v3.26.3
Fair Value Measurements
 12 Months Ended
Jul. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

NOTE 3. FAIR VALUE MEASUREMENTS

The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value as follows:

•
Level I — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;
•
Level II — Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and
•
Level III — Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.

Assets Measured at Fair Value on a Recurring Basis

Cash Equivalents and Short-Term Investments

Our money market funds are classified within Level I due to the highly liquid nature of these assets and have unadjusted inputs, quoted prices in active markets for these assets at the measurement date from the financial institution that carries these investment securities. Our investments in available-for-sale debt securities such as commercial paper, corporate bonds and U.S. government securities are classified within Level II. The fair value of these securities is priced by using inputs based on non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments, or pricing models such as discounted cash flow techniques.

The fair value of our financial assets measured on a recurring basis is as follows:

 

 

 

As of July 31, 2025

 

 

 

Level I

 

 

Level II

 

 

Level III

 

 

Total

 

 

 

(in thousands)

 

Financial Assets, Current:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

371,762

 

 

$

—

 

 

$

—

 

 

$

371,762

 

U.S. Government securities

 

 

—

 

 

 

21,703

 

 

 

—

 

 

 

21,703

 

Commercial paper

 

 

—

 

 

 

13,068

 

 

 

—

 

 

 

13,068

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

—

 

 

 

647,074

 

 

 

—

 

 

 

647,074

 

Commercial paper

 

 

—

 

 

 

163,055

 

 

 

—

 

 

 

163,055

 

U.S. Government securities

 

 

—

 

 

 

413,105

 

 

 

—

 

 

 

413,105

 

Total measured at fair value

 

$

371,762

 

 

$

1,258,005

 

 

$

—

 

 

$

1,629,767

 

Cash

 

 

 

 

 

 

 

 

 

 

 

362,969

 

Total cash, cash equivalents and short-term investments

 

 

 

 

 

 

 

 

 

 

$

1,992,736

 

Financial Assets, Non-Current:

 

 

 

 

 

 

 

 

 

 

 

 

Convertible note receivable

 

$

—

 

 

$

—

 

 

$

5,460

 

 

$

5,460

 

 

 

 

As of July 31, 2026

 

 

 

Level I

 

 

Level II

 

 

Level III (1)

 

 

Total

 

 

 

(in thousands)

 

Financial Assets, Current:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

315,721

 

 

$

—

 

 

$

—

 

 

$

315,721

 

U.S. Government securities

 

 

—

 

 

 

5,987

 

 

 

—

 

 

 

5,987

 

Commercial paper

 

 

—

 

 

 

15,701

 

 

 

—

 

 

 

15,701

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

—

 

 

 

909,507

 

 

 

—

 

 

 

909,507

 

Commercial paper

 

 

—

 

 

 

60,581

 

 

 

—

 

 

 

60,581

 

U.S. Government securities

 

 

—

 

 

 

614,067

 

 

 

—

 

 

 

614,067

 

Total measured at fair value

 

$

315,721

 

 

$

1,605,843

 

 

$

—

 

 

$

1,921,564

 

Cash

 

 

 

 

 

 

 

 

 

 

 

439,899

 

Total cash, cash equivalents and short-term investments

 

 

 

 

 

 

 

 

 

 

$

2,361,463

 

 

(1)
During the fourth quarter of fiscal 2026, we determined that the fair value of the convertible note received as part of the sale of the Frame Desktop-as-a-Service business, previously considered a Level III financial asset, was zero. As such, we wrote off the asset and recognized a loss of $5.5 million within other income (expense) in the consolidated statement of operations for the fiscal year ended July 31 2026.

Financial Instruments Not Recorded at Fair Value on a Recurring Basis

We report our financial instruments at fair value, with the exception of the 2027 Notes and 2029 Notes (collectively, the "Notes"). Financial instruments that are not recorded at fair value on a recurring basis are measured at fair value on a quarterly basis for disclosure purposes. The carrying values and estimated fair values of financial instruments not recorded at fair value are as follows:

 

 

 

As of July 31, 2025

 

 

As of July 31, 2026

 

 

 

Carrying
Value

 

 

Estimated
Fair
Value

 

 

Carrying
Value

 

 

Estimated
Fair
Value

 

 

 

(in thousands)

 

2027 Notes

 

$

497,059

 

 

$

695,295

 

 

$

498,410

 

 

$

601,115

 

2029 Notes

 

 

846,759

 

 

 

976,652

 

 

 

850,301

 

 

 

900,528

 

Total

 

$

1,343,818

 

 

$

1,671,947

 

 

$

1,348,711

 

 

$

1,501,643

 

The carrying value of the 2027 Notes as of July 31, 2025 and 2026 was net of unamortized debt issuance costs of $2.9 million and $1.6 million, respectively.

The carrying value of the 2029 Notes as of July 31, 2025 and 2026 was net of unamortized debt issuance costs of $15.7 million and $12.2 million, respectively.

The total estimated fair values of the Notes were determined based on the closing trading price per $100 of the Notes as of the last day of trading for the period. We consider the fair values of the Notes to be Level II valuations due to the limited trading activity.