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Stock-Based Compensation Expense and Shareholders' Equity
 12 Months Ended
Jul. 31, 2025
Stockholders' Equity and Stock-based Compensation [Abstract]  
Stock-Based Compensation Expense and Shareholders' Equity Stock-Based Compensation Expense and Shareholders’ Equity
Stock-Based Compensation Expense
Stock-based compensation expense related to stock options, Stock Awards, and the ESPP purchase rights is included in the consolidated statements of operations as follows (in thousands):
Fiscal years ended July 31,
202520242023
Stock-based compensation expense$161,678 $146,700 $143,566 
Net impact of deferred stock-based compensation(122)(240)(724)
Total stock-based compensation expense$161,556 $146,460 $142,842 
Stock-based compensation expense is included in the following categories:
Cost of subscription and support revenue$13,953 $13,425 $14,073 
Cost of license revenue136 186 463 
Cost of services revenue20,759 19,013 19,257 
Research and development41,760 40,213 39,865 
Sales and marketing43,270 34,590 29,925 
General and administrative41,678 39,033 39,259 
Total stock-based compensation expense161,556 146,460 142,842 
Tax benefit from stock-based compensation62,429 37,670 22,566 
Total stock-based compensation, net of tax effect$99,127 $108,790 $120,276 
Total unrecognized stock-based compensation expense related to the Company’s stock options, Stock Awards, and ESPP purchase rights as of July 31, 2025 is as follows:
Unrecognized Expense
(in thousands)		Weighted Average Expected Recognition Period
(in years)
Stock awards$274,666 2.0
ESPP purchase rights3,814 0.4
Total unrecognized stock-based compensation expense$278,480 
Stock Awards
A summary of the Company’s Stock Awards activity under the Company’s equity incentive plans is as follows:
Stock Awards Outstanding
Number of Stock AwardsWeighted Average Grant Date Fair Value
 Aggregate Intrinsic Value(1)
(in thousands)
Balance as of July 31, 20222,785,353 $110.47 $216,478 
Granted2,287,778 $66.36 
Released(1,391,162)$100.92 $97,324 
Canceled(267,263)$99.31 
Balance as of July 31, 20233,414,706 $85.68 $289,635 
Granted1,639,400 $93.63 
Released(1,569,451)$91.48 $168,144 
Canceled(282,589)$89.22 
Balance as of July 31, 20243,202,066 $86.60 $480,534 
Granted1,099,795 $179.92 
Released(1,473,839)$99.72 $284,544 
Canceled(155,165)$95.42 
Balance as of July 31, 20252,672,857 $117.25 $604,654 
Expected to vest as of July 31, 20252,672,857 $117.25 $604,654 
(1)Aggregate intrinsic value at each period end represents the total market value of Stock Awards at the Company’s closing stock price of $226.22, $150.07, and $84.82 on July 31, 2025, 2024, and 2023, respectively. Aggregate intrinsic value for released Stock Awards represents the total market value of released Stock Awards at date of release.
In September 2023 and September 2024, certain executive officers were granted Stock Awards that cliff vest after three years, subject to continued service until such time, with the opportunity to increase the number of vested awards based on Company financial performance and, for a select number of awards, the market performance of the Company’s common stock. The fair value of the awards will be recognized over the three-year performance period and may increase or decrease depending on the estimated attainment of Company financial performance criteria. The Company determined the fair value of the portion of the awards subject to the market performance of the Company’s common stock using a Monte Carlo simulation model, which included the following assumptions:

Fiscal years ended July 31,
20252024
Performance period
September 11, 2024 to September 11, 2027
September 13, 2023 to September 13, 2026
3-year historical volatility
36.0%35.0%
3-year risk free rate
3.4%4.5%
For the portion of the award subject to the market performance of the Company’s common stock, stock-based compensation expense is recognized over the requisite service period regardless of whether or not the market condition is ultimately satisfied, subject to continued service over the period.
Prior to fiscal year 2024, certain executives and employees of the Company received PSUs, which vest over three years, with 50% vesting annually over the three year period and the remaining 50% vesting at the end of the third year.
The Company recognized stock-based compensation related to PSUs of $26.2 million, $16.2 million, and $15.0 million during the fiscal years ended July 31, 2025, 2024, and 2023, respectively.
Stock Options
A summary of stock option activity under the Company’s equity incentive plans is as follows:
 Number of Stock Options Outstanding Weighted Average Exercise PriceWeighted Average Remaining Contractual Life
(in years)
 Aggregate Intrinsic Value(1)
(in thousands)
Balance as of July 31, 202275,706 $61.93 8.7$1,196 
Granted121,168 $66.76 
Exercised(6,582)$34.60 $255 
Canceled(2,720)$69.60 
Balance as of July 31, 2023187,572 $65.90 8.8$3,549 
Granted— $— 
Exercised(15,517)$67.98 $1,061 
Canceled(5,217)$68.39 
Balance as of July 31, 2024166,838 7.9$14,088 
Granted— $— 
Exercised(56,880)$68.60 $6,982 
Canceled— $— 
Balance as of July 31, 2025109,958 6.8$17,828 
Vested and expected to vest as of July 31 2025109,958 $64.09 6.8$17,828 
Exercisable as of July 31, 2025109,958 $64.09 6.8$17,828 
(1)Aggregate intrinsic value at each fiscal year end represents the difference between the Company’s closing stock price of $226.22, $150.07, and $84.82 on July 31, 2025, 2024, and 2023, respectively, and the exercise price of outstanding stock options. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price.
Valuation of Awards
Stock Options
The fair value of the stock options is estimated at the grant date using the Black-Scholes option-pricing model, which included the following assumptions:
Fiscal years ended July 31,
202520242023
Expected term (in years)
*
*
6.0
Risk-free interest rate**
2.9% - 4.2%
Expected volatility**
32.1% - 33.1%
Expected dividend yield**—%
*No options were granted during fiscal years ended July 31, 2025, and 2024, respectively.
Employee Stock Purchase Plan

In December 2024, the Company’s stockholders approved the 2024 ESPP at the Company’s annual meeting of stockholders, with an initial pool of 3,000,000 shares of the Company’s common stock that may be issued under the ESPP. The ESPP generally provides for six-month offering periods beginning on January 6 and July 6 of each calendar year where each offering period has one purchase period. The Company’s first ESPP offering period began on July 6, 2025. Eligible employees may authorize payroll deductions between 1% and 15% of their base salary compensation to purchase shares of common stock at 85% of the lower of the market price on the date of commencement of the applicable offering period or on the last day of each six month purchase period. The ESPP does not allow eligible employees to increase their contributions during any offering period.
The Company estimated the fair value of the ESPP purchase rights using the Black-Scholes option pricing model with the following assumptions:
Fiscal year ended July 31,
202520242023
Expected term (in years)0.5
*
*
Risk-free interest rate4.3%**
Expected volatility42.1%**
Expected dividend yield—%**
*The ESPP was approved by stockholders in December 2024. Therefore, there were no ESPP purchase rights during the fiscal years ended July 31, 2024, and 2023, respectively.
No common stock was issued under the ESPP during the fiscal year ended July 31, 2025. The weighted-average grant date fair value related to rights to acquire shares of common stock under the ESPP during the fiscal year ended July 31, 2025, was $63.29 per share.
Common Stock Reserved for Issuance
As of July 31, 2025 and 2024, the Company was authorized to issue 500,000,000 shares of common stock with a par value of $0.0001 per share and, of these, 84,530,418 and 83,025,637 shares of common stock were issued and outstanding, respectively. As of July 31, 2025 and 2024, the Company had reserved shares of common stock for future issuance as follows:
July 31, 2025July 31, 2024
Exercise of stock options to purchase common stock109,958 166,838 
Vesting of stock awards2,672,857 3,202,066 
Shares available under stock plans4,505,472 5,450,102 
Shares available for ESPP
3,000,000 — 
Total common stock reserved for issuance10,288,287 8,819,006 
Equity Incentive Plans
On December 15, 2020, the Company’s stockholders adopted the 2020 Stock Plan (“2020 Plan”) for the purpose of granting equity-based incentive awards. The Company initially reserved 5,000,000 shares of its common stock for the issuance of awards under the 2020 Plan. The shares available for issuance are subject to adjustment in the event of a stock split, stock dividend or other defined changes in the Company’s capitalization. The 2020 Plan replaced the Company’s 2011 Stock Plan; however, awards outstanding under the 2011 Stock Plan will continue to be governed by their existing terms. On December 20, 2022, the Company’s stockholders approved the amendment and restatement of the 2020 Stock Plan to increase the total number of shares of common stock available for issuance under the 2020 Stock Plan by 1,780,000. On December 19, 2023, the Company’s stockholders approved the amendment and restatement of the 2020 Stock Plan to increase the total number of shares of common stock available for issuance under the 2020 Stock Plan by 3,800,000.
The shares the Company issues under the 2020 Plan will be from the Company’s pool of authorized but unissued shares. The shares of common stock underlying any awards under the 2011 Stock Plan that are forfeited, canceled, held back upon exercise or settlement of an award to cover the exercise price or tax withholding, reacquired by the Company prior to vesting, satisfied without any issuance of stock or are otherwise terminated (other than by exercise) are added back to the shares of stock available for issuance under the 2020 Plan, as amended.
Share Repurchase Program
In September 2022, the Company’s board of directors authorized and approved a share repurchase program of up to $400.0 million of the Company's outstanding common stock. Share repurchases under the program may be made from time to time, in the open market, in privately negotiated transactions and otherwise, at the discretion of management of the Company and in accordance with applicable federal securities laws, including Rule 10b-18 of the Exchange Act, and other applicable legal requirements. Such repurchases may also be made in compliance with Rule 10b5-1 trading plans entered into by the Company. As of July 31, 2025, $138.2 million remained available to purchase under the authorized and approved share repurchase program.
In September 2022, the Company entered into an accelerated share repurchase (“ASR”) agreement with a large financial institution whereupon the Company provided them with a prepayment of $200.0 million and received an initial delivery of 2,581,478 shares of the Company’s common stock. Under the terms of the ASR, the total number of shares delivered and average price paid per share was determined at the settlement date based on the volume weighted average price over the term of the ASR, less an agreed upon discount. The ASR was settled in full with the delivery of an additional 648,001 shares of common stock during the third quarter of fiscal year 2023, which resulted in total repurchases under the ASR of 3,229,479 shares of common stock at an average purchase price of $61.93 per share.
During the fiscal years ended July 31, 2025 and 2024, respectively, the Company did not repurchase any shares of common stock. During the fiscal year ended July 31, 2023, the Company repurchased 4,041,284 shares of common stock at an average price of $64.78 per share, for an aggregate purchase price of $261.8 million, which includes the shares repurchased under the ASR agreement.