v3.26.1
Stockholders' Equity (Tables)
 12 Months Ended
Jul. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Total share-based compensation expense
The following table summarizes the total share-based compensation expense that we recorded in operating income for the periods shown.
Twelve Months Ended July 31,
(In millions)202620252024
Cost of service revenue
$370 $420 $398 
Cost of product and other revenue
1 3 4 
Selling and marketing587 541 506 
Research and development706 629 639 
General and administrative392 375 368 
Restructuring
— — 25 
Total share-based compensation expense 2,056 1,968 1,940 
Income tax benefit(366)(548)(594)
Decrease in net income$1,690 $1,420 $1,346 
Assumptions to estimate the fair value of stock options granted and shares purchased under Employee Stock Purchase Plan
We used the following assumptions to estimate the fair value of stock options granted and shares purchased under our Employee Stock Purchase Plan for the periods indicated:
Twelve Months Ended July 31,
202620252024
Assumptions for stock options:
Expected volatility58.64 %29.54 %
  31%
Weighted-average expected volatility58.64 %29.54 %31 %
Risk-free interest rate4.41 %3.95 %
 4.13%
Expected dividend yield1.70 %0.53 %0.57 %
Assumptions for ESPP:
Expected volatility (range)
30% - 47%
30% - 31%
27% - 36%
Weighted-average expected volatility38 %30 %31 %
Risk-free interest rate (range)
3.69% - 4.24%
4.29% - 5.39%
4.94% - 5.55%
Expected dividend yield (range)
0.64% - 1.06%
0.56% - 0.69%
0.57% - 0.75%
Share-based awards available for grant
A summary of share-based awards available for grant under our plans for the fiscal periods indicated was as follows:
(Shares in thousands)Shares
Available
for Grant
Balance at July 31, 202319,026 
Additional shares authorized12,200 
Restricted stock units granted (1)
(9,782)
Options granted(326)
Share-based awards canceled/forfeited/expired (1)(2)
6,199 
Balance at July 31, 202427,317 
Restricted stock units granted (1)
(8,812)
Options granted(287)
Share-based awards canceled/forfeited/expired (1)(2)
6,929 
Balance at July 31, 202525,147 
Restricted stock units granted (1)
(21,070)
Options granted(69)
Share-based awards canceled/forfeited/expired (1)(2)
7,272 
Balance at July 31, 202611,280 
(1)RSUs granted from the pool of shares available for grant under our Restated 2005 Plan reduce the pool by 2.3 shares for each share granted. RSUs forfeited and returned to the pool of shares available for grant under the Restated 2005 Plan increase the pool by 2.3 shares for each share forfeited.
(2)Stock options and RSUs canceled, expired, or forfeited under our Restated 2005 Plan are returned to the pool of shares available for grant. Under the Restated 2005 Plan, shares withheld for income taxes upon vesting of RSUs that were granted on or after July 21, 2016 are also returned to the pool of shares available for grant.
Summary of restricted stock unit activity
A summary of RSU and restricted stock activity for the periods indicated was as follows:
(Shares in thousands)Number
of Shares
Weighted-Average
Grant Date
Fair Value
Unvested at July 31, 202311,894 $433.70 
Granted
4,253 590.59 
Vested(4,233)439.08 
Forfeited(990)390.17 
Unvested at July 31, 202410,924 496.64 
Granted
3,831 696.82 
Vested(3,674)512.36 
Forfeited(1,508)456.60 
Unvested at July 31, 20259,573 577.03 
Granted9,161 291.74 
Vested(3,598)561.86 
Forfeited(1,677)542.33 
Unvested at July 31, 202613,459 $391.22 
Additional information regarding RSUs
Additional information regarding our RSUs is shown in the table below.
Twelve Months Ended July 31,
(In millions)202620252024
Total fair market value of shares vested$1,767 $2,434 $2,575 
Share-based compensation for RSUs$1,958 $1,882 $1,857 
Total tax benefit related to RSU share-based compensation expense$360 $524 $545 
Cash tax benefits realized for tax deductions for RSUs$378 $533 $526 
Stock option activity
A summary of stock option activity for the periods indicated was as follows:
Options Outstanding
(Shares in thousands)Number of
Shares
Weighted-Average
Exercise Price
Per Share
Balance at July 31, 20232,130 $360.17 
Granted326 626.32 
Exercised(570)212.89 
Canceled or expired(114)467.16 
Balance at July 31, 20241,772 449.66 
Granted287 781.21 
Exercised(660)354.70 
Canceled or expired(80)493.70 
Balance at July 31, 20251,319 566.59 
Granted69 281.53 
Exercised(30)478.86 
Canceled or expired(118)601.89 
Balance at July 31, 20261,240 $549.37 
Stock options outstanding
Information regarding stock options outstanding as of July 31, 2026 is summarized below:
Number
of Shares
(in thousands)		Weighted-
Average
Remaining
Contractual
Life
(in years)		Weighted-
Average
Exercise
Price per
Share		Aggregate
Intrinsic
Value
(in millions)
Options outstanding1,240 3.86$549.37 $4 
Options exercisable793 2.89$508.10 $1 
Additional information regarding stock options and ESPP shares
Additional information regarding our stock options and ESPP shares is shown in the table below.
Twelve Months Ended July 31,
(In millions, except per share amounts)
202620252024
Weighted-average fair value of options granted (per share)$124.58 $246.17 $188.54 
Total grant date fair value of options vested$48 $43 $38 
Aggregate intrinsic value of options exercised$5 $208 $209 
Share-based compensation expense for stock options and ESPP$98 $86 $83 
Total tax benefit for stock option and ESPP share-based compensation$6 $24 $49 
Cash received from option exercises$14 $234 $121 
Cash tax benefits realized related to tax deductions for non-qualified option exercises and disqualifying dispositions under all share-based payment arrangements$2 $27 $49 
Components of accumulated other comprehensive loss, net of income taxes
The following table shows the components of accumulated other comprehensive loss, net of income taxes, in the stockholders’ equity section of our consolidated balance sheets at the dates indicated.
July 31,
(In millions)20262025
Foreign currency translation adjustments$(50)$(51)
Unrealized gain (loss) on available-for-sale debt securities(1)1 
Other(6)— 
Total accumulated other comprehensive loss$(57)$(50)