Basic net income per share is computed by dividing net income by basic weighted-average shares outstanding during the period. Diluted net income per share is computed by dividing net income by diluted weighted-average shares outstanding during the period giving effect to all potentially dilutive securities to the extent they are dilutive. We compute the dilutive effect of shares issuable upon conversion of our convertible senior notes using the if-converted method, and the dilutive effect of warrants related to the issuance of convertible senior notes and equity awards under our employee equity incentive plans using the treasury stock method.

The following table presents the computation of basic and diluted net income per share of common stock (in millions, except per share data):


	Year Ended July 31,
	2026		2025		2024
Net income	$	307	$	1,134	$	2,578
Weighted-average shares used to compute net income per share, basic	749		663		638
Weighted-average effect of potentially dilutive securities:
Convertible senior notes	—		7		21
Warrants related to the issuance of convertible senior notes	5		25		26
Employee equity incentive plans	10		14		23
Weighted-average shares used to compute net income per share, diluted	764		709		708
Net income per share, basic	$	0.41	$	1.71	$	4.04
Net income per share, diluted	$	0.40	$	1.60	$	3.64

The following securities were excluded from the computation of diluted net income per share of common stock as their effect would have been antidilutive or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the applicable period (in millions):