NOTE 10 – STOCK-BASED COMPENSATION

Stock-based compensation expense amounts for the three and six months ended July 31, 2026 were $2.4 million and $4.5 million respectively, and they were $2.3 million and $3.5 million for the three and six months ended July 31, 2025, respectively. As of July 31, 2026, there was $17.1 million in unrecognized compensation costs related to outstanding stock awards that the Company expects to recognize over the next three years.

During the six months ended July 31, 2026, the Company awarded performance-based restricted stock units covering a target of 596 shares of common stock, earnings per share performance-based restricted stock units covering a target of 12,583 shares of common stock, and time-based restricted stock units covering 12,024 shares of common stock. The number of shares of common stock to be issued under certain awards may exceed the number of target shares if certain performance goals are exceeded. The changes in the maximum number of shares of common stock issuable pursuant to outstanding restricted stock units for the six months ended July 31, 2026 are presented below (shares in thousands):

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During the six months ended July 31, 2026, the Company awarded nonqualified stock options to purchase 955 shares of common stock at a weighted-average exercise price per share of $588.28. During the six months ended July 31, 2026, nonqualified stock options to purchase 57,401 shares of common stock were exercised at a weighted-average exercise price per share of $43.02. As of July 31, 2026, there were 21,621 nonqualified stock options outstanding.

Shares Withheld and Treasury Stock

For the six months ended July 31, 2026 and 2025, the Company used 98,920 shares and 233,478 shares of treasury stock, respectively, to settle stock option exercises and other share-based awards. For the six months ended July 31, 2026, the Company withheld 48,924 shares of common stock at the average price per share of $623.99 for the exercise price and/or tax withholding in connection with stock option exercises and other share-based award settlements. For the six months ended July 31, 2025, the Company withheld 95,977 shares of common stock at the average price per share of $194.00 for the exercise price and/or tax withholding in connection with stock option exercises and other share-based award settlements.