v3.26.1
Fair Value of Financial Instruments
 9 Months Ended
Apr. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
Available-for-sale investments within cash equivalents and investments consist of the following (in thousands):
April 30, 2026
Amortized CostUnrealized GainsUnrealized LossesEstimated Fair Value
Asset-backed securities$85,115 $59 $(99)$85,075 
Certificates of deposit56,450 — — 56,450 
Commercial paper57,607 — — 57,607 
Corporate bonds468,898 631 (651)468,878 
Foreign government bonds1,820 — — 1,820 
Money market funds162,494 — — 162,494 
U.S. Government agency securities86,182 20 (155)86,047 
U.S. Government bonds97,273 37 (272)97,038 
     Total$1,015,839 $747 $(1,177)$1,015,410 
July 31, 2025
Amortized CostUnrealized GainsUnrealized LossesEstimated Fair Value
Asset-backed securities$69,405 $69 $(17)$69,457 
Certificates of deposit80,970 — — 80,970 
Commercial paper130,628 — — 130,628 
Corporate bonds424,791 545 (138)425,198 
Foreign government bonds1,820 11 — 1,831 
Money market funds488,854 — — 488,854 
U.S. Government agency securities66,184 15 (70)66,129 
U.S. Government bonds64,187 36 (39)64,184 
    Total$1,326,839 $676 $(264)$1,327,251 
The Company does not consider any portion of the unrealized losses at April 30, 2026 to be credit losses. The Company has recorded the securities at fair value in its condensed consolidated balance sheets, with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss). The amount of unrealized gains and losses reclassified into earnings are based on the specific identification of the securities sold. The realized gains and losses from sales of securities are presented in the condensed consolidated statements of comprehensive income (loss).
The following table summarizes the contractual maturities of the Company’s available-for-sale investments measured at fair value (in thousands):
April 30, 2026
Less Than 12 Months12 Months or GreaterTotal
Asset-backed securities$14,715 $70,360 $85,075 
Certificates of deposit56,450 — 56,450 
Commercial paper57,607 — 57,607 
Corporate bonds279,650 189,228 468,878 
Foreign government bonds1,820 — 1,820 
Money market funds162,494 — 162,494 
U.S. Government agency securities7,969 78,078 86,047 
U.S. Government bonds37,437 59,601 97,038 
     Total$618,142 $397,267 $1,015,410 
Fair Value Measurement
Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.
The Company applies the three-level valuation hierarchy when measuring the fair value of certain assets and liabilities:
Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities;
Level 2—Inputs other than quoted prices included within Level 1 that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data; and
Level 3—Unobservable inputs that are supported by little or no market activity, which require the Company to develop its own assumptions.
Available-for-sale investments
The following tables summarize the Company’s available-for-sale investments measured at fair value, by level within the fair value hierarchy (in thousands):
April 30, 2026
Level 1Level 2Level 3Total
Cash equivalents:
Commercial paper$— $749 $— $749 
Money market funds162,494 — — 162,494 
Total cash equivalents162,494 749 — 163,243 
Short-term investments:
Asset-backed securities— 14,715 — 14,715 
Certificates of deposit— 56,450 — 56,450 
Commercial paper— 56,858 — 56,858 
Corporate bonds— 279,650 — 279,650 
Foreign government bonds— 1,820 — 1,820 
U.S. Government agency securities— 7,969 — 7,969 
U.S. Government bonds— 37,437 — 37,437 
Total short-term investments— 454,900 — 454,900 
Long-term investments:
Asset-backed securities— 70,360 — 70,360 
Corporate bonds— 189,228 — 189,228 
U.S. Government agency securities— 78,078 — 78,078 
U.S. Government bonds— 59,601 — 59,601 
Total long-term investments— 397,267 — 397,267 
       Total$162,494 $852,916 $— $1,015,410 
July 31, 2025
Level 1Level 2Level 3Total
Cash equivalents:
Commercial paper$— $53,102 $— $53,102 
Money market funds488,854 — — 488,854 
Total cash equivalents488,854 53,102 — 541,956 
Short-term investments:
Asset-backed securities— 11,393 — 11,393 
Certificates of deposit— 80,970 — 80,970 
Commercial paper— 77,526 — 77,526 
Corporate bonds— 220,890 — 220,890 
Foreign government bonds— 1,831 — 1,831 
U.S. Government agency securities— 13,188 — 13,188 
U.S. Government bonds— 45,743 — 45,743 
Total short-term investments— 451,541 — 451,541 
Long-term investments:
Asset-backed securities— 58,064 — 58,064 
Corporate bonds— 204,308 — 204,308 
U.S. Government agency securities— 52,941 — 52,941 
U.S. Government bonds— 18,441 — 18,441 
Total long-term investments— 333,754 — 333,754 
      Total$488,854 $838,397 $— $1,327,251 
Convertible Senior Notes
In March 2018, the Company issued $400.0 million aggregate principal amount of 1.25% Convertible Senior Notes due 2025 (the “2025 Convertible Senior Notes”) and, in October 2024, the Company issued $690.0 million aggregate principal amount of 1.25% Convertible Senior Notes due 2029 (the “2029 Convertible Senior Notes,” together with the 2025 Convertible Senior Notes, the “Convertible Senior Notes”). The 2025 Convertible Senior Notes were fully settled prior to July 31, 2025.
The fair value of the 2029 Convertible Senior Notes was $682.4 million and $795.0 million at April 30, 2026 and July 31, 2025, respectively. The Company estimates the fair value of the 2029 Convertible Senior Notes using commonly accepted valuation methodologies and market-based risk measurements that are directly observable, such as unadjusted quoted prices in markets that are not active (Level 2).
Strategic Investments
The Company’s other assets include strategic investments in privately held companies in which the Company does not have a controlling interest or the ability to exert significant influence. The strategic investments consist of non-marketable equity securities that do not have readily determinable market values (Level 3), which are recorded using the measurement alternative of cost less impairment and adjusts cost for subsequent observable changes in fair value, and an investment in a limited partnership, which is recorded using the net asset value practical expedient (Level 3) in accordance with ASC 820. Changes in fair value are recorded in other income (expense) on the condensed consolidated statements of operations.
The following table summarizes the unrealized and realized gains (losses) on strategic investments (in thousands):
Three Months EndedNine Months Ended
April 30,April 30,
2026202520262025
Unrealized gains (losses), net, recognized on privately held equity securities measured using net asset value
$(13)$(103)$(58)$(341)
Unrealized gains (losses) recognized on strategic investments using the measurement alternative611 — 611 — 
Unrealized gains (losses), net
599 (103)554 (341)
Realized gains (losses), net on sales of strategic investments
632 — 632 3,671 
Gains (losses) on strategic investments, net$1,231 $(103)$1,186 $3,330 
The following table summarizes the carrying amount of the Company’s strategic investments (in thousands):
April 30, 2026July 31, 2025
Equity investments using the measurement alternative
$33,315 $18,263 
Equity investment using net asset value
$1,724 $1,781