Stock-Based Compensation and Stock Repurchase Program (Tables)

3 Months Ended

Jun. 30, 2025

Schedule Of Share-Based Payment Award, Restricted Stock Purchase Plan, Valuation Assumptions

The assumptions used in the Monte-Carlo simulation model to value our market-based restricted stock units were as follows:


	Three Months Ended June 30,
	2025		2024
Risk-free interest rate	3.9	%	4.5	%
Expected volatility	24% - 43%		23% - 43%
Weighted-average volatility	30	%	31	%
Expected dividends	None		None

Disclosure Of Stock-Based Compensation Arrangements By Stock-Based Payment Award

The following table summarizes our stock option activity for the three months ended June 30, 2025:


	Options (in thousands)	Weighted- Average Exercise Prices		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in millions)
Outstanding as of March 31, 2025	6	$	63.51

Granted	1	145.10
Exercised	(1)	102.37
Forfeited, cancelled or expired	—	—
Outstanding as of June 30, 2025	6	$	64.99	2.86	$	0.5
Vested and expected to vest	6	$	64.99	2.86	$	0.5
Exercisable as of June 30, 2025	6	$	64.99	2.86	$	0.5

The following table summarizes our restricted stock units activity for the three months ended June 30, 2025:


	Restricted Stock Units (in thousands)	Weighted- Average Grant Date Fair Values
Outstanding as of March 31, 2025	7,549	$	133.90

Granted	3,380	149.84
Vested	(2,420)	133.22
Forfeited or cancelled	(194)	135.41
Outstanding as of June 30, 2025	8,315	$	140.54

The following table summarizes our performance-based restricted stock unit activity, presented with the maximum number of shares that could potentially vest, for the three months ended June 30, 2025:


	Performance- Based Restricted Stock Units (in thousands)	Weighted- Average Grant Date Fair Value
Outstanding as of March 31, 2025	1,004	$	134.60
Granted	813	151.10
Vested	(266)	150.23
Forfeited or cancelled	(451)	136.91
Outstanding as of June 30, 2025	1,100	$	142.08

The following table summarizes our market-based restricted stock unit activity, presented with the maximum number of shares that could potentially vest, for the three months ended June 30, 2025:


	Market-Based Restricted Stock Units (in thousands)	Weighted- Average Grant Date Fair Value
Outstanding as of March 31, 2025	637	$	115.43
Granted	367	103.73
Vested	(34)	150.48
Forfeited or cancelled	(80)	176.70
Outstanding as of June 30, 2025	890	$	103.80

The following table summarizes stock-based compensation expense resulting from stock options, restricted stock units, market-based restricted stock units, performance-based restricted stock units, and the ESPP purchase rights included in our Condensed Consolidated Statements of Operations (in millions):


	Three Months Ended June 30,
	2025		2024
Cost of revenue	$	3	$	4
Research and development	110		101
Marketing and sales	12		12
General and administrative	27		26
Stock-based compensation expense	$	152	$	143

Schedule of Repurchase Agreements

The following table summarizes total shares repurchased during the three months ended June 30, 2025 and 2024:


	August 2022 Program			May 2024 Program			Total
(In millions)	Shares	Amount(a)		Shares	Amount(a)		Shares	Amount
Three months ended June 30, 2025	—	$	—	3.0	$	375	3.0	$	375

Three months ended June 30, 2024	1.2	$	152	1.6	$	223	2.8	$	375

(a)Amount excludes excise taxes. Accrued excise taxes are included in accounts payable, accrued, and other current liabilities and additional paid-in capital on the Condensed Consolidated Balance Sheets.