Stock-based compensation expense related to stock options, Stock Awards, and ESPP purchase rights is included in the Company’s condensed consolidated statements of operations as follows (in thousands):


	Three Months Ended				Nine Months Ended
	April 30,				April 30,
	2026		2025		2026		2025
Stock-based compensation expense	$	45,179	$	40,367	$	135,479	$	119,398
Net impact of deferred stock-based compensation	(237)		(10)		(463)		(33)
Total stock-based compensation expense, net	$	44,941	$	40,357	$	135,015	$	119,365
Stock-based compensation expense is included in the following categories:
Cost of subscription and support revenue	$	3,391	$	3,598	$	10,437	$	10,511
Cost of license revenue	—		32		—		104
Cost of services revenue	6,108		5,055		18,203		15,218
Research and development	12,061		10,267		36,277		30,560
Sales and marketing	11,598		10,832		35,014		31,400
General and administrative	11,784		10,573		35,085		31,572
Total stock-based compensation expense	$	44,941	$	40,357	$	135,015	$	119,365


	Unrecognized Expense (in thousands)		Weighted Average Expected Recognition Period (in years)

Stock Awards	$	336,815	2.1
ESPP purchase rights	1,578		0.2
Total unrecognized stock-based compensation expense	$	338,393


	Stock Awards Outstanding
	Number of Stock Awards	Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value (in thousands)(1)
Balance as of July 31, 2025	2,672,857	$	117.25	$	604,654
Granted	903,084	$	229.42
Released	(1,068,724)	$	107.90	$	228,679
Canceled	(160,949)	$	135.22
Balance as of April 30, 2026	2,346,268	$	163.45	$	324,700
Expected to vest as of April 30, 2026	2,346,268	$	163.45	$	324,700

(1) Aggregate intrinsic value at each period end represents the total market value of Stock Awards at the Company’s closing stock price of $138.39 and $226.22 on April 30, 2026 and July 31, 2025, respectively. Aggregate intrinsic value for released Stock Awards represents the total market value of released Stock Awards at date of release.

Certain executive officers have been granted Stock Awards that cliff vest after three years, subject to continued service until such time, with the opportunity to increase the number of vested awards based on Company financial performance and, for a select number of awards, the market performance of the Company’s common stock. The fair value of the awards will be recognized over the three-year performance period and may increase or decrease depending on the estimated attainment of the Company’s financial performance criteria. The Company determined the fair value of the awards subject to market performance of the Company’s common stock using a Monte Carlo simulation model, which included the following assumptions:

For the portion of the award subject to the market performance of the Company’s common stock, stock-based compensation expense is recognized over the requisite service period regardless of whether or not the market condition is ultimately satisfied, subject to continued service over the period.

The Company recognized stock-based compensation related to PSUs of $9.2 million and $7.1 million during the three months ended April 30, 2026 and 2025, respectively, and $25.7 million and $19.2 million during the nine months ended April 30, 2026 and 2025, respectively.



	Number of Stock Options Outstanding	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value(1)
				(in years)	(in thousands)
Balance as of July 31, 2025	109,958	$	64.09	6.8	$	17,828
Granted	—	$	—
Exercised	(9,721)	$	55.47		$	1,661
Canceled	—	$	—
Balance as of April 30, 2026	100,237	$	64.92	6.1	$	7,364
Vested and expected to vest as of April 30, 2026	100,237	$	64.92	6.1	$	7,364
Exercisable as of April 30, 2026	100,237	$	64.92	6.1	$	7,364

(1) Aggregate intrinsic value at each period end represents the difference between the Company’s closing stock price of $138.39 and $226.22 on April 30, 2026 and July 31, 2025, respectively, and the exercise price of outstanding options. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price.

In September 2022, the Company’s board of directors authorized and approved a share repurchase program of up to $400.0 million of the Company’s outstanding common stock. The Company began repurchasing shares under this program during the first quarter of fiscal year 2023 and completed the program in December 2025.

In January 2026, the Company’s board of directors authorized and approved a new share repurchase program of up to $500.0 million of the Company’s outstanding common stock. Share repurchases under this program may be made from time to time, in the open market, in privately negotiated transactions and otherwise, at the discretion of management of the Company and in accordance with applicable federal securities laws, including Rule 10b-18 of the Exchange Act, and other applicable legal requirements. Such repurchases may also be made in compliance with Rule 10b5-1 trading plans entered into by the Company.

During the three and nine months ended April 30, 2026, the Company repurchased 1,696,180 and 2,437,175 shares of common stock, respectively, at an average price of $147.07 and $163.16, respectively.

The Inflation Reduction Act of 2022 imposed an excise tax of 1% on share repurchases in excess of new issuances in the fiscal year. During the three and nine months ended April 30, 2026, the Company recorded total excise tax of $1.5 million, which has been included within retained earnings (accumulated deficit), as part of the cost basis of the common stock repurchased, and other current liabilities in the condensed consolidated balance sheets as of April 30, 2026.