We granted 3 million restricted stock units (RSUs), including performance-based RSUs (PBRSUs), with a weighted average grant date fair value of $103.99 per share during the three months ended July 25, 2025.

In the three months ended July 25, 2025, we granted PBRSUs to certain of our executives. Each PBRSU has performance-based vesting criteria (in addition to the service-based vesting criteria) such that the PBRSUs cliff-vest at the end of a three year performance period, which began on the date specified in the grant agreements and typically ends on the last day of the third fiscal year, following the grant date. The number of shares that will be used to calculate the settlement amount for all of these PBRSUs at the end of the applicable performance and service period will range from 0% to 200% of a target number of shares originally granted. For half of the PBRSUs granted in the three months ended July 25, 2025, the number of shares used to calculate the settlement amount will depend upon our Total Stockholder Return (TSR) as compared to the TSR of a specified group of benchmark peer companies (each expressed as a growth rate percentage) calculated as of the end of the performance period. For the remaining half of the PBRSUs granted in the three months ended July 25, 2025, the number of shares used to calculate the settlement amount will depend upon the Company's billings result average over the three-year performance period. The billings result average is computed based on achievement against annual billings targets, with each target set at the beginning of the respective fiscal year, during the three-year performance period. Billings for purposes of measuring the performance of these PBRSUs means the total obtained by adding net revenues as reported on the Company's Consolidated Statements of Income to the amount reported as the change in deferred revenue

and financed unearned services revenue on the Consolidated Statements of Cash Flows for the applicable measurement period, excluding the impact of fluctuations in foreign currency exchange rates. The aggregate grant date fair value of PBRSUs granted in the current year was $51 million, which is being recognized to compensation expense over the remaining performance / service periods.

Stock-based compensation expense is included in the condensed consolidated statements of income as follows (in millions):


	Three Months Ended
	July 25, 2025		July 26, 2024
Cost of product revenues	$	1	$	1
Cost of hardware support and other services revenues		6		6
Sales and marketing		34		35
Research and development		25		31
General and administrative		17		12
Total stock-based compensation expense	$	83	$	85

As of July 25, 2025, total unrecognized compensation expense related to equity awards was $845 million, which is expected to be recognized on a straight-line basis over a weighted-average remaining service period of 2.4 years.

In the first quarter of fiscal 2026, our Board of Directors authorized the repurchase of an additional $1.1 billion of our common stock. Under this program, we may purchase shares of our outstanding common stock through solicited or unsolicited transactions in the open market, in privately negotiated transactions, through accelerated share repurchase programs, pursuant to a Rule 10b5-1 plan or in such other manner as deemed appropriate by our management. The stock repurchase program may be suspended or discontinued at any time.

The following table summarizes activity related to the stock repurchase program for the three months ended July 25, 2025 (in millions, except for per share amounts):


Number of shares repurchased		3.0
Average price per share	$	99.76
Stock repurchases allocated to additional paid-in capital	$	67
Stock repurchases allocated to retained earnings	$	233
Remaining authorization at end of period	$	1,152

The following is a summary of our activities related to dividends on our common stock (in millions, except per share amounts):


	Three Months Ended
	July 25, 2025		July 26, 2024
Dividends per share declared	$	0.52	$	0.52
Dividend payments allocated to additional paid-in capital	$	104	$	35
Dividend payments allocated to retained earnings	$	—	$	72

On August 21, 2025, we declared a cash dividend of $0.52 per share of common stock, payable on October 22, 2025 to holders of record as of the close of business on October 3, 2025. The timing and amount of future dividends will depend on market conditions, corporate business and financial considerations and regulatory requirements. All dividends declared have been determined by us to be legally authorized under the laws of the state in which we are incorporated.