v3.26.1
Business Combinations
 9 Months Ended
Apr. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Business Combinations Business Combinations
SquareX, Inc.
On February 5, 2026, we acquired all of the outstanding equity of SquareX, Inc. (“SquareX”), a browser security technology company, for total cash consideration of $112.8 million. The acquisition is expected to extend our browser capabilities, including on unmanaged devices.
Pursuant to the purchase agreement, we issued restricted common stock awards with a grant date fair value of $37.4 million, which are subject to future employment service conditions and will be recognized as stock-based compensation expense over the post-combination service period.
The preliminary purchase price was allocated to $9.8 million of developed technology, valued using the replacement cost approach with an estimated useful life of five years.
The resulting goodwill of $93.0 million is primarily attributable to the assembled workforce and anticipated operational synergies and is not expected to be deductible for income tax purposes.
The purchase price allocation is preliminary and subject to adjustment during a measurement period of up to one year from the acquisition date.
SPLXAI Inc.
On October 31, 2025, we acquired all of the outstanding equity of SPLXAI Inc. ("SPLX"), an early-stage artificial intelligence technology company, for total cash consideration of $40.6 million. The acquisition is expected to extend our AI Security capabilities.
Pursuant to the purchase agreement, we issued restricted common stock awards with a grant date fair value of $16.6 million, which are subject to future employment service conditions and will be recognized as stock-based compensation expense over the post-combination service period.
During the three months ended January 31, 2026, and within the measurement period, we revised the preliminary valuation of acquired intangible assets from $14.1 million to $3.3 million, allocated to developed technology with a useful life of four years. This change resulted from transitioning from a benchmarking valuation approach to a replacement cost approach, which we believe provides a more appropriate measure of fair value.
As a result of this adjustment and the related tax impact, goodwill increased from $32.2 million to $39.2 million and is primarily attributable to the assembled workforce and anticipated operational synergies and is not expected to be deductible for income tax purposes.
The purchase price allocation is preliminary and subject to adjustment during the measurement period of up to one year from the acquisition date.
Red Canary Inc.
On August 1, 2025, we acquired all of the outstanding equity of Red Canary Inc. ("Red Canary"), a managed detection and response technology company, for total cash consideration of $651.4 million. The acquisition is expected to accelerate innovation in Agentic AI-driven security operations.
Pursuant to the purchase agreement, we issued restricted common stock awards with a grant date fair value of $20.2 million, which are subject to future employment service conditions and will be recognized as stock-based compensation expense over the post-combination service period.
We estimated the fair value of the acquired intangible assets using the income approach. The resulting goodwill of $544.5 million is primarily attributable to the assembled workforce and anticipated operational synergies and is not expected to be deductible for income tax purposes.
The purchase price allocation is preliminary and subject to adjustment during the measurement period of up to one year from the acquisition date.
The preliminary allocation of the purchase price consideration consisted of the following:

Amount
Estimated Useful Life
(in thousands)
Assets acquired:
Cash, cash equivalents and other assets$41,584 
Acquired intangible assets:
Customer relationships90,800 7 years
 Developed technology
61,100 5 years
 Trademarks10,600 5 years
Goodwill
544,512 
Total
$748,596 
Liabilities assumed:
Accounts payable, accrued expenses and other liabilities$22,754 
Deferred revenue72,714 
Deferred tax liability1,682 
Total$97,150 
Total purchase price consideration
$651,446 
Pro Forma Financial Information
The pro forma financial information from the above business acquisitions, assuming the acquisition had occurred as of the beginning of the fiscal year prior to the fiscal year of the acquisition, as well as revenue and earnings generated during the period after the acquisition date, were not material for disclosure purposes.