The following table summarizes the RSU and PSU activity under our stock plans during the nine months ended April 30, 2026 (in millions, except per share amounts):


	Unvested RSUs			Unvested PSUs
	Number of Shares	Weighted-Average Grant-Date Fair Value Per Share		Aggregate Intrinsic Value		Number of Shares	Weighted-Average Grant-Date Fair Value Per Share		Aggregate Intrinsic Value
Balance—July 31, 2025	13	$	143.33	$	2,285	9	$	140.92	$	1,635
Granted(1)(2)	14	$	178.55			4	$	186.49
Vested(3)	(6)	$	140.04			(3)	$	150.47
Forfeited	(2)	$	153.49			(2)	$	142.73
Balance—April 30, 2026	19	$	169.21	$	3,450	8	$	156.51	$	1,461

(1)For PSUs, shares granted represent the aggregate maximum number of shares that may be earned and issued with respect to these awards over their full terms.

(2)Includes 7 million RSUs assumed in connection with the acquisitions of Chronosphere, CyberArk, and Koi, with weighted-average grant-date fair value of $176.20, $165.30, and $161.59 per share, respectively, for the nine months ended April 30, 2026.

Our RSUs generally vest over a period of four years from the date of grant. Until vested, RSUs do not have the voting and dividend participation rights of common stock and the shares underlying the awards are not considered issued and outstanding.

Our PSUs generally vest over a period of one to four years from the date of grant. The number of PSUs eligible to vest is determined based on the level of achievement against certain performance conditions, market conditions, and a combination thereof.

During the nine months ended April 30, 2026, we granted 3 million shares of PSUs that contain service, performance, and market conditions. The service conditions are satisfied after a period of one to three years. The performance conditions are based on an average of next-generation security annualized recurring revenue and non-GAAP net income per diluted share, subject to certain adjustments. The market condition is measured based on our total shareholder return (“TSR”) relative to the TSR of the companies listed in the Standard & Poor’s 500 index. As of April 30, 2026, we have approved 3 million shares of PSUs, which will be granted upon the performance condition being established during the next two fiscal years.

The fair value of the PSUs subject to market conditions is estimated on the grant date using a Monte Carlo simulation model. The following table summarizes the assumptions used and the resulting grant-date fair value of our PSUs subject to market conditions granted during the nine months ended April 30, 2026 and 2025:



	Nine Months Ended April 30,
		2026		2025
Volatility		36.6% - 42.6%		43.5% - 47.6%
Expected term (in years)		1.0 - 3.0		1.0 - 2.9
Dividend yield		0.0	%	0.0	%
Risk-free interest rate		3.6% - 3.9%		3.7% - 4.5%
Grant-date fair value per share		$226.06 - $261.62		$264.51 - $305.83

We have granted PSOs with both service and market conditions. The market conditions were achieved when certain stock price targets were met. As of April 30, 2026 and July 31, 2025, all of our outstanding PSOs have been fully vested. The maximum contractual term of our outstanding PSOs is seven and a half years from the date of grant in fiscal year 2018 and 2019.

The following table summarizes the PSO activity under our stock plans during the nine months ended April 30, 2026 (in millions, except per share amounts):



	Number of Shares	Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Balance—July 31, 2025	1	$	32.76	0.5	$	197

Exercised	(1)	$	32.76

Balance—April 30, 2026	—	$	—	0.0	$	—
Exercisable—April 30, 2026	—	$	—	0.0	$	—


	Three Months Ended April 30,				Nine Months Ended April 30,
	2026		2025		2026		2025
Cost of product revenue	$	2	$	1	$	4	$	4
Cost of subscription and support revenue	50		32		114		95
Research and development	206		134		477		411
Sales and marketing	188		92		388		258
General and administrative	238		67		372		173
Total share-based compensation	$	684	$	326	$	1,355	$	941

During the three and nine months ended April 30, 2026, the vesting of certain equity awards was accelerated in connection with our acquisitions of CyberArk and Koi; as a result, we recorded share-based compensation of $177 million, including $1 million in cost of subscription and support revenue, $36 million in sales and marketing expense, and $140 million in general and administrative expense on our condensed consolidated statements of operations.

As of April 30, 2026, total compensation cost related to unvested share-based awards not yet recognized was $3.6 billion. This cost is expected to be amortized over a weighted-average period of approximately 2.6 years.