v3.26.1
Leases
9 Months Ended
Apr. 30, 2026
Leases [Abstract]  
Leases
8. Leases
We lease office facilities under noncancellable operating lease arrangements. Our facility leases generally provide for periodic rent increases and may contain escalation clauses and renewal options. Our leases have remaining lease terms of up to 16 years, which include options to extend that are reasonably certain of being exercised. Some of our leases include one or more options to extend the lease for up to 10 years per option, which we are not reasonably certain to exercise. The options to extend are generally at rates to be determined in accordance with the agreements. Options to extend the lease are included in the lease liability if they are reasonably certain of being exercised.
We sublease certain office facilities to third parties. These subleases have remaining lease terms of up to 5 years, one of which includes an option to extend the sublease for up to 3 years.
The components of lease expense were as follows:
Three Months EndedNine Months Ended
(In millions)April 30,
2026
April 30,
2025
April 30,
2026
April 30,
2025
Operating lease cost (1)
$36 $28 $101 $82 
Variable lease cost18 15 
Sublease income(2)(2)(6)(8)
Total net lease cost$40 $31 $113 $89 
(1)Includes short-term leases, which were not material for the three and nine months ended April 30, 2026 and 2025.
Supplemental cash flow information related to operating leases was as follows:
Nine Months Ended
(In millions)April 30,
2026
April 30,
2025
Cash paid for amounts included in the measurement of operating lease liabilities$88 $78 
Right-of-use assets obtained in exchange for operating lease liabilities$140 $210 
Other information related to operating leases was as follows at the dates indicated:
April 30,
2026
July 31,
2025
Weighted-average remaining lease term for operating leases7.4 years8.1 years
Weighted-average discount rate for operating leases4.3 %3.8 %
Future minimum lease payments under noncancellable operating leases as of April 30, 2026 were as follows:
(In millions)
Operating
Leases (1)
Fiscal year ending July 31, 
2026 (excluding the nine months ended April 30, 2026)$21 
2027120 
2028122 
2029126 
2030116 
Thereafter373 
Total future minimum lease payments878 
Less imputed interest(140)
Present value of lease liabilities$738 
(1)Noncancellable future sublease proceeds as of April 30, 2026 totaled $17 million through July 31, 2030 and $1 million thereafter, and are not included in the table above.
Supplemental balance sheet information related to operating leases was as follows at the dates indicated:
(In millions)April 30,
2026
July 31,
2025
Operating lease right-of-use assets$601 $541 
Other current liabilities$83 $69 
Operating lease liabilities655 597 
Total operating lease liabilities$738 $666 
As of April 30, 2026, we have additional operating leases with total minimum lease payments of $40 million primarily for office facilities that have not yet commenced and therefore are not reflected on the condensed consolidated balance sheets nor in the tables above. These operating leases are expected to commence in fiscal years 2026 and 2027 with lease terms ranging from five to 10 years.