v3.26.1
Stock-Based Compensation Expense and Shareholders' Equity
 12 Months Ended
Jul. 31, 2026
Stockholders' Equity and Stock-based Compensation [Abstract]  
Stock-Based Compensation Expense and Shareholders' Equity Stock-Based Compensation Expense and Shareholders’ Equity
Stock-Based Compensation Expense
Stock-based compensation expense related to stock options, Stock Awards, and the ESPP purchase rights is included in the consolidated statements of operations as follows (in thousands):
Fiscal years ended July 31,
202620252024
Stock-based compensation expense$182,583 $161,678 $146,700 
Net impact of deferred stock-based compensation(784)(122)(240)
Total stock-based compensation expense$181,799 $161,556 $146,460 
Stock-based compensation expense is included in the following categories:
Cost of subscription and support revenue$13,814 $13,953 $13,425 
Cost of license revenue— 136 186 
Cost of services revenue24,583 20,759 19,013 
Research and development49,061 41,760 40,213 
Sales and marketing46,720 43,270 34,590 
General and administrative47,622 41,678 39,033 
Total stock-based compensation expense181,799 161,556 146,460 
Tax benefit from stock-based compensation53,777 62,429 37,670 
Total stock-based compensation, net of tax effect$128,023 $99,127 $108,790 
Total unrecognized stock-based compensation expense related to the Company’s stock options, Stock Awards, and ESPP purchase rights as of July 31, 2026 is as follows:
Unrecognized Expense
(in thousands)		Weighted Average Expected Recognition Period
(in years)
Stock awards$303,141 1.9
ESPP purchase rights4,727 0.4
Total unrecognized stock-based compensation expense$307,868 
Stock Awards
A summary of the Company’s Stock Awards activity under the Company’s equity incentive plans is as follows:
Stock Awards Outstanding
Number of Stock AwardsWeighted Average Grant Date Fair Value
 Aggregate Intrinsic Value(1)
(in thousands)
Balance as of July 31, 20233,414,706 $85.68 $289,635 
Granted1,639,400 $93.63 
Released(1,569,451)$91.48 $168,144 
Canceled(282,589)$89.22 
Balance as of July 31, 20243,202,066 $86.60 $480,534 
Granted1,099,795 $179.92 
Released(1,473,839)$99.72 $284,544 
Canceled(155,165)$95.42 
Balance as of July 31, 20252,672,857 $117.25 $604,654 
Granted985,948 $220.10 
Released(1,333,619)$110.89 $261,148 
Canceled(178,997)$138.90 
Balance as of July 31, 20262,146,189 $166.64 $326,092 
Expected to vest as of July 31, 20262,146,189 $166.64 $326,092 
(1)Aggregate intrinsic value at each period end represents the total market value of Stock Awards at the Company’s closing stock price of $151.94, $226.22, and $150.07 on July 31, 2026, 2025, and 2024, respectively. Aggregate intrinsic value for released Stock Awards represents the total market value of released Stock Awards at date of release.
In September of each year presented, certain executive officers were 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 issued in September 2023 and September 2024, 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 Company financial performance criteria. The Company determined the fair value of the portion of the awards subject to the market performance of the Company’s common stock using a Monte Carlo simulation model, which included the following assumptions:

Fiscal years ended July 31,
202620252024
Performance period
*September 11, 2024 to September 11, 2027September 13, 2023 to September 13, 2026
3-year historical volatility
*36.0%35.0%
3-year risk free rate
*3.4%4.5%
*No stock awards with the opportunity to increase the number of vested awards based on the market performance of the Company’s common stock were granted during the fiscal year ended July 31, 2026.
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 $36.0 million, $26.2 million, and $16.2 million during the fiscal years ended July 31, 2026, 2025, and 2024, respectively.
Stock Options
A summary of stock option activity under the Company’s equity incentive plans is as follows:
 Number of Stock Options Outstanding Weighted Average Exercise PriceWeighted Average Remaining Contractual Life
(in years)
 Aggregate Intrinsic Value(1)
(in thousands)
Balance as of July 31, 2023187,572 $65.90 8.8$3,549 
Granted— $— 
Exercised(15,517)$67.98 $1,061 
Canceled(5,217)$68.39 
Balance as of July 31, 2024166,838 $65.63 7.9$14,088 
Granted— $— 
Exercised(56,880)$68.60 $6,982 
Canceled— $— 
Balance as of July 31, 2025109,958 $64.09 6.8$17,828 
Granted— $— 
Exercised(13,385)$54.47 $1,926 
Canceled— $— 
Balance as of July 31, 202696,573 $65.42 5.9$8,355 
Vested and expected to vest as of July 31, 202696,573 $65.42 5.9$8,355 
Exercisable as of July 31, 202696,573 $65.42 5.9$8,355 
(1)Aggregate intrinsic value at each fiscal year end represents the difference between the Company’s closing stock price of $151.94, $226.22, and $150.07 on July 31, 2026, 2025, and 2024, respectively, and the exercise price of outstanding stock options. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price.
Employee Stock Purchase Plan
In December 2024, the Company’s stockholders approved the 2024 ESPP at the Company’s annual meeting of stockholders, with an initial pool of 3,000,000 shares of the Company’s common stock that may be issued under the ESPP. The ESPP generally provides for six-month offering periods beginning on January 6 and July 6 of each calendar year where each offering period has one purchase period. The Company’s first ESPP offering period began on July 6, 2025. Eligible employees may authorize payroll deductions between 1% and 15% of their base salary compensation to purchase shares of common stock at 85% of the lower of the market price on the date of commencement of the applicable offering period or on the last day of each six month purchase period. The ESPP does not allow eligible employees to increase their contributions during any offering period.
The Company estimated the fair value of the ESPP purchase rights using the Black-Scholes option pricing model with the following assumptions:
Fiscal year ended July 31,
202620252024
Expected term (in years)0.50.5
*
Risk-free interest rate
3.6% - 4.0%
4.3%*
Expected volatility
37.1% - 65.0%
42.1%*
Expected dividend yield—%—%*
*The ESPP was approved by stockholders in December 2024. Therefore, there were no ESPP purchase rights during the fiscal year ended July 31, 2024.
The Company issued 200,395 shares of common stock under the ESPP during the fiscal year ended July 31, 2026, and no shares of common stock under the ESPP during the fiscal years ended July 31, 2025 and 2024. The weighted-average grant date fair value related to rights to acquire shares of common stock under the ESPP during the fiscal years ended July 31, 2026 and 2025, was $47.45 and $63.29 per share, respectively. The Company recognized stock-based compensation related to the ESPP of $9.0 million and $0.6 million during the fiscal years ended July 31, 2026 and 2025, respectively. During the fiscal year ended July 31, 2024, no ESPP expense was recognized.
Common Stock Reserved for Issuance
As of July 31, 2026 and 2025, the Company was authorized to issue 500,000,000 shares of common stock with a par value of $0.0001 per share and, of these, 81,992,467 and 84,530,418 shares of common stock were issued and outstanding, respectively. As of July 31, 2026 and 2025, the Company had reserved shares of common stock for future issuance as follows:
July 31, 2026July 31, 2025
Exercise of stock options to purchase common stock96,573 109,958 
Vesting of stock awards2,146,189 2,672,857 
Shares available under stock plans3,698,521 4,505,472 
Shares available for ESPP
2,799,605 3,000,000 
Total common stock reserved for issuance8,740,888 10,288,287 
Equity Incentive Plans
On December 15, 2020, the Company’s stockholders adopted the 2020 Stock Plan (“2020 Plan”) for the purpose of granting equity-based incentive awards. The Company initially reserved 5,000,000 shares of its common stock for the issuance of awards under the 2020 Plan. The shares available for issuance are subject to adjustment in the event of a stock split, stock dividend or other defined changes in the Company’s capitalization. The 2020 Plan replaced the Company’s 2011 Stock Plan; however, awards outstanding under the 2011 Stock Plan will continue to be governed by their existing terms. On December 20, 2022, the Company’s stockholders approved the amendment and restatement of the 2020 Stock Plan to increase the total number of shares of common stock available for issuance under the 2020 Stock Plan by 1,780,000. On December 19, 2023, the Company’s stockholders approved the amendment and restatement of the 2020 Stock Plan to increase the total number of shares of common stock available for issuance under the 2020 Stock Plan by 3,800,000.
The shares the Company issues under the 2020 Plan will be from the Company’s pool of authorized but unissued shares. The shares of common stock underlying any awards under the 2011 Stock Plan that are forfeited, canceled, held back upon exercise or settlement of an award to cover the exercise price or tax withholding, reacquired by the Company prior to vesting, satisfied without any issuance of stock or are otherwise terminated (other than by exercise) are added back to the shares of stock available for issuance under the 2020 Plan, as amended.
Share Repurchase Program
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 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 fiscal year ended July 31, 2026, the Company repurchased 4,085,350 shares of common stock at an average price of $148.41. During the fiscal years ended July 31, 2025 and 2024, the Company did not repurchase any shares of common stock.
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 fiscal year ended July 31, 2026, the Company recorded total excise tax of $3.1 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 consolidated balance sheets as of July 31, 2026.
As of July 31, 2026, $31.9 million remained available for future share repurchases, subject to the Company’s compliance with the terms of the Credit Agreement.