90		(1.0)	$	47.76
Canceled/Forfeited	(2.4)	$	57.73		(1.1)	$	48.47
Unvested Balance at January 31, 2026	12.2	$	63.30		4.8	$	52.05

The aggregate intrinsic value of RSUs vested and expected to vest as of January 31, 2026 was $966.1 million. The weighted-average grant date fair value for RSUs granted was $61.92, $69.93 and $41.50 for the years ended January 31, 2026, February 1, 2025 and February 3, 2024, respectively. The total fair value of RSUs vested during the years ended January 31, 2026, February 1, 2025 and February 3, 2024 was $459.5 million, $491.6 million and $523.7 million, respectively. As of January 31, 2026, unamortized compensation expense related to RSUs was $721.6 million, which is expected to be recognized over a weighted-average period of 2.2 years.

The aggregate intrinsic value of PRSUs vested and expected to vest as of January 31, 2026 was $379.6 million. The weighted-average grant date fair value for PRSUs granted was $55.84, $72.61 and $37.78 for the years ended January 31, 2026, February 1, 2025 and February 3, 2024, respectively. The total fair value of PRSUs vested during the years ended January 31, 2026, February 1, 2025 and February 3, 2024 was $45.9 million, $28.6 million and $56.0 million, respectively. As of January 31, 2026, unamortized compensation expense related to PRSUs was $160.5 million, which is expected to be recognized over a weighted-average period of 1.5 years.

During fiscal 2025, the Company issued a warrant to a customer for the purchase of up to 4.2 million shares (“Fiscal 2025 Warrant Shares”) of the Company’s common stock at an exercise price of $87.77 per share. The warrant has an exercise term of seven years and a vesting term of five years.

During fiscal 2026, the Company issued a warrant to a customer for the purchase of up to 1.0 million shares (“Fiscal 2026 Warrant Shares”) of the Company’s common stock at an exercise price of $87.00 per share. The warrant has an exercise term of six years and a vesting term of five years.



	Fiscal 2025 Warrant Shares	Fiscal 2026 Warrant Shares




Balance outstanding at February 1, 2025	4.1	—
Granted	—	1.0
Vested	(0.6)	—
Cancelled	—	—
Balance outstanding at January 31, 2026	3.5	1.0

The following weighted-average assumptions were used to calculate the fair value of common stock to be issued under the ESPP on the date of grant using the Black-Scholes option pricing model:


	Year Ended
	January 31, 2026			February 1, 2025			February 3, 2024
Employee Stock Purchase Plan:
Estimated fair value	$	31.45		$	38.68		$	21.44
Expected volatility	68		%	54		%	55		%
Expected term (in years)	1.3			1.2			1.3
Risk-free interest rate	4.0		%	4.3		%	5.0		%
Expected dividend yield	0.3		%	0.2		%	0.4		%

The following weighted-average assumptions were used to calculate the fair value of common stock to be issued under PRSU awards on the date of grant using the Monte Carlo pricing model:


	Year Ended
	January 31, 2026		February 1, 2025		February 3, 2024
PRSUs:
Expected term (in years)	3.4		3.0		3.5
Expected volatility	60	%	54	%	50	%
Average correlation coefficient of peer companies	0.7		0.7		0.7
Risk-free interest rate	3.9	%	4.6	%	3.7	%
Expected dividend yield	0.4	%	0.3	%	0.6	%

The correlation coefficients are calculated based upon the price data used to calculate the historical volatilities and is used to model the way in which each entity tends to move in relation to its peers.


	Year Ended
	January 31, 2026			February 1, 2025
Warrant Shares:
Estimated fair value	$	53.02		$	54.44
Expected volatility	57		%	48		%
Expected term (in years)	6.0			7.0
Risk-free interest rate	3.7		%	4.1		%
Expected dividend yield	0.3		%	0.3		%

The Company sponsors a 401(k) savings and investment plan that allows eligible U.S. employees to participate by making pre-tax, Roth and after-tax contributions to the 401(k) plan ranging from 1% to 75% of eligible earnings subject to a required annual limit. Effective January 1, 2026, the Company increased its matching contribution from 100% of 5% of eligible salary (maximum $5,000) to 100% of 6% of eligible salary with a $6,000 maximum contribution. The Company made matching contributions to employees of $14.9 million in fiscal 2026, $14.7 million in fiscal 2025 and $15.5 million in fiscal 2024. As of January 31, 2026, the 401(k) plan offers a variety of investment alternatives, representing different asset classes. Employees may not invest in the Company’s common stock through the 401(k) plan.

The Company also has voluntary defined contribution plans in various non-U.S. locations. In connection with these plans, the Company made contributions on behalf of employees totaling $10.4 million, $11.0 million and $11.4 million during fiscal 2026, 2025 and 2024, respectively.