v3.26.1
Income Taxes (Tables)
 12 Months Ended
Jul. 31, 2026
Income Tax Disclosure [Abstract]  
Company's income (loss) before provision for income taxes
The Company’s income (loss) before provision for (benefit from) income taxes is as follows (in thousands):
Fiscal years ended July 31,
202620252024
Domestic$142,569 $24,752 $(44,280)
International21,548 24,643 17,442 
Income (loss) before provision for (benefit from) income taxes$164,117 $49,395 $(26,838)
Schedule of Components of Income Tax Expense
The provision for (benefit from) income taxes consisted of the following (in thousands):
Fiscal years ended July 31,
202620252024
Current:
U.S. federal$4,719 $2,050 $738 
State2,878 2,567 1,710 
Foreign3,762 4,656 3,563 
Total current11,359 9,273 6,011 
Deferred:
U.S. federal12,673 (26,188)(22,856)
State186 (3,729)(3,396)
Foreign616 235 (494)
Total deferred13,475 (29,682)(26,746)
Total provision for (benefit from) income taxes $24,834 $(20,409)$(20,735)
Effective Income Tax Rate Reconciliation
The Company adopted ASU 2023-09 on a prospective basis beginning with the fiscal year ended July 31, 2026. The following table reconciles differences between income taxes calculated using the statutory federal income tax rate of 21% and the provision for income taxes (in thousands):
Fiscal years ended July 31, 2026
Amount%
U.S. federal income tax$34,465 21.0 %
State and local taxes, net of federal benefit(1)
3,064 1.9 %
Tax credits
(8,959)(5.5)%
Nontaxable or nondeductible items
Stock-based compensation(20,908)(12.7)%
Non-deductible officers’ compensation14,187 8.6 %
Other permanent differences2,386 1.5 %
Cross-border tax laws
Foreign earnings taxed in the U.S.3,064 1.9 %
FDII(1,714)(1.0)%
Foreign tax credits(5,670)(3.5)%
Other604 0.4 %
Foreign Tax Effects
Other foreign jurisdictions(19)— %
Withholding taxes
Argentina2,911 1.8 %
Other foreign jurisdictions1,304 0.8 %
Change in valuation allowance768 0.5 %
Other adjustments$(649)(0.4)%
Total provision for (benefit from) income taxes
$24,834 15.1 %
(1) State taxes in Illinois, New Hampshire, New Jersey, and New York made up the majority (greater than 50 percent) of the tax effect in this category.
Differences between income taxes calculated using the statutory federal income tax rate in 2025 and 2024, respectively, and the provision for income taxes, are as follows (in thousands):
Fiscal years ended July 31,
20252024
U.S. federal income tax$10,375 $(5,634)
State taxes, net of federal benefit(1,200)(1,702)
Stock-based compensation(28,474)(4,415)
Non-deductible officers' compensation10,882 4,996 
Foreign income taxed at different rates(2,023)(960)
Research tax credits(14,884)(12,067)
BEAT3 (3,091)
Foreign earnings taxed in the U.S.3,366 2,390 
Non-deductible acquisition costs— 30 
Permanent differences and others1,434 1,254 
Change in valuation allowance(5,682)491 
FDII(5,429)(2,027)
Debt Retirement Expense11,223 — 
Total provision for (benefit from) income taxes$(20,409)$(20,735)
Tax effects of temporary differences
The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities are as follows (in thousands):
As of July 31,
20262025
Accruals and reserves$36,022 $26,083 
Stock-based compensation12,401 10,174 
Deferred revenue252 1,284 
Capitalized research and development152,144 168,266 
Property and equipment720 398 
Lease liabilities6,735 8,612 
Convertible debt9,475 12,086 
Net operating loss carryforwards18,788 19,385 
Tax credits170,169 158,257 
Total deferred tax assets406,706 404,545 
Less valuation allowance75,058 66,295 
Net deferred tax assets331,648 338,250 
Less deferred tax liabilities:
Intangible assets20,407 16,859 
Operating lease assets5,932 7,782 
Unremitted foreign earnings2,502 1,759 
Capitalized commissions22,435 18,831 
Total deferred tax liabilities51,276 45,231 
Total net deferred tax assets$280,372 $293,019 
Schedule of Cash Flow, Supplemental Disclosures
Disclosed below is a summary of income taxes paid by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 (in thousands):
July 31, 2026
U.S. federal
$800 
U.S. state and local
New York
773 
Other
2,116 
Total U.S. state and Local2,889 
Foreign
India2,496 
Australia663 
Aggregated withholding taxes4,215 
Other2,108 
Total Foreign9,482 
Net cash paid (refunds received) for income taxes$13,171 
Summary of activity related to unrecognized tax benefits
Activity related to unrecognized tax benefits is as follows (in thousands):
Fiscal years ended July 31,
202620252024
Unrecognized tax benefits - beginning of period$25,740 $21,520 $20,518 
Gross increases - prior period tax positions— 2 231 
Gross decreases - prior period tax positions(1,043)(134)(2,664)
Gross increases - current period tax positions4,209 4,352 3,435 
Unrecognized tax benefits - end of period$28,906 $25,740 $21,520