Income Taxes (Tables)

12 Months Ended

Jul. 31, 2026

Schedule of (Loss) Income Before Provision for (Benefit from) Income Taxes, Domestic and Foreign

(Loss) income before provision for (benefit from) income taxes by fiscal year consisted of the following:


	Fiscal Year Ended July 31,
	2024			2025		2026
	(in thousands)
Domestic	$	(167,745	)	$	118,516	$	221,988
Foreign		66,427			93,132		105,120
(Loss) income before provision for (benefit from) income taxes	$	(101,318	)	$	211,648	$	327,108

Schedule of Provision for (Benefit from) Income Taxes, Current and Deferred

Provision for (benefit from) income taxes by fiscal year consisted of the following:


	Fiscal Year Ended July 31,
	2024			2025			2026
	(in thousands)
Current:
U.S. federal	$	—		$	1,489		$	16
State and local		2,052			3,774			3,173
Foreign		23,925			21,657			17,029
Total current taxes		25,977			26,920			20,218
Deferred:
U.S. federal		24			24			(1,091,757	)
State and local		—			—			(104,005	)
Foreign		(2,544	)		(3,662	)		(4,185	)
Total deferred taxes		(2,520	)		(3,638	)		(1,199,947	)
Provision for (benefit from) income taxes	$	23,457		$	23,282		$	(1,179,729	)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the benefit from income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes after the adoption of ASU 2023-09 is as follows:


	Fiscal Year Ended July 31, 2026
	(in thousands)
U.S. federal income tax at statutory rate	$	68,710		21.0	%
State and local income taxes (1)		(100,832	)	(30.8	)%
Foreign tax effects		7,118		2.2	%
Effect of cross-border tax laws
Effect of foreign branches		20,852		6.4	%
Tax credit
Foreign tax credits		(35,593	)	(10.9	)%
Research and development tax credits		(28,110	)	(8.6	)%
Changes in valuation allowances (2)		(1,093,034	)	(334.1	)%
Nontaxable or nondeductible items
Stock-based compensation		(19,807	)	(6.1	)%
Other		5,703		1.7	%
Changes in unrecognized tax benefits		(3,793	)	(1.2	)%
Other adjustments		(943	)	(0.3	)%
Effective tax rate	$	(1,179,729	)	(360.7	)%

(1)

State taxes in California, Illinois, Minnesota, New York, Maryland, and Georgia make up the majority (greater than 50%) of this category. State taxes include the one-time release of a $114.0 million valuation allowance from state deferred tax assets, other than California R&D.

(2)

During the fiscal year ended July 31, 2026, we recorded a $1,094.2 million tax benefit related to the release of our valuation allowance on U.S. federal deferred tax assets, partially offset by $1.2 million of tax expense related to the increase in the valuation allowance for capital losses generated during fiscal 2026.

For the fiscal years ended July 31, 2024 and 2025, the provision for income taxes differs from the amount computed by applying the statutory federal income tax rate, in accordance with the guidance prior to the adoption of ASU 2023-09, as follows:


	Fiscal Year Ended July 31,
	2024			2025
	(in thousands)
U.S. federal income tax at statutory rate	$	(21,277	)	$	44,446
Change in valuation allowance		115,826			89,264
Stock-based compensation		(47,632	)		(67,782	)
Effect of foreign operations		(2,553	)		(7,111	)
Research and development tax credits		(30,076	)		(41,597	)
Non-deductible expenses		4,704			3,413
Change in unrecognized tax benefit		2,840			(4,977	)
State income taxes		2,052			3,774
Tax impact of debt conversion		—			2,383
Other		(427	)		1,469
Total	$	23,457		$	23,282

Schedule of Income Taxes Paid, Net of Refunds

The following table summarizes income taxes paid, net of refunds, exceeding five percent of total income taxes paid, net of refunds, in the following jurisdictions:


	Fiscal Year Ended July 31, 2026
	(in thousands)
U.S. state and local	$	3,095
Foreign
Netherlands		5,192
India		13,446
Other		7,942
Total cash taxes paid, net of refund	$	29,675

Schedule of Deferred Tax Assets and Liabilities

The temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows:


	As of July 31,
	2025			2026
	(in thousands)
Deferred tax assets:
Net operating loss carryforward	$	416,176		$	393,829
Tax credit carryforward		365,828			431,457
Deferred revenue		213,308			237,076
Capitalized research expenses		356,927			287,895
Leases		41,364			48,739
Accruals and reserves		30,940			44,979
Stock-based compensation		17,573			18,176
Intangibles and goodwill		8,044			7,330
Property and equipment		—			2,034
Other assets		26,434			26,610
Total deferred tax assets		1,476,594			1,498,125
Deferred tax liabilities:
Deferred commission expense		(79,757	)		(87,572	)
Leases		(41,294	)		(47,581	)
Prepaid expenses		(2,387	)		(2,412	)
Property and equipment		(911	)		—
Intangibles and goodwill		(1,504	)		(1,649	)
Other		(15,984	)		(18,985	)
Total deferred tax liabilities		(141,837	)		(158,199	)
Valuation allowance		(1,318,056	)		(124,378	)
Net deferred tax assets	$	16,701		$	1,215,548

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of our unrecognized tax benefits, excluding accrued interest and penalties, is as follows:


	Fiscal Year Ended July 31,
	2025			2026
	(in thousands)
Balance at the beginning of the year	$	102,647		$	110,178
Increases related to current year tax positions		9,651			10,357
Increases related to prior year tax positions		1,670			6,438
Decreases related to prior year tax positions		(144	)		(3,464	)
Lapse of statute of limitations/Settlements/Other		(3,646	)		(9,966	)
Balance at the end of the year	$	110,178		$	113,543