Basic net income (loss) per share is computed by dividing net income (loss) by basic weighted-average shares outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) by diluted weighted-average shares outstanding during the period giving effect to all potentially dilutive securities to the extent they are dilutive. We compute the dilutive effect of shares issuable upon conversion of our convertible senior notes using the if-converted method, and the dilutive effect of warrants related to the issuance of convertible senior notes and equity awards under our employee equity incentive plans using the treasury stock method.

The following table presents the computation of basic and diluted net income (loss) per share of common stock (in millions, except per share data):


	Three Months Ended April 30,				Nine Months Ended April 30,
	2026		2025		2026		2025
Net income (loss)	$	(177)	$	262	$	589	$	880

Weighted-average shares used to compute net income (loss) per share, basic	801		665		729		659
Weighted-average effect of potentially dilutive securities:
Convertible senior notes	—		6		—		9
Warrants related to the issuance of convertible senior notes	—		25		8		25
Employee equity incentive plans	—		11		7		15
Weighted-average shares used to compute net income (loss) per share, diluted	801		707		744		708

Net income (loss) per share, basic	$	(0.22)	$	0.39	$	0.81	$	1.33
Net income (loss) per share, diluted	$	(0.22)	$	0.37	$	0.79	$	1.24

The following securities were excluded from the computation of diluted net income (loss) per share of common stock as their effect would have been antidilutive or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the applicable period (in millions):

Our 2030 Notes and capped calls were also excluded from the calculation of diluted net income (loss) per share as the effect would have been antidilutive.