v3.26.1
Derivative Instruments
 9 Months Ended
Apr. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
Foreign Currency Forward Contracts
We use foreign currency forward contracts to manage risks related to fluctuations in exchange rates. We designate certain of these instruments as cash flow hedges to mitigate the impact of currency fluctuations on forecasted operating expenses, typically with maturities of up to 21 months.
We also utilize non-designated forward contracts to manage exposure from the remeasurement of monetary assets and liabilities, typically with maturities of one to four months. Changes in the fair value of these non-designated derivatives are recorded in other income (expense), net and were not material for the periods presented.
As of April 30, 2026 and July 31, 2025, the total notional amount of our outstanding designated foreign currency forward contracts was $793.0 million and $693.1 million, respectively, and for our outstanding non-designated foreign currency forward contracts was $494.3 million and $549.5 million, respectively. As of April 30, 2026, the unrealized loss related to our cash flow hedges expected to be released into earnings over the next 12 months is not expected to be material. Refer to Note 4, Fair Value Measurements, for the fair value of our derivative instruments as reported on the condensed consolidated balance sheet as of April 30, 2026 and July 31, 2025.
The changes in accumulated other comprehensive income (losses) ("AOCI(L)") related to our cash flow hedges consisted of the following:
Three Months Ended April 30,Nine Months Ended April 30,
2026202520262025
(in thousands)
Balance of AOCI(L) as of the beginning of the period$9,758 $(22,783)$7,338 $(4,224)
Net unrealized gains (losses) recognized in accumulated other comprehensive income (11,596)33,093 (4,807)12,588 
(Gains) losses reclassified from AOCI(L) into the condensed consolidated statement of operations (1)
(280)2,982 (4,649)4,928 
Balance of AOCI(L) as of the end of the period $(2,118)$13,292 $(2,118)$13,292 

(1) (Gains) losses related to our cash flow hedges reclassified from AOCI(L) into the condensed consolidated statement of operations consisted of the following:
Three Months Ended April 30,Nine Months Ended April 30,
2026202520262025
(in thousands)
Cost of revenue$242 $547 $(259)$783 
Sales and marketing
(377)1,869 (3,098)3,426 
Research and development
(211)472 (1,228)658 
General and administrative
66 94 (64)61 
Total
$(280)$2,982 $(4,649)$4,928 
Our derivative contracts expose us to credit risk to the extent that the counterparties may be unable to meet the terms of the underlying contracts. We mitigate this credit risk by transacting with major financial institutions with high credit ratings and standards. We periodically assess the creditworthiness of our counterparties to ensure they continue to meet our credit
quality requirements. We also enter into master netting arrangements, which permit net settlement of transactions with the same counterparty. The potential impact of these rights of set-off associated with our derivative instruments was not material as of April 30, 2026 and July 31, 2025. We are not required to pledge, and are not entitled to receive, cash collateral related to these derivative instruments. We do not enter into derivative contracts for trading or speculative purposes.
Interest Rate Swap Contracts
During the three months ended October 31, 2025, we entered into interest rate swap contracts covering the interest rate applicable to a portion of the outstanding 2028 Notes (as defined below), maturing on July 15, 2028, and designated as fair value hedges. The interest rate swap contracts are intended to hedge a portion of our fair value risk exposure related to changing interest rates by effectively converting the fixed interest rate of a portion of our 2028 Notes to a floating interest rate. The interest rate swap contracts related to the 2025 Notes (as defined below) matured on July 1, 2025. As of April 30, 2026, the carrying amount of the hedged 2028 Notes was $746.9 million and the total notional amount of outstanding interest rate swaps was $750.0 million.
The gains and losses related to changes in the fair value of the interest rate swap contracts are included within interest expense in the condensed consolidated statement of operations. As of April 30, 2026, the cumulative amount of fair value hedge accounting adjustments included in the carrying amount of the convertible senior notes was $7.2 million.    
The gains and losses effect of derivative instruments designated as fair value hedges included within interest expense in the condensed statement of operations consisted of the following:
Three Months Ended April 30,Nine Months Ended April 30,
2026202520262025
(in thousands)
Gains (losses) on interest rate swaps:
Hedge accounting fair value adjustments$5,125 $(384)$7,212 $(3,659)
Derivatives designated as hedging instruments
(4,930)387 (6,979)3,462 
Total
$195 $3 $233 $(197)