The 2015 Equity Incentive Plan (the 2015 Plan) provides for grants of incentive stock options to our employees and non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance-based stock and cash awards, market-based stock awards, and other forms of stock awards to our employees, directors and consultants. Our equity awards generally vest over a two to four year period and expire no later than ten years from the date of grant.

Upon vesting of equity awards, 1.2 million and 1.6 million shares were withheld during the first quarter of fiscal 2026 and 2027 to cover $60.1 million and $101.0 million in tax withholding obligations. The shares withheld to satisfy employee tax withholding obligations are returned to our 2015 Plan and will be available for future issuance. Payments for employees’ tax obligations to the tax authorities are recognized as a reduction to additional paid-in capital and reflected as a financing activity in our condensed consolidated statements of cash flows.

Under our Amended and Restated 2015 Employee Stock Purchase Plan (2015 ESPP), our Board of Directors (or a committee thereof) has the authority to establish the length and terms of the offering periods and purchase periods and the purchase price of the shares of common stock which may be purchased under the plan. The current offering terms allow eligible employees to purchase shares of our common stock at a discount through payroll deductions of up to 30% of their eligible compensation, subject to a cap of 3,000 shares on any purchase date, a dollar cap of $7,500 per purchase period, or $25,000 in any calendar year (as determined under applicable tax rules). The current terms also allow for a 24-month offering period beginning March 16th and September 16th of each year, with each offering period consisting of four 6-month purchase periods, subject to a reset provision. Further, currently, on each purchase date, eligible employees may purchase our common stock at a price per share equal to 85% of the lesser of the fair market value of our common stock (1) on the first trading day of the applicable offering period or (2) the purchase date.

Under the reset provision currently authorized, if the closing stock price on the offering date of a new offering falls below the closing stock price on the offering date of an ongoing offering, the ongoing offering would terminate immediately following the purchase of ESPP shares on the purchase date immediately preceding the new offering and participants in the terminated offering would automatically be enrolled in the new offering (ESPP reset), resulting in a modification charge to be recognized over the new offering period. No ESPP reset occurred during the first quarter of fiscal 2026. During the first quarter of fiscal 2027, ESPP reset resulted in total modification charge of $6.0 million, which will be recognized over its new offering period.

Stock-based compensation expense related to our 2015 ESPP was $7.5 million and $8.0 million during the first quarter of fiscal 2026 and 2027. At the end of the first quarter of fiscal 2027, total unrecognized stock-based compensation cost related to our 2015 ESPP was $37.5 million, which is expected to be recognized over a weighted-average period of 1.3 years.


	Options Outstanding
	Number of Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value (in thousands)
Balance at the end of fiscal 2026	1,142,394	$	13.80	1.7	$	64,144
Options exercised	(562,224)	11.82
Balance at the end of the first quarter of fiscal 2027	580,170	$	15.71	1.6	$	32,438
Vested and exercisable at the end of the first quarter of fiscal 2027	580,170	$	15.71	1.6	$	32,438

The aggregate intrinsic value of options vested and exercisable at the end of the first quarter of fiscal 2027 is calculated based on the difference between the exercise price and the closing price of $71.62 of our common stock on the last day of the first quarter of fiscal 2027.

A summary of the RSU activity under our 2015 Plan and related information is as follows:


	Number of RSUs Outstanding	Weighted- Average Grant Date Fair Value		Aggregate Intrinsic Value (in thousands)
Unvested balance at the end of fiscal 2026	17,340,284	$	44.32	$	1,205,843
Granted	6,964,181	67.42
Vested	(2,231,678)	36.89
Forfeited or canceled (1)	(428,350)	46.18
Unvested balance at the end of the first quarter of fiscal 2027	21,644,437	$	52.48	$	1,550,175

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Stock-based compensation expense related to RSUs was $77.2 million and $85.6 million during the first quarter of fiscal 2026 and 2027. At the end of the first quarter of fiscal 2027, total unrecognized stock-based compensation cost related to unvested RSUs was $1.1 billion, which is expected to be recognized over a weighted-average period of 3.1 years.

The number of shares that could be earned under our PRSU grants ranges from 0% to 200% of the target number granted depending on the achievement of certain performance conditions with any unearned shares canceled. Generally, the number of earned shares vest over three years from the date of grant subject to continuous service.


	Number of PRSUs Outstanding	Weighted- Average Grant Date Fair Value		Aggregate Intrinsic Value (in thousands)
Unvested balance at the end of fiscal 2026	1,936,107	$	52.33	$	134,637
Granted	1,244,446	55.43
Vested and earned (1)	(1,068,712)	51.90

Forfeited (2)	(40,825)	51.01
Unvested balance at the end of the first quarter of fiscal 2027	2,071,016	$	54.44	$	148,326

Stock-based compensation expense related to PRSUs was $8.0 million and $24.7 million during the first quarter of fiscal 2026 and 2027. At the end of the first quarter of fiscal 2027, total unrecognized stock-based compensation cost related to unvested PRSUs was $47.3 million, which is expected to be recognized over a weighted-average period of 1.9 years.

In fiscal 2024 and 2026, we granted 4.2 million and 1.2 million market-based LTP Awards, respectively, contingent on achieving specified market capitalization thresholds measured over approximately three- to five-year periods. Awards granted in fiscal 2024 are measured at the end of fiscal years 2026 through 2028 and vest on March 20, 2028, while awards granted in fiscal 2026 are measured at the end of fiscal years 2028 through 2030 and vest on March 20, 2030, in each case subject to continued service and a one-year post-vest holding period.

The stock-based compensation expense for these awards is being recognized over the respective requisite service periods of nearly five years using the accelerated attribution method and is not reversed if the market condition is not ultimately met.


	Number of LTP Awards Outstanding	Weighted- Average Grant Date Fair Value		Aggregate Intrinsic Value (in thousands)
Unvested balance at the end of fiscal 2026	4,881,686	$	20.11	$	339,472


Forfeited (1)	(125,221)	19.97

Unvested balance at the end of the first quarter of fiscal 2027	4,756,465	$	20.11	$	340,658

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Stock-based compensation expense related to LTP Awards was $3.6 million and $3.8 million during the first quarter of fiscal 2026 and 2027. At the end of the first quarter of fiscal 2027, total unrecognized stock-based compensation cost related to unvested LTP Awards was $49.6 million, which is expected to be recognized over a weighted-average period of 3.0 years.


	First Quarter of Fiscal
	2026		2027
Cost of revenue—product	$	3,266	$	4,132
Cost of revenue—subscription services	7,162		8,155
Research and development	49,242		60,331
Sales and marketing	22,084		29,163
General and administrative	14,521		20,283
Total stock-based compensation expense, net of amounts capitalized (1)	$	96,275	$	122,064